One option for using your American Express Membership Rewards points which is often forgotten about is converting them to Nectar points.
The transfer rate is 1:1. The minimum transfer is just 1 point which makes this a useful way of using up the last few hundred points on your account if you are closing down your Amex card as most partners only accept transfers in chunks of 1,000.
Few Nectar deals are desperately exciting because most Nectar offers are only worth 0.5p per point. This page on our sister site Shopper Points shows the best value Nectar redemptions – ie everything which gets you more than the standard 0.5p per point! You can do a lot better with your Amex points by converting to airline or hotel points.
Until the 25th June, however, there is an interesting eBay promotion available.
You need to check that you are targeted for this by logging in at the Nectar website and looking at My Bonus Offers.
Assuming you can see the offer, if you cash in your Nectar points for eBay credit by the 25th June, you will get a 50% rebate of the points back into your Nectar account.
Let’s look at how this works.
Imagine you move 10,000 Membership Rewards points to Nectar. If you convert those to eBay credit, you would receive £50 – the usual 0.5p per point.
However, on this occasion, Nectar will refund you 50% of the points! This means that you have only paid 5,000 points for your £50 of eBay credit. That is 1p per Nectar point (and so 1p per American Express Membership Rewards point) which is an excellent deal.
(An easy way of using up the eBay credit is to buy supermarket gift vouchers. You will pay very close to face value including postage but it is an easy way to liquidate your credit.)
There is one snag though.
You are NOT really getting 1p per Membership Rewards point because you need to factor in what you do with the rebated points. Take a look at this example:
Transfer 10,000 Amex points to Nectar
Spend 10,000 Nectar points on a £50 eBay voucher
Get 5,000 Nectar points refunded to your Nectar account
And then …. you need to use the rebated points for another Nectar deal at just 0.5p per point (£25) of value
You would actually have got £75 of value in total for your 10,000 Nectar points which is 0.75p per point.
If you already have Nectar points in your account then this is an excellent deal and you are genuinely getting 1p per point. If you are transferring in from Amex, you will only be getting 0.75p per Amex point. Hope that makes sense …..!
American Express transfers to Nectar are usually very quick so you have a very good chance of a transfer made today arriving on or by the 25th. This is an additional risk, of course.
Note that there is a maximum conversion of 40,000 Nectar points (£200 of eBay credit) allowed under this offer. You will not receive the 50% points rebate on any figure above this.
PS. If you do buy something on eBay with Nectar credit, please remember to use our eBay affiliate link. Either click here or use the link in the right-hand margin of HFP. We receive a small commission on every purchase. Thank you.
(Want to earn more miles and points from credit cards? Click here to visit our ‘Credit Cards Update’ page or use the link in the menu bar at the top of the page.)