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How Credit Card Rewards Work in the UK: Cashback, Points and Avios

By PointsExplainedLast reviewed

List the rewards you would really use

Write down two or three redemptions you would actually make in the next year, such as a statement credit, a supermarket voucher or a specific flight. A currency you never redeem is worth nothing to you, however generous the earn rate looks.

Price each option in pence per point

For each redemption, subtract any cash you still pay from the cash price it replaces and divide by the points needed. Compare the answer with the cashback you would have earned on the same spending.

Check what counts as eligible spending

Read the card's reward terms for exclusions. The terms for one American Express UK cashback card, for example, exclude balance transfers, cash advances, foreign exchange transactions and interest from earning cashback.

Automate full repayment

HSBC suggests setting up a Direct Debit or standing order so you don't miss a repayment. Paying the full statement balance by the due date keeps the interest-free period on purchases that makes rewards worthwhile.

Where this comes from

Sources

The documents this guide relies on. If one has changed since we read it, the document is right and this guide is out of date.

  1. American Express UK: Cashback credit cards

    Amex UK cashback paid as an annual statement credit around the account anniversary; exclusions (balance transfers, cash advances, foreign exchange transactions, interest, charges); cashback reversed on returns.

    americanexpress.com · Accessed
  2. American Express UK: Membership Rewards

    Membership Rewards available on selected Amex cards; redemption options (gift cards, shopping, pay with points at checkout, credit to card account, transfers to airline/hotel partners); transfers irreversible and only into an account in your own name.

    americanexpress.com · Accessed
  3. Avios: Terms and Conditions

    Avios shared by AerClub, British Airways Club, Iberia Club and Vueling Club (Part A definitions); Rewards include flight tickets and ticket upgrades where offered, plus hotel and car hire bookings (Part A, F.6); members liable for taxes, fees and carrier-imposed charges on reward travel (F.5.8); Avios part-payment for selected cash flight bookings (F.10.1); Avios and membership expire after 36 consecutive months without earning, redeeming or buying (introduction); Combine my Avios moves are not earning or redeeming (F.9.11).

    avios.com · Accessed
  4. Virgin Atlantic: Flying Club terms and conditions (effective from 30 October 2024)

    Virgin Points have no cash value and cannot be exchanged for cash (cl. 3.1.7); right to change, replace or suspend any aspect of the programme with immediate effect on notice (cl. 10.5); Virgin Points are the Flying Club/Virgin Red currency (cl. 1.2, 1.3(b)).

    virginatlantic.com · Accessed
  5. HSBC UK: What is a credit card interest-free period?

    Most cards give up to 56 days interest-free on purchases if paid in full; if not repaid in full, interest usually runs from the date transactions were added; suggestion to set up a Direct Debit or standing order.

    hsbc.co.uk · Accessed
  6. Virgin Atlantic: Flying Club - Earn points

    Virgin Points can be earned with a Virgin Atlantic co-branded credit card and by exchanging points from partners including American Express Membership Rewards (as displayed on the en-GB page, 25 September 2026).

    virginatlantic.com · Accessed
Questions

About this guide

Can I move points back after transferring them to an airline?

Not with American Express Membership Rewards: Amex says transfers to partner programmes are irreversible. Other programmes set their own rules, so check the terms before you move points and transfer only when you have found the reward you want.

Do Avios expire?

They can. The Avios terms say that if you have not earned, redeemed or bought Avios for 36 consecutive months, all your Avios and your membership expire. Moving Avios between programmes with Combine my Avios does not count as earning or redeeming.

Is cashback better than points?

It depends on how you redeem. Work out the pence-per-point value of the redemptions you would realistically make and compare it with the cashback rate on the cards you are considering. If you would not use the travel rewards, cashback's fixed value is usually the easier choice to judge.
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