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Chase Devalues ‘Pay Yourself Back’ with Lower Redemption Rates

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Chase Devalues 'Pay Yourself Back'

Chase Devalues ‘Pay Yourself Back’ with Lower Redemption Rates

Chase’s Pay Yourself Back feature has been quite popular since it launched early in pandemic. With PYB, Chase Sapphire, Ink Business and Freedom cardholders can redeem Ultimate Rewards points to cover eligible purchases made over the last 90 days.

It was popular for good reason especially when categories such as groceries, would get you a 50% bonus with the Chase Sapphire Reserve card. That meant a value of 1.5 cents per point. But those days are now gone, and redemption rates have been slashed for the new year.

Let’s see the new categories and value you can get for your points, based on the Chase credit card that you have.

Pay Yourself Back Categories for Q1

  • Chase Sapphire Reserve categories and redemption value, as of January 1, 2023:
    • Points can be redeemed at 25% more value for purchase with gas stations, groceries, as well as towards the card’s annual fee through March 31, 2023
    • Points can be redeemed at 50% more for qualifying Charities through December 31, 2023
  • Chase Sapphire Preferred categories and redemption value, as of January 1, 2023:
    • Points can be redeemed at 1:1 value for purchase with gas stations and groceries through March 31, 2023
    • Points can be redeemed at 25% more for qualifying Charities through December 31, 2023
  • Chase Ink Business Preferred and Ink Plus categories and redemption value, as of January 1, 2023:
    • Cardmembers who utilize Pay Yourself Back can redeem points worth 25% more on business expenses related to internet, cable, phone services and shipping through March 31, 2023
  • Chase Ink Business Cash and Ink Unlimited categories and redemption value, as of January 1, 2023:
    • Cardmembers who utilize Pay Yourself Back can redeem points worth 10% more on internet, cable, phone services and shipping through March 31, 2023
  • FreedomFreedom Flex and Freedom Unlimited categories and redemption value, as of January 1, 2023:
    • Points are worth 25% more when donating to select charitable organizations

Conclusion

This will sting especially for Chase Sapphire Reserve cardholders. If you have this card then until now you would normally have some kind of useful category where you could redeem your points at a value of 1.5 cents each. Now Charities is the only category left with a 50% bonus.

The best use of Ultimate Rewards points was, and still is, through travel partners. You can often get a better value than 1.5cpp.

Let us know what you think!

Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.

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DDG
DDGhttp://dannydealguru.com
Based in NYC. Points/miles enthusiast for years and actively writing about it for the last 6+ years at Danny the Deal Guru. I'm always looking out for deals. Making a few bucks is always nice, but the traveling is by far the best part of this business.

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7 COMMENTS

  1. This weakens the value of CSR. I do t book via the portal since I do t get status benefits at Hyatt or Marriott if I use the portal. I will definitely downgrade to reserve at next renewal. The extra benefits added don’t justify 550 to me when I get some similar benefits from Amex plat.

  2. I’ve redeemed hundreds of thousands of Chase URs and have never once used PYB. I have always found better value transferring to partners. I can’t bring myself to wipe off a $50 dining charge with 3,333 points when those same number of points can nearly be a category 1 Hyatt stay (off peak), which probably retails for $150 with tax.
    The worse multipliers for PYB doesn’t change anything for me. I’ll keep utilizing transfer partners as usual.

  3. PYB 1.5cpp was the main reason I kept the reserve. Time to re-evaluate the value that I get for that annual fee vs. the preferred.

  4. The change narrows the incremental value proposition of the CSR. Prior to this change, I would have to find a pretty good reason to justify using a different card for certain things. Now, I would have to find a pretty good reason to justify using the CSR for certain things. In a way, it’s made my decisions easier.

    We’ll see what the Citi Strata Elite offers when it’s released. My sense is that Chase will have to rethink both Sapphire cards. More so with this devaluation.

  5. Agreed that it stings to lose the easy 1.5cpp PYB options on CSR. But holding the CSR still allows for the 50% uplift or 1.5cpp on travel booked through the Chase Travel portal, besides the 1.5cpp charity PYB. This option shouldn’t be left out of this article.

    This is how it was pre-pandemic anyway. However the CSR AF was $450 at the time and now it’s $550. That’s a fair reason to reconsider value of this card.

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