Avios to Nectar conversion changing

safe_hands2

Just had email. Will change in March. Barclaycard avios card will now only pay 0.5% cashback equivalent!

Mark_d

I've not seen anything on an official website saying that the Avios to Nectar conversion rate is changing.  Are you able to find something?  Perhaps the email is some kind of scam.

WillPS

safe_hands2 said:

Just had email. Will change in March. Barclaycard avios card will now only pay 0.5% cashback equivalent!

We're changing the Avios to Nectar conversion rate
 
We wanted to let you know that from 11 March 2024, the conversion rate for Avios to Nectar points will be changing.

When converting Avios to Nectar points, the current conversion rate is 300 Avios = 400 Nectar points. From 11 March 2024 that will be changing to 400 Avios = 400 Nectar points. The Nectar to Avios conversion rate will remain the same.

This change will take place automatically and your British Airways Executive Club and Nectar accounts will continue to be linked so you don’t need to do anything.

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Still a very good deal, but it's all the encouragement I need to take up the Santander offer instead.

WillPS

Mark_d said:

I've not seen anything on an official website saying that the Avios to Nectar conversion rate is changing.  Are you able to find something?  Perhaps the email is some kind of scam.

It's real. BA hide away all the key info regarding the Nectar partnership so you have to be logged in.

I'm not sure what benefit a scammer would have from misinforming about a conversion rate in any case.

MSE_Petar

Hi everyone,

Thanks for flagging this and for the discussion.

British Airways has confirmed the change to us and we've published the following MSE News story:

Got Avios you won't use for flights? ‌Swap them to Nectar before 11 March as their value is being slashed

Thanks again,
MSE Petar

jimroy

Yeah. I was notified about this too. I'm a bit p'd off about it though.

I've been trying to get extra Avios points through purchases direct from my Avios account with retailers going back ten months and they keep blatantly fobbing me off. And I know I have no legal recourse in such matters, but it's a waste of my time and energy.

I'm a regular Sainsbury's etc shopper so I appreciate the Nectar points since Sainsbury's Bank halved the Nectar points offer on their credit card.

I'm considering applying for an AMEX Nectar card now.

We shall see. Nothing is guaranteed.

FredTrump

The problem with converting through Avios to Nectar is you are doubly vulnerable to last minute devaluations in the chain like this.

It's almost certain that Barclays are providing this enhanced Avios rate -  in conjunction with BA's parent (IAG) - in the hope that you'll use them on their flights and therefore transfers out to Nectar probably operate at a loss to IAG.

WillPS

FredTrump said:

The problem with converting through Avios to Nectar is you are doubly vulnerable to last minute devaluations in the chain like this.

It's almost certain that Barclays are providing this enhanced Avios rate -  in conjunction with BA's parent (IAG) - in the hope that you'll use them on their flights and therefore transfers out to Nectar probably operate at a loss to IAG.

It's not really that much of a risk though is it? If the card or conversion rate became uncompetitive, one could simply stop using the card and/or transfer to a different product like the 0.25% reward product.

Barclays pay out Avios monthly, BA autotransfer Avios to Nectar weekly. In the worst case scenario that the partnership was suddenly dropped between Avios payouts, you'd be out one month's pseudo cashback. Weigh that up against whatever additional you will have earned vs a 'safer' option like the 0.3% Asda card... you'd have to be really unlucky for your entire gain to be wiped out.

I'm not sure what you mean by Barclays providing an 'enhanced Avios rate'. They'll pay IAG a set amount for Avios, and in exchange have the rights to market the cards. They won't care a jot what you do with the Avios afterwards. 

We don't know what's being paid, but 0.8p is supposedly the lowest price BA would sell an Avios point for (to BA, Amex etc). It's highly unlikely that JS will be charging them 0.8p for 0.5p worth of Nectar points, so IAG are making something.