💳 Capital on Tap: UK Business Owners Face Avios Conversion Changes
Hello and welcome to Smart With Points! I'm Jack, your host, and boy do I have some news for you today. Now, I don't usually get this excited about credit card changes, but this one affects quite a few of our UK business owner listeners, so I felt it was important to dive in. Plus, my coffee this morning was exceptionally strong, so you're getting the caffeinated version of me today!
Let's talk about Capital on Tap's free Avios plan changes. I've just received an important email from Capital on Tap that all free plan users should know about. Starting 4th June two thousand and twenty-five, the Avios conversion rate for free tier customers will change from the current 10:10 ratio, where 10 reward points equals 10 Avios, to a new 10:8 ratio, meaning 10 reward points will now equal 8 Avios.
This change takes effect in just two days for existing customers, representing a 20% reduction in Avios earning power for free customers. But before you panic, let's put this into perspective.
Even with the reduced conversion rate, Capital on Tap's free plan remains one of the best Avios-earning opportunities available to UK business owners. Here's why: The current free plan earning rate from June two thousand and twenty-five will be 0.8 Avios per pound spent, down from 1 Avios per pound. But remember, there's still no annual fee and no foreign transaction fees.
Let's compare this to other UK Avios-earning credit cards: The British Airways American Express offers 1.5 Avios per pound, but has foreign transaction fees and a 250 pounds annual fee. The American Express Gold Business offers 1 Avios per pound, also has foreign transaction fees, and costs 195 pounds annual fee after the first year.
When you factor in the annual fees, Capital on Tap's free offering still delivers exceptional value, especially for smaller businesses or those just starting their Avios journey. You'd need to spend 31,250 pounds annually on the British Airways Amex just for the extra Avios to offset that 250 pounds annual fee versus Capital on Tap's free rate.
Now, is the Pro Plan option worth considering? Capital on Tap is offering existing customers the chance to upgrade to their Pro plan for 199 pounds in the first year, normally 299 pounds, which maintains the 1:1 Avios conversion rate plus additional benefits.
The Pro plan benefits include 1 Avios per pound spent with a 1:1 conversion, Priority Pass Lounge access, and Radisson Rewards VIP status, which I'm personally a huge fan of. Whether this makes sense depends on your spending patterns. If you spend more than 2,500 pounds per year on the card, the Pro plan could pay for itself through the improved Avios rate alone.
As someone who holds two Capital on Tap business cards and has been recommending them consistently, I see this change as Capital on Tap maturing their business model rather than a significant devaluation. They've been incredibly generous offering 1 Avios per pound with no annual fee for so long.
The short notice is less than ideal – giving customers just two days to decide on the Pro upgrade isn't particularly customer-friendly. However, the fundamental value proposition remains strong.
So, what should you do? If you're already a Capital on Tap customer, review your annual spending to determine if the Pro upgrade makes financial sense. Remember that even the reduced rate still offers excellent value, and consider this alongside your other business credit card options.
If you don't have a Capital on Tap card yet, the free plan will still be one of the best no-fee Avios earners available. So apply now if you've been considering it.
This change reflects the evolving landscape of UK rewards credit cards. As American Express continues to dominate the premium space and traditional banks maintain their fee-based models, Capital on Tap's approach of offering genuine value at the free tier remains refreshing.
Even with the reduced conversion rate, earning 0.8 Avios per pound with no annual fee, no foreign transaction fees, and the flexibility of a business credit card makes this one of the standout products in the UK market.
Why it's still worth holding: Zero annual fee means no downside to keeping it in your wallet. It's an excellent backup card for international spending with no foreign exchange fees. It still offers a competitive Avios earning rate and is useful for business expenses where other cards don't offer bonuses.
The key is understanding where this fits in your broader points and miles strategy. For many business owners, this will continue to be their primary Avios earner, while others might use it as a complementary card alongside premium options like the American Express Platinum Business.
Capital on Tap has been consistently transparent about changes and generous with their offerings. This adjustment feels like a natural evolution rather than a betrayal of their customer base. For UK business owners looking to earn Avios, it remains an essential card to hold in two thousand and twenty-five, even if it's no longer the standout it once was.
Thank you all for listening to today's episode of Smart With Points. If you enjoyed this content, please do subscribe to our podcast on all major platforms or visit our website at smartwithpoints.co.uk. We've got plenty more tips and tricks coming your way to help you travel smarter using points and miles.
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