HSBC Premier World Mastercard Credit Card Review

Full Review of HSBC Premier World Mastercard Credit Card

Pros Explained

• Decent introductory offer: You can earn 35,000 rewards program bonus points as a new cardholder of the HSBC Premier World Mastercard, provided that you spend $3,000 in the first three months after opening an account. Given the value of HSBC points, that reward is worth about $490 when it's used to redeem airline tickets through HSBC, or $400 for all other redemptions, including cash back. That's a very competitive offer. 
• Travel-friendly benefits: The HSBC Premier World Mastercard offers a respectable array of travel benefits, especially for a card with no annual fee for cardholders who are existing HSBC Premier account customers. Notable benefits include free Wi-Fi around the world with Boingo, $1 million in travel insurance coverage, and a 10% discount on Agoda, Expedia, and onefinestay hotel or vacation home purchases. HSBC also offers an $85 credit every five years for TSA Precheck.
• Cellphone protection: You’ll get up to $600 in protection for your cellphone subject to a $50 deductible if you use the HSBC Premier World Mastercard to pay your monthly phone bill. Theft is covered, but an unexplained loss of the phone is not. Eligible damage is that which affects the phone’s functionality. Repairs for cosmetic reasons alone or due to abuse or what’s deemed to be normal wear and tear aren't covered. This is secondary coverage that kicks in after you’ve received the benefits from any coverage that your insurance policies provide.

Cons Explained

• Requires a qualifying HSBC account, at least initially: You must be an HSBC Premier customer to get this card and the requirements are demanding. You must either maintain a combined balance of at least $75,000 in personal accounts and investment balances, direct deposit at least $5,000 into the account every month or hold a mortgage with an original principal balance of at least $500,000. You can drop this account qualification by closing an account or reducing its balance after you receive the card, but you must then begin to pay a $95 annual fee.
• Restrictive redemption program: HSBC provides multiple options for redeeming points, but most of them involve using HSBC's rewards portal. A notable exception is HSBC’s Rewards for Miles program which allows you to transfer points to a participating airline’s frequent flyer/reward program account. 

Who This Card Is Best For

The HSBC Premier World Mastercard is best suited for high net worth households because you must maintain a significant account balance, make hefty direct deposits, or hold a mortgage with the bank to qualify. You’re free to drop the qualifying account or reduce its balance after you get the card, but you must then begin to pay a $95 annual fee.  

Features such as free Boingo in-flight Wi-Fi, a TSA Precheck credit, car rental insurance coverage, and the absence of a foreign transaction fee also make the HSBC Premier World Mastercard a decent fit for those who travel frequently. 

The card has appeal if you have no insurance on your cellphone because it extends $600 in coverage if you pay your cellphone bill with the card. But there are caveats to the protection. It covers a total loss only if the phone is stolen, but it still offers peace of mind about the most valuable item most of us carry around with us. 

HSBC Premier World Mastercard One-Time Offer

New cardholders have an opportunity to earn 35,000 reward points after spending at least $3,000 in eligible purchases within the first three months after opening an account. The bonus points will post four to six weeks after the promotional period has ended.

We value this offer at about $490 when it's used to buy airline tickets from HSBC, or at $400 for all other redemptions, including cash back.

Rewards Earning Details

Cardholders earn two points per dollar on travel purchases. All other purchases on the card earn one point per dollar spent. There's no limit on the number of points that can be earned in a year and points don't expire.

HSBC's definition of travel purchases is fairly broad. It includes airlines, hotels, motels, travel agencies, tour operators, cruises, buses, car rentals, boat rentals, motor home rentals, campgrounds, parking, trains, bridge and road fees and tolls, ferries, limousines, and taxis.

Any points earned from eligible purchases are posted to your HSBC account within one to two billing cycles after the purchase is made.

