Huge Chase Sapphire Changes – Cash Out Points At Increased Rates
We have seen card lenders make some pretty amazing adjustments because of the Covid-19 pandemic. Amex adding new streaming credits and added lucrative grocery bonuses, Citi allowed people to cash out their travel credits for non travel items. Chase reduced the fee on the Sapphire Reserve for some. I think Chase realized that they were falling behind the other two some and just made some huge Sapphire card changes. They now allow you to cash out your points at the travel portal rates on certain items. There are also changes to the travel credit Let’s take a look.
RELATED: Why You Should Consider Cashing Out Your Ultimate Rewards Points, Now!
New Cashout Rates For Sapphire Cards
Here are the terms of the offer for the Sapphire Reserve:
With the Pay Yourself BackSM tool, your Ultimate Rewards® points are worth 50% more when you redeem them for statement credits against purchases in our current categories: grocery stores, dining (including restaurants, takeout, and eligible delivery services), and home improvement stores such as Home Depot® and Lowes®. Just choose an eligible purchase you made in the past 90 days, apply points for all or part of the purchase, and you’ll get a statement credit. Take advantage of this promotion through September 30, 2020. Learn More
Here are the terms of the offer for the Sapphire Preferred:
With the Pay Yourself BackSM tool, your Ultimate Rewards® points are worth 25% more when you redeem them for statement credits against purchases in our current categories: grocery stores, dining (including restaurants, takeout, and eligible delivery services), and home improvement stores such as Home Depot® and Lowes®. Just choose an eligible purchase you made in the past 90 days, apply points for all or part of the purchase, and you’ll get a statement credit. Take advantage of this promotion through September 30, 2020. Learn More
New Travel Credit Terms For Sapphire Reserve
Now enjoy more flexibility with your annual $300 Travel Credit. From June 1 through December 31, 2020, gas station and grocery store purchases will also count toward earning your Travel Credit. You’ll also earn points on these purchases (and, as always, after your first $300 in travel purchases, you’ll immediately start earning 3x points on travel). Learn More
Final Thoughts
These are some pretty amazing changes on Chase’s parts. You can essentially cash out all of your Ultimate Rewards points at the travel portal rates if you play it right. And with the cash like options you have in front of you it is like putting money in your pocket.
We will go over this in more detail later but I wanted to get the news out to you early and start off your Thursday morning with a welcomed smile!
Hat Tip Reader Stephen
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Mark, what if I DO NOT WANT my $300 travel credit to go towards groceries, etc? I love to travel alone, and when I do, I use up that travel credit on MY trips. My husband pays for OUR trips and I pay for mine. So it goes into my private fund for my travel. I do not work. (I finally received this years $300 credit back for four flights I had booked (and got cancelled) in Ukraine and Belarus! 🙂 )
I don’t think there is a way around it – it automatically triggers it. I would say pay for the groceries and then pull the $300 out you would have been spending and put it in a separate travel fund to be used later.
How will this work in June if we are getting 5x points for groceries? How can it count for travel credit and 5x’s points at the same time?
It probably won’t earn points on the travel credit since you don’t earn them when using them for travel. You could buy an airline gift card etc. to trigger it or prepay for an upcoming hotel sty etc. and then go grocery shopping.
Tino not every gift card form a retailer can be bought for 10% off. The main idea would be if you knew abiout a large purchase you wanted to make anyway. Or to buy grocery (the store itself) gift cards.
If they don’t keep the grocery around it would be nice for them to at least match the Citi Premier with 3x on gas.
I know it’s an unpopular ecosystem in this hobby but I’m serious thinking about moving to Citi setup even though they lack any useful travel protection.
Speaking strictly from an earnings perspective, I could do just as well, if not better with the Premier and Double Cash…for cheaper than the competition. And I could also through the Rewards+ is for good measure as it’d be perfect for my work/coffee vending machine habits.
Citi has become more compelling for sure. I don’t like their partners that much and them pulling the 1.25 cents portal option is another nail in the coffin for me. But if you can use the partners then it is a great option.
I would personally put MR above it and they have a great ecosystem. Chase has sadly fallen to third. They just don’t have a great set up for everyday spend. The Ink cards are their saving grace but they need to add gas or grocery somewhere long term for sure.
This is huge. Thanks Mark.
My pleasure Igor
How do I pay myself back? When does this start? I have Chase Ink and Chase Sapphire reserve. Thanks!!
I believe it starts May 31st I believe. Should be an option when logged into your account once it starts.
I suppose that more options are better than fewer but as a CSP holder this really doesn’t get my motor running. If I can’t get better than 1.25 cents per point in value with partners, I’m generally doing something wrong.
Yup much better news for CSR cardholders. I wouldn’t be surprised to see some people upgrade their CSP to CSR for this though.
As a moderate traveler with a family and huge grocery bill and a ton of UR points, this is pretty valuable to me. If you use Pay Yourself Back to credit a purchase, will you still get points for that purchase? (eg 5x for grocery in June)?
Funny thing is, if I’m able to use my points before renewal, this may create disincentive to renew CSR.
I am not sure. I would think you still earn them (outside of it triggering the travel credit). That is a great point on incentive to keep the card long term if people go all out on the redemptions.
CF, that is what I am already thinking – will I renew of I can burn through all my points? Now, if they extend grocery bonus beyond June 30, I am in.
Extending grocery would be nice 🙂
Nice to see them give another option. However as someone who wouldn’t part with my points for statement credit, it’s awesome that they aren’t giving folks the option.
HOWEVER, what’d be really nice is if they kept the 5x at grocery stores around long term…even if capped at $1,500 per month.
I think the best we could hope for is 3X on grocery long term. I would like to see grocery or gas added long term to one of the Sapphire products though. A big gaping hole in the Chase lineup imo.
Agreed, Mark. One weak spot in the Chase options. That’s why I just got the Amex Gold card. But now that I did that, it would be my luck CSR would add a grocery bonus! But still happy for their temporary changes!
Haha exactly. As you are ready to move on they pull you back some. Finally got the Amex Gold myself from a Platinum downgrade and excited to start racking up the MR points!
Any idea where the Pay Yourself Back tool is?
I don’t think they have added it yet. Not sure why they would add the terms before having it set up but hopefully it is added in there soon.
Grocery store spending is like cash. Anyone can liquidate their money for low cost through $500 Visa gift cards paying estimated taxes, for 1.2% for a gift card and 0.5% for the fee payment. Since I no longer do much office store MS to justify an Ink Plus, and am under 5/24, I may consider using my “transfer card” a CSP instead of Ink when the annual fee is due this summer, if this deal is ongoing until then.
That is a great option for sure.
“it is like putting money in your pocket” Actually, some of these changes have negative value. Why would anyone convert points to a retailer where you can buy their gift cards at 10% off? Then again, most credit card fans do not consider the opportunity cost of foregoing 2% cash when they decide to receive funny money instead.
I guess it all depends which route you take and how creative you are. It shouldn’t be too hard to get near cash value out of this…just gotta use your imagination a bit Tino.