Glossary · Rewards
Unified Valuation Model (UVM)
The Unified Valuation Model converts every card's points, miles, and cash back into a single cash-equivalent dollar figure so different reward currencies can be compared on one scale.
A 4× points card and a 3% cash-back card cannot be compared directly — points and dollars are different units. The UVM normalizes them by assigning each reward currency a cents-per-unit valuation.
Pikt values Chase Ultimate Rewards and Bilt points at 1.25¢, and Amex Membership Rewards, Capital One miles, and plain cash back at 1.0¢. Earned value = spend × multiplier × cents-per-unit ÷ 100.
Because every option is reduced to dollars, the router can rank a 4× Membership Rewards purchase against a 3% cash-back purchase honestly, and show you a single dollar estimate for each swipe.
Related terms
- Reward Routing — Reward routing is the practice of automatically selecting, at the moment of purchase, the credit card in your wallet that earns the most value on that specific merchant and category.
- Category Multiplier — A category multiplier is the rate at which a card earns rewards in a given spending category — e.g. 4× points on dining or 6% back at U.S. supermarkets.
- Cash-Equivalent Value — Cash-equivalent value is the dollar amount a points or miles balance is worth at a chosen redemption rate, used to compare reward currencies against plain cash back.