Published on October 17th, 2017 | by William Charles20
HSBC Introduces New Premium Credit Card: Premier World Elite
HSBC just recently launched a new cash rewards card before that they offered three other credit cards. They have now also entered the premium credit card market alongside other new products such as the Chase Sapphire Reserve, Bank of America Premium Travel Rewards, U.S. Bank Altitude Reserve and others. The new HSBC card is the called ‘HSBC Premier World Elite Mastercard® credit card‘.
- Annual fee of $395, authorized users are $65 per user
- Sign up bonus of 50,000 points after $4,000 in purchases within the first three months of account opening
- Card earns at the following rates:
- 3x points on travel
- 2x points on dining
- 1x point on all other purchases
- $100 Annual Air Travel Credit to reimburse ticket purchases, seat upgrades, baggage fees or in-flight purchases
- $100 Annual Statement Credits for rides with Uber and Lyft
- Unlimited Boingo Wi-Fi access
- Complimentary membership to over 850 airport lounges, plus up to 15% off airport retailers
- $85 TSA Pre✓® credit to reimburse the application fee
- Metal card
- No foreign transaction fees
How Much Are Points Worth?
On the landing page it states two things that are useful for determining the points value:
- 50,000 points are worth $750 in air travel. I assume this means points are worth 1.5¢ each when using their travel protal
- Points transfer to airline partners. HSBC other cards transfer to: British Airways, Singapore Airlines & Cathay pacific and I assume this card is the same. They also sometimes offer a transfer bonus to British Airways.
To be eligible to apply for this card you need to have an existing HSBC Premier Banking relationship (similar to Chase’s Private Client status). Eligibility for that is discussed here but you need $100,000 in combined balances with HSBC to be eligible.
Rather than using Priority Pass like most other premium cards this gives you lounge access via LoungeKey. You receive two free lounge visits per year, additional visits cost $27 per visit per person. This is significantly worse than the other premium cards giving unlimited access and also guest access.
$100 Annual Statement Credits for rides with Uber and Lyft
You receive statement credit of up to a $20 per ride, up to $100 each year. Benefit is more flexible than what American Express offers on their Platinum card but obviously it’s for $100 instead of $200. The credit is based on a calendar year, so it is possible to double dip this benefit and only pay one annual fee.
$100 Air Travel Statement Credit
Similar to the Uber/Lyft benefit this is based on a calendar year. The $100 covers ticket purchases, seat upgrades, baggage fees or in-flight purchases. Should be relatively easy to maximize due to ticket purchases being covered.
This is a pretty weak premium offering, especially considering you need $100,000 in funds with HSBC to be eligible. If you do have that then it still probably makes sense to apply and get the card and then cancel before the second annual fee hits. In the first year you do get good value:
- 50k points from sign up bonus
- $200 in Uber/Lyft benefits (max it out for 2017 and 2018 and then cancel before second annual fee hits)
- $200 in air travel statement credits (again max it out for 2017 and 2018 and then cancel)
Let me know your thoughts on this new card in the comments below.
Hat tip to reader Xiao