To help drive up its credit card and retail banking business, CIBC, a large, national Canadian bank, entered into an agreement with Air Canada in October 2003 in relation to the Aeroplan Miles Program. In 2004, the agreement was assigned to Aeroplan. Under the agreement, Aeroplan would promote and refer Aeroplan members and other members of the public to apply for CIBC’s credit cards. Holders of CIBC’s credit cards would be given Aeroplan Miles, which could then be redeemed for flights, merchandise, or gift cards. In exchange, CIBC would pay Aeroplan a fee, computed using a formula based on the number of Aeroplan Miles issued.
Source: goodservicetax.com
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