American Express Nectar Credit Card: is its offer as good as it seems?

American Express has now corrected an issue on their website regarding the point-earning potential of their card.

Please note that this article is now out of date.

It concerned a problem with the wording on American Express' website, regarding the point-earning potential of this card, which American Express has now corrected (as of 28/01/19).

American Express now makes it clear that the card earns a minimum of 3 Nectar points per £1 spent, whereas previously the site implied 4 points could be earned per £1. Shoppers at Sainsbury's earn 3 points per £1 spent, for instance.

Therefore the rest of this article is for background only and is no longer applicable.

You can find out more about the American Express Nectar credit card here.

Our previous article

Sainsbury’s shoppers could be in for an unpleasant surprise when signing up for the American Express Nectar Credit Card through its site.

That's because the card's terms and conditions mean you could earn far fewer Nectar points than you might expect.

Aimed at keen Nectar points collectors, the credit card allows you to earn points on all purchases and comes with a 20,000 point sign up bonus if you meet a £2,000 minimum spend in the first three months.

Best of all, the card’s webpage says you can earn ‘four points for virtually every full £1 spent at Nectar partners’, as you can see from the screengrab below.

You’d presume that means you'd earn four points at Sainsbury’s right? What's more, throw in your normal Nectar card perks and it sounds like you're on to a big winner. 

But it's not quite so straightforward.

For starters, it's only when you click on the link for more information about the four points that it explains you'll actually earn just two Nectar points with this credit card plus "two points on your Nectar loyalty card at most participating partners" (you can click on the image below to view a larger version of the text in full).

That's a blow, as shoppers might initially think they can earn four points on this card as well as their normal Nectar card points. And it gets worse.

As regular Sainsbury's shoppers will know, you actually only earn one point per £1 at Sainsbury's.

So, for every quid spent at Sainsbury’s you're really only getting three Nectar points with this credit card.

American Express’ terms and conditions explain that "for BP, Expedia and Homebase, different point levels apply as the base earn rate on the loyalty card varies.”

But crucially, they don’t mention Sainsbury’s among these exclusions.

Why do we care?

Admittedly, the difference between three points and four might not seem like a big deal.

But the American Express Nectar Credit Card isn’t free: it costs £25 a year (although charges are waived for the first year).

Nectar points collectors will have to decide whether they’ll earn enough Nectar points over a year to make up for the cost of the card. That’s 5,000 Nectar points, presuming there’s no bonus points redemption offer taking place.

Whilst the Nectar scheme includes Argos and eBay, Sainsbury’s is the only supermarket taking part and hence the place you’re likely to spend most of your money over a year and earn most points.

And in many ways, Sainsbury's is the headline act of the Nectar points scheme. It's where many people rack up most of their spending.

Recently, for an article comparing Nectar and Clubcard, we calculated how many points you’d earn from the weekly average household groceries spend, including how many you’d earn using the American Express Nectar Credit Card.

The difference between earning three points/£1 and four points/£1 at Sainsbury’s adds up to over 3,000 points a year.

If you thought you were getting four points, you'd end up earning £15 less than expected.

Read more: how to boost your Nectar points

Is it clear to customers?

At loveMONEY, we’re big fans of rewards credit cards: earning points and airmiles for your normal spending is one of the easiest money-making techniques out there.

And to be clear, we’re still fans of the Nectar American Express card, even after finding out it earned slightly fewer points than we thought.

The 20,000 sign-up bonus is a nice perk, as is being able to earn points everywhere you shop.

What we take issue with is the muddying of the waters, whether intentionally or unintentionally, over how many points you’ll earn with Amex when viewing it on their website.

Interestingly, both Sainsbury's and Tesco's own credit cards allow you to earn extra points, by using both your credit card and membership card.

We feel that American Express should make it clear that Sainsbury’s is one of those ‘exceptions’ and you’ll earn three points per £1 spent, not four.

We contacted American Express about this on the 18 December, and despite encouraging signs, they’ve still not changed the wording on this webpage.

We’ll keep you updated if this changes. In the meantime, please do let us know what you think: having read the wording on the Amex site, would you expect to pocket four points at Sainsbury's? Or is the description they offer clear enough?

Please vote in our poll below and let us know your thoughts in the comments sections below.

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