In a disappointing move, HSBC has worsened the transfer rate for credit card points to travel partner programs. Previously, cardholders enjoyed a simple 1:1 transfer ratio. Now, however, most transfers come at a paltry rate of 1.25 HSBC points to 1 partner point.
What Does This Mean?
For many customers with older HSBC cards, this change may not have an immediate impact. Some of the affected cards have already been discontinued.
Others haven’t offered bonuses for quite some time. But for loyal HSBC customers still accumulating points under old terms, this devaluation stings.
Current Limited-Time Offer
There is a bit of good news. HSBC is currently running a 25% transfer bonus to Avios programs like the British Airways Executive Club. This temporarily brings the rate back up to 1:1. Travel experts first reported the change courtesy of blogger TravelinSperry.
Iberia, Aer Lingus, and British Airways took the biggest hit, with rates plummeting from 1:1 to 1.25:1 overnight. Fortunately, the special 25% promotion will soften the blow for transfers made between December 7, 2023, and January 3, 2024.
HSBC’s Official Stance
Here are the Official links for this Offer.
“Get a 25% Bonus Avios when you transfer HSBC Points to Avios between December 7, 2023, and January 3, 2024. This applies to the HSBC Elite World Elite Mastercard and Premier World Mastercard rewards programs. Bonus Avios will be credited within 7-10 business days after transfer.”
So for now, HSBC is essentially danging a temporary offer to distract from the broader policy change. Come January, however, points transfers will offer 25% less value across the board. Loyal customers have a right to feel shortchanged by HSBC’s pivot. The bank should offer permanent remedies, not just limited-time band-aids.
Conclusion
HSBC’s decision to permanently devalue points transfers shows a lack of regard for cardholder loyalty and rewards. While the temporary 25% transfer bonus to Avios programs helps soften the blow, it is just a short-term band-aid.
The 1.25:1 transfer ratio is here to stay in 2024 and beyond. That change alone makes HSBC less competitive compared to other issuers. But the real loss is the bank’s depth of trust and goodwill from once-loyal customers.
After this bait-and-switch on rewards value, some may question whether it makes sense to continue engaging with HSBC cards at all. If the bank wants to regain that trust, it needs to take more transparent and permanent steps – not just rely on limited-time promotions. For now, affected customers have good reason to feel shortchanged.
News credit to TravelinSperry.
