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Card points: are Gen Z ecommerce sellers trading at a loss to travel?

ended 01. October 2026

Credit card borrowing is growing at 13.3 per cent a year, the Bank of England said on 29 September 2026, and the effective rate on interest-charging cards rose to 21.55 per cent in August. Those figures cover personal cards, but there is a business-card version of the story.

Some Gen Z founders are building ecommerce businesses where the goal is not profit but spend. They list products on Amazon, eBay or Shopify, buy from a supplier only once something sells, and put every purchase through a rewards card. The points turn into business-class flights and long-haul travel.

The points are not free money. VAT registration is tested on turnover, not profit, so a break-even seller can cross the threshold in weeks and then owe VAT that a break-even price never allowed for. A charge card also has to be cleared in full every month, whether or not the marketplace has paid out.

  1. Is running an ecommerce business at break-even for card points a clever use of spend, or a risky habit dressed up as a side hustle?
  2. Who carries the risk when the spending outruns the sales, and how would a lender read that card activity on a mortgage application?
  3. Do you, or your clients, turn business card spend into flights or holidays, and what did the points really cost to earn?

2 responses from the Newspage community

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Harvey DhillonVerified
Founder & CEO at Zmartly
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As ecommerce accountants, we're seeing Gen Z run ecommerce businesses as a points machine, not a profit engine. The model is dropshipping: list on Amazon, eBay or Shopify with no stock, and buy from a retailer only once something sells. No warehouse, no start-up capital, and card spend can run to £100,000 a month, a year of holidays in points. We also act for travel agencies, who say some Gen Z customers now fly long-haul business class, and I'd bet points are how. VAT is where the maths breaks. Registration is tested on turnover, not profit, so £100,000 of monthly sales passes the £90,000 threshold in month one. From then VAT is due on your sales, and a break-even price has no room for it unless your supplier charged VAT you can reclaim. The card still has to be cleared monthly, whether or not the marketplace has paid you. Business class is lovely. Flying it at a loss isn't.
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Nouran MoustafaVerified
Practice Principal & IFA at Roxton Wealth
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Running an ecommerce business at break-even purely for card points is not financial engineering. It is leverage wearing a frequent-flyer badge.

The danger is that turnover can grow much faster than profit. Once taxable turnover breaches the VAT threshold, HMRC does not care that your margin was tiny or zero. The tax bill still exists. Add marketplace payout delays and a charge card that must be cleared in full, and suddenly the “free” business-class flight can become very expensive.

From a mortgage perspective, lenders care about sustainable income and existing commitments, not how many Avios you earned. Heavy revolving balances, weak business cashflow or debt needed to keep stock moving can raise questions around affordability and resilience.

Points are a bonus on spending you already needed to make.

If you are manufacturing spend to earn rewards, you are not gaming the card company. You may be gaming yourself.