Rewards Redemption Details

You can redeem points through the Premier program in several ways: 

• Cash back as a statement credit or a direct deposit to an HSBC Premier checking or savings account
• Travel, including flights, hotels, car rentals, and travel packages
• Merchandise from hundreds of brands
• Gift cards for travel, shopping, and more  
• CharityChoice Gift Card to one of more than 1,000 charitable organizations

All redemptions must be made through the HSBC rewards portal. Points are redeemed for a value of one cent for all redemptions except travel, which offers more favorable rates than the average of 1.4 cents per point. Redeeming 16,000 points earns you a $200 travel credit (a value of 1.25 cents per point) while 26,667 points and 40,000 points earn $400 and $600 respectively (1.5 cents per point). 

Transferring Points

You can’t transfer points from your HSBC Premier World Mastercard account to any other person or program. 

How to Maximize Your Rewards

Making the most of this card begins with ensuring that you meet the $3,000 spending requirement to earn its 35,000-point one-time offer within the first three months. Doing so should get you enough points to pay for a roundtrip economy seat on a domestic route.

Consider using the card for travel-related purchases to earn two points per dollar spent. The eligible purchases for the category are broad. They include flights, hotels, car rentals, taxis, ride shares, and more. Ideally, you should redeem the points for travel purchases, too. That option provides the most value, earning an average of nearly three cents per point.

Taking advantage of extras such as free Boingo in-flight Wi-Fi and the fee credit against PreCheck ($85 every four years) helps travelers get the most out of this card. You can use it for other purchases, too, but these earn half as much, just one point per dollar spent, so they're less lucrative, especially when they're redeemed for anything except travel.

Here are two spending scenarios of what you might earn by using the HSBC Premier World Mastercard. 

Average case 

Let's say you use this card only to travel once a year. We’ll assume you purchase a single round trip domestic flight that costs $378. This was the average price of a domestic flight in 2022, according to the Bureau of Transportation Statistics. You stay five nights in a hotel that costs you $150 per night.

You'd earn 1,993 points overall with this card, which we value at $27.90 when redeemed for travel purchases and $19.93 for other options, including cash back.

Aspirational case

Let's say that three family members join you on the trip. You purchase four round trip domestic economy class tickets and share a $200-a-night hotel suite for five nights. You spend an additional $1,500 on travel purchases throughout the year on a mix of attractions, tours, ferries, and other costs that qualify for two reward points per dollar on this card.

You'd spend $3,704 and earn 7,416 points overall. We value those rewards at $103.82 when redeemed for travel and $74.16 for other uses. Again, that's without considering the one point per dollar you would earn on other purchases with this card.

HSBC Premier World Mastercard's Outstanding Benefits

• 10% off at Expedia, Agoda, and Onefinestay
• Complimentary Wi-Fi access around the world with Boingo
• $85 statement credit every four years for TSAPrecheck
• $1 million in travel accident insurance
• Trip cancellation/trip interruption insurance

Standard Benefits

• Mastercard ID theft protection
• Tap & Go contactless payment
• Cellular wireless phone protection

Cardholder Experience

HSBC earned a below-average score in the J.D. Power 2021 U.S. Credit Card Satisfaction Study. It ranked fifteenth out of 16 regional credit card issuers. It ranked last, fourteenth out of 14 midsize issuers, in J.D. Power's 2022 study.

Customers can contact an HSBC representative about their Mastercard at 888-662-4722 or report a lost or stolen card 24/7 at 800-462-1874. Customer service can also be reached by visiting a branch, writing to HSBC, or tweeting questions and comments to @HSBC_US.

Security Features

HSBC offers industry-standard security features with this card, including 24/7 fraud monitoring and alerts, zero fraud liability for unauthorized transactions, and chip technology. Cardholders also have access to Mastercard's ID theft protection, identity fraud expense reimbursement, and cellular wireless telephone protection.

Final Verdict

The HSBC Premier World Mastercard offers decent rewards, solid benefits, and a one-time offer that’s worth between $400 and about $500, depending on how it’s redeemed. With no annual fee, the card’s a natural choice for those who hold a mortgage, keep a high account balance, or make hefty direct deposits with HSBC. In fact, you must meet at least one of these requirements to get the card.

You can drop the requirement after you get the card, but you’re then required to pay a $95 annual fee. Paying the fee makes the card a dubious value. You would have to spend roughly $3,500 a year on travel purchases and redeem them for travel to fully justify the fee. You could do as well or better with other cards that charge the same $95 fee or less.