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I’m out of the UK most of the year and tend to use Monzo and Revolut cards which don’t have an explicit non-GBP transaction fee, but do have something like a 1% FX spread. Given that Preferred Rewards Gold gives 2x MR for non-GBP transactions and given valuation of MR at 1.4p (by The Points Guy, for example), am I correct in thinking that using Preferred Rewards Gold as a daily driver for non-GBP transactions can be fairly attractive even compared to explicitly “non-fee” Debit cards? Obviously, 1.4p per MR is the best, current case for certain airmiles and MR are not as fungible as cash.
As an example, using the Amex Foreign Transaction Calculator: for a 1000 EUR charge, the 2.99% non-GBP transaction charge would be 25.14 GBP. But this charge (841.04 GBP at today’s Amex rate) would give 1682 MR (23.55 GBP at the 1.4p/MR rate). That’s a 0.18% charge accounting for the difference between value+fee and value+MR.
For what it’s worth, the spread on the Amex GBPEUR rate today seems to be roughly 1%, similar to Monzo. So, assuming the above is correct, the additional cost for using Amex over Monzo would be 0.18% (ignoring the annual fee).
Am I missing anything here?
It’s really down to what you will cash those MR into.
I would only value them at 1p (e.g. into Avios or VS) which greatly changes the figures to make using it abroad quite pricy.
There’s also opportunity costs. E.g. Using a Curve card with a Barclaycard Avios (the free one) card for example will make you 1 Avios per £1 spent with 0 charge.
If you cash out MR to Avios then you’re paying 2.99p per £1 spent for 2 Avios compared to 0p for 1 Avios per £1 spent.
Good hint regarding Curve+Barclaycard Avois, thanks! I understand the Curve free tier would allow 1000 GBP or EUR/month spend, just to add this to the consideration. It’s worth also considering that using Curve invalidates S75 protection, where Preferred Rewards Gold has Purhcase and Refund Protection.
Good hint regarding Curve+Barclaycard Avois, thanks! I understand the Curve free tier would allow 1000 GBP or EUR/month spend, just to add this to the consideration. It’s worth also considering that using Curve invalidates S75 protection, where Preferred Rewards Gold has Purhcase and Refund Protection.
Also, on the PRG, in addition to the foreign spend bonus you also get the 0.66MR bonus at £15k until your next anniversary if that’s after 12 October and then will reduce to 0.5MR paid at £5k increments up to max 12.5K MR at £25k. There is also the additional 1 MR on foreign currency airline spend (so total 3MR) and although haven’t had one recently, usually quite a few bonus MR offers every year.
As you say, I agree the s75 protection is worth more than people realise when spending abroad.
- This reply was modified 55 years, 4 months ago by .
Good hint regarding Curve+Barclaycard Avois, thanks! I understand the Curve free tier would allow 1000 GBP or EUR/month spend, just to add this to the consideration. It’s worth also considering that using Curve invalidates S75 protection, where Preferred Rewards Gold has Purhcase and Refund Protection.
Also, on the PRG, in addition to the foreign spend bonus you also get the 0.66MR bonus at £15k until your next anniversary if that’s after 12 October and then will reduce to 0.5MR paid at £5k increments up to max 12.5K MR at £25k. There is also the additional 1 MR on foreign currency airline spend (so total 3MR) and although haven’t had once recently, usually quite a few bonus MR offers every year.
Exactly: maximising annual spend on Amex for those extra bonuses (and retention bonuses) and the Payment/Refund Protections are underlying motivations for using Amex outside the UK, even if you break even in the end.
Agreed. I have been known to use my Amex Gold abroad if I think I may not hit the £15k on my wife’s Gold for the £10k bonus. £1,000 is only a net £10 fee after the 2 points per £1.
Similarly, if you are self employed and have deductible expenses (as we do) it also makes sense. The 3% is really 1.8% after the tax shield so 2 points per £1 looks fine.
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