Hilton launches first travel rewards debit card with Currensea: Is it any good?

Hotel giant Hilton, powered by travel debit card platform Currensea, has launched two new debit cards that allow you to accumulate rewards points like a credit card.

The cards are the first of their kind, as they are debit cards that work like a regular bank card and allow you to earn Hilton Honor rewards points.

Both cards have no annual fee and low foreign transaction fees.

We look at what the cards offer and how they compare to rewards card giants like American Express and Barclaycard, the latter with a Hilton Honors rewards credit card.

What do the cards offer?

Rob Burgess, of frequent flyer website Head for Points, said: ‘This is really something different.

‘A debit card that works like your bank-issued debit card, taking money from your bank account every time you make a transaction, except you earn Hilton Honors loyalty points with every purchase and pay just 0.5 percent or 0 percent when you transact in foreign currency.’

There are two versions: the Hilton Honors Debit Card, which has a £60 annual fee, and the Hilton Honors Plus Debit Card, which has a £150 annual fee.

The cards are linked to your existing current account (virtually all UK banks participate) and transactions are charged to it as if you were using your regular bank debit card.

Unlike most rewards cards, there is no APR as these are debit cards, not credit cards.

Both cards come with instant Hilton Elite status (More on this below) and a registration bonus.

Hilton Honors Plus Debit Card

For £150 a year, this card grants customers Hilton Honors Gold status for as long as they hold the card.

Gold status gives you free breakfast for two on every stay outside the US (valued at £30-£50 per day), daily food and beverage credits for stays within the US, and a room upgrade if available.

Typically, to earn Gold status you would need to complete at least 20 separate stays or stay 40 nights within the calendar year at participating Hilton Honors hotels or earn 75,000 base points to achieve Hilton Honors Gold status, unless you have an American Express Platinum Card.

There is a sign-up bonus of 12,000 Hilton Honors points if you apply by 30 November 2024. It is triggered by foreign currency spend and you must spend £2,500 in foreign currency in your first six months to receive the bonus.

A great advantage of this card is that it has no fees for foreign currency exchange.

Burgess says: ‘Hilton Honors debit cards work best when used outside the UK, where you can earn up to 4.5 Hilton Honors points for every £1 spent.

‘For UK spending (earning between 1 and 1.5 Hilton Honors points per £1) it’s more rewarding than a typical retailer’s cashback credit card, which typically rewards you with between 0.1 and 0.2 per cent of your spend.’

Head for Points values ​​a Hilton point at 0.33p.

Below is a breakdown of the Hilton Honors Plus Debit Card rewards earning rate:

• 1.5 Hilton Honors points for every £1 spent in the UK
• 3 Hilton Honors points for every £1 spent at Hilton properties in the UK
• 3 Hilton Honors points for every £1 spent in foreign currency
• 4.5 Hilton Honors points for every £1 spent at Hilton properties outside the UK

Burgess said: ‘If you and your partner spend five or more nights a year at Hilton Honors hotels, paying £150 in gold to get free breakfast during your stay is a good deal.’

Hilton Honors Debit Card

This card has a lower annual fee of £60, but comes with less attractive benefits than the Honors Plus.

The card grants cardholders Hilton Honors Silver status for as long as they hold the card.

Silver status includes benefits like 20 percent bonus points on purchases made directly with Hilton, 15 percent off spa treatment during all-inclusive stays, and a fifth night free on Hilton rewards stays.

There is a sign-up bonus of 3,500 Hilton Honors points if you apply by 30 November 2024. You must spend £1,000 in foreign currency in the first six months to receive the bonus.

The card comes with a low 0.5 percent foreign exchange fee on overseas spending.

Below is a breakdown of the Hilton Honors Debit Card rewards earning rate:

• 1 Hilton Honors point for every £1 spent in the UK
• 2 Hilton Honors points for every £1 spent at Hilton properties in the UK
• 2 Hilton Honors points for every £1 spent in foreign currency
• 3 Hilton Honors points for every £1 spent at Hilton properties outside the UK

Burgess said: ‘There’s nothing to get excited about in terms of benefits, although it’s clearly better than having no status at all.

‘The only exception would be if you were planning to redeem Hilton Honors points for five nights. Silver status activates “five nights for points of four” (all Silver, Gold and Diamond members get this), which could result in substantial savings on your reservation.’

Hilton Honors Basic Debit Cardholders can upgrade to the Plus Card at any time.

How do they compare to the Hilton Honors Barclaycard and other competitors?

Hilton Honors Barclaycard holders may also have debit cards issued by Currensea.

If you already have a Hilton Honors Barclaycard, which has been closed to new customers for six years, it’s probably not worth ditching it and switching to one of these cards now.

That’s because the Barclaycard is free, gives you more points for every UK spend (two for every £1) and gives you a gold card if you spend £10,000 a year.

Burgess said: ‘The Plus Debit Card is only worth getting if you don’t hit the £10,000 target for Gold and want the guaranteed status, which you get with the Plus Debit Card.

‘Still, you could arguably pay £150 for the Plus debit card to get Gold status, but continue to spend your UK money on the Barclaycard because you earn more.’

If you have an airline credit card, such as British Airways American Express, Barclaycard Avios, Virgin Atlantic Reward, the cashback offered by Hilton cards is not as valuable.

Head for Points values ​​a Hilton point at 0.33p, making 1 Hilton Honors point per £1 spent in the UK less valuable than 1 Avios or 1 Virgin point per £1 spent.

Burgess said: If you are currently paying £650 a year for the American Express Platinum card, partly “to get Hilton Honors Gold status”, you may now decide to switch and save.

‘It will also appeal to students, pensioners and other groups who may not have the £20,000 income required for an American Express card, for example.’