British Airways Visa Review

The British Airways Visa is aimed at frequent fliers on either British Airways or one of its partner airlines.  It currently includes a generous signup bonus to new U.S.-based cardholders in addition to waiving the first year’s annual membership fee ($95).  The card is issued by JPMorgan Chase.

British Airways Visa

New account holders who are approved for the British Airways Visa have the opportunity to earn 50,000 bonus Avios (British Airways rewards currency).  To qualify and receive the bonus, you must make at least $2,000 in eligible purchases on the card within the first three months that your account is active.  Purchases do not include cash advances, balance transfers, transactions for money orders, foreign currency, or traveler’s checks, or any fees.  Once you qualify, it may take between 6-8 weeks for the bonus points to post to your account.  Note: your account must be open and in good standing to receive the bonus Avios.  This offer is not available to current cardholders or cardholders who have received a new card member bonus in the past 24 months.  If you earn the 50,000 bonus Avios they can be redeemed for a round-trip economy class airline ticket from North America to Europe.

Card members earn Avios at the following rate:

  • 3X for every eligible $1 spent on British Airways purchases
  • 1X for every eligible $1 spent on all other purchases

Net purchases are defined as the total dollar transaction amounts minus any credits or returns.  The same limitations as stated above are applied when earning Avios.  Net purchases do not include:

  • Balance transfers
  • Cash advances
  • Cash-like transactions such as charges for traveler’s checks, money orders, or foreign currency
  • Any type of fee

There is no cap on the amount of Avios you can accumulate.

For big spenders, The British Airways Visa also offers the chance to double the value of earned Avios.  Each calendar year that you make at least $30,000 in purchases on the card you will earn a Travel Together Ticket (good for two years).  You can redeem your Avios for one reward seat for yourself and use your Travel Together Ticket for a companion to accompany you in the same cabin.  Taxes, fees, and carrier charges apply.  All travel must originate in the United States and return to the U.S.  Travel is only valid on British Airways flights (alliance airline flights are not permitted with the Travel Together Ticket).

Cardholders must be a member of the British Airways Executive Club programme.  If you are not already a member you will be automatically enrolled when you are approved for the British Airways Visa.  Avios earned through the card will be transferred to your Executive Club account.

Avios can be redeemed for domestic travel on American Airlines, US Airways, and Alaska Airlines.  They can also be used to book flights on alliance airline partners such as:

  • Airberlin
  • Cathay Pacific
  • Finnair
  • Iberia
  • Japan Airlines
  • LAN Airlines
  • Malaysia Airlines
  • Qantas
  • Qatar Airways
  • Royal Jordanian
  • S7 Airlines
  • Sri Lankan Airlines
  • TAM Airlines

Hub cities in the U.S. for airlines having the Avios program are New York (JFK), Dallas/Fort Worth (DFW), Chicago (ORD), Miami (MIA), and Los Angeles (LAX).

The Avios program has many transfer partners so it’s easy to add to your account from other rewards credit cards.  For example, it is possible to transfer points from the American Express Membership Rewards Card, the Chase Ultimate Rewards Card or the Starwood Preferred Guest card at a 1:1 ratio.

The annual percentage rate on purchases is 15.99% (variable tied to the Prime Rate).  This same rate, 15.99%, is also applied to balance transfers.  There is an additional balance transfer fee of either $5 or 3% of the total amount of each transfer (whichever is greater).

The British Airways Visa comes with Smart Chip Technology for added security.

Members are not charged foreign transaction fees when using the card outside of the U.S.

There is an annual membership fee of $95 which is waived for the first year.

The Facts

Below we have broken down the specifics of the British Airways Visa to help you determine if it’s the right card for you.

The Good:

Signup bonus:

New cardholders are eligible to receive 50,000 bonus Avios when you make at least $2,000 in eligible net purchases on the card within the first three months that your account is open.  Note:  This offer is not open to anyone who has received a card member bonus within the last 24 months.

Net purchases are the total amount of transactions minus any credits and returns.  Balance transfers and cash advances as well as other specific charges are excluded.

The 50,000 Avios can be redeemed for a round-trip economy class airline ticket from North America to Europe.

Numerous transfer partners:

Other rewards credit cards partner with the Avios program and allow members to transfer points at a 1:1 ratio.  This is a great perk which makes it easy to top off your account.

Simple rewards program:

Card members earn Avios at the following rate:

  • 3X for every eligible $1 spent on British Airways purchases
  • 1X for every eligible $1 spent on all other purchases

Travel Together Ticket:

If you spend at least $30,000 on the card in a calendar year you will earn a companion ticket called the Travel Together Ticket.  This voucher is good for two years and has some restrictions:

  • You must redeem your Avios for one reward seat for yourself and use your Travel Together Ticket for a companion.
  • Your companion must accompany you in the same cabin.
  • Taxes, fees, and carrier charges apply.
  • All travel must originate in the United States and return to the U.S.
  • Travel is only valid on British Airways flights (alliance airline flights are not permitted with the Travel Together Ticket).

No cap on Avios:

There is no limit on the amount of Avios you can accumulate in the program.

Reasonable Avios redemptions:

Members can use Avios to fly domestically on American Airlines, US Airways, and Alaska Airlines.  Cardholders can also travel on Aer Lingus and AirBerlin on transatlantic flights and avoid the high British Airways fuel surcharges.  For example, Boston to Dublin is 12,500 Avios one-way in economy or 25,000 Avios one-way business class.  Travel is also available to and within South America on LAN (again with no fuel surcharges).  Miami to Lima, Peru, is 12,500 Avios one-way economy class or 25,000 Avios one-way in business.

No foreign transaction fees:

Members are not charged any foreign transaction fees when using the card outside of the U.S.

The Bad:

Annual fee:

There is an annual fee of $95 which is waived for the first year of membership.

Not everyone will qualify:

Generally, a very good to excellent credit score (750+) is needed to obtain this card.  Chase discloses that based on a review of your credit, you may receive a Visa Signature Card or Visa Platinum Card with different costs and benefits.  Some applicants may not receive any card.

The Ugly:

Fuel surcharges:

British Airways flights charge hefty fuel surcharges.  Even when you redeem Avios for a ticket, you are responsible for any taxes, fees, and carrier charges.  Currently, a round-trip ticket between North America and Europe in a premium cabin would generate around $850 in fuel surcharges per person on British Airways, American Airlines, US Airways, or Iberia.  Note:  The better value for long-haul travel is for flights to South America (no fuel surcharges) or flights within Asia (which has relatively low surcharges).

Each leg of trip calculated separately:

This aspect is especially annoying if you don’t live near a hub city.  For example, if you want to fly from San Francisco to Honolulu, you have to stop in Los Angeles first. So San Francisco to Los Angeles is 4,500 Avios and Los Angeles to Honolulu is 12,500 Avios.  Ultimately, a round-trip ticket in economy would require 34,000 Avios.