Martin Lewis explains change to Tesco and Sainsbury's cards

The MoneySavingExpert revealed a partnership between Tesco Clubcard and Avios, British Airway's frequent flyers scheme, ended on January 18.

It means Tesco shoppers can no longer convert their Clubcard points into discounts on overseas flights.

But Sainsbury's has now partnered its Nectar Card loyalty scheme with Avios.

Martin Lewis speaking on ITV's This Morning

It launched on January 25..

After linking their Nectar and Avios accounts, Nectar Card holders can exchange points between the two, Martin said.

With international travel on hold due to the pandemic, Martin suggested Avios points could be exchanged for Nectar points.

"This could be useful with travel on hold for most, for the foreseeable future, as some may prefer to have Nectar points which can be spent now," he said.

• SEE ALSO: Martin Lewis' warning to shoppers who pay with cash

"It may also help those with cashflow problems to have the Nectar points to spend on grocery shopping at Sainsbury's."

Martin warned that the new scheme was less beneficial than Tesco's partnership with Avios.

He added: "Under the Tesco/Avios partnership, which ended on January 18, shoppers could convert Clubcard points to Avios at a higher rate of 250 points for 600 Avios - and you'd need to spend £250 at Tesco to get 250 Clubcard points.

"Now, if you spend £250 at Nectar-partnered retailers, such as Sainsbury's, and Argos, they'd typically only be worth the equivalent of 156.25 Avios - though you can often boost Nectar points using various promotions."

Nectar cardholders can now exchange loyalty points for Avios points

Martin said Avios collectors would see the most benefits from the scheme.

"However, the new scheme will be beneficial for Avios collectors who are loyal Sainsbury's or other Nectar partner shoppers who may not have previously earned via their grocery shopping.

"Plus, as we say above, you can convert points from Avios to Nectar, whereas you previously couldn't do so from Avios to Clubcard."

Tesco said the move was British Airways' decision but BA wouldn't confirm or deny this. 

Martin previously issued a warning to shoppers who rely on paying by cash.

Shops are legally allowed to refuse cash payment for items as long as they are not discriminating against the customer.

The issue was mentioned on the ITV's 'The Martin Lewis Money Show', where the discussion of legal tender was brought up.

Lewis responded to this saying: "No, they are not breaking any rules."

"You are allowed to take card only as long as it's not discriminatory for race or disability or something."