Chase Announces Major Temporary Benefits On Sapphire Reserve/ Preferred ‘Pay Yourself Back’ (1.5 Cents Cashout; Easy Travel Credit; $450 Renewal)

[Update 5/31/20: The Pay Yourself Back 1.5 feature is now live. Works to reimburse purchases from past 90 days. You don’t lose any points on the purchase when using this feature; it’s just an additional statement credit.]

Chase announced exciting new (temporary) benefits for the Sapphire Reserve and Preferred cards, including a 1.5/1.25 cents-per-point cashout option to offset select charges, easy $300 travel credit usage, and a lower $450 annual fee renewal.

Sapphire Reserve Link | Sapphire Preferred link | Press Release

1.5/1.25 Pay Yourself Back

Direct Link (login required)

Chase has added a new way to cash out points for a statement credit at 1.5/1.25 cents per point on the Reserve/Preferred, respectively. Previously, you needed to book travel through Chase to get the 1.5/1.25 option.

Valid from May 31 through September 30, they’ve added additional categories for a simple statement credit to offset purchases in these categories:

  • Grocery Stores
  • Dining (includes restaurants, takeout, and eligible delivery services)
  • Home improvement stores, such as Home Depot and Lowes
  • Select charitable organizations, including: Feeding America, World Central Kitchen, Habitat for Humanity, Equal Justice Initiative, Leadership Conference Education Fund, NAACP Legal Defense and Educational Fund, National Urban League, Thurgood Marshall College Fund, United Negro College Fund, International Medical Corps, American Red Cross, and United Way.

Statement credit will post within 3 business days.

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.

$300 Credit Options

The Sapphire Reserve card gets an annual $300 travel credit which offsets travel purchases. From June through December, they’ve added other categories whose purchases get offset as well, up to $300:

  • Grocery Store
  • Gas Stations

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).

(It’s interesting that if you use the credit for travel purchases you will NOT earn points on the $300 purchase – a change Chase made years back to stop those $300 from earning points – whereas if you use the credit on grocery/gas you WILL earn points on those $300. See this follow-up blog post where we discuss this point further.)

Lower $450 Annual Fee

Chase had previously announced that there would be a $100 credit after the $550 annual fee posts on the Sapphire Reserve card for cardholders who have a renewed card year from April 1 – July 1. They’ve now added that card members with a renewal from July 1 through the end of 2020 will simply have a lower $450 annual fee. 

(No change or new benefit for Sapphire Preferred.)

Other Benefits

Other benefits, previously announced:

Final Thoughts

Major benefits here. A lot of people have huge stashes of Ultimate Rewards points, and – with not much travel happening – might jump at the change of cashing them out of 1.5 cents per point. In fact, I can see many people upgrading/applying to the Sapphire Reserve just for this benefit.

I assume the lower annual fee will only apply to renewals; new cardholders will likely remain at $550. (Unclear what the annual fee will be for those who upgrade an existing Sapphire card; one report is that it’ll be $550.) The other benefits, such as 1.5 cashout and expanded travel credit options, will apply to existing cardholders as well.

There are lots of people, as well, who value the points more than 1.5 and won’t be interested in the new cashout option. Regardless, the easier Travel Credit option and the lower annual fee is really interesting news.

With this news, especially the 1.5 cashout option, I think I’d give Chase the medal for best modifications due to coronavirus, though it needs more analysis, to be honest.

Follow-up Posts:

493
Leave a Reply

avatar
 

  Subscribe  
newest oldest most voted
Notify of
Dave
Dave

Hmm… 80K CSP just went public, and this offer ends before anyone who applied for the 80K offer will get their card, even if auto-approved. Interesting.

Pete
Pete

Does this work on ink business plus?

Ed
Ed

Why does spending on Costco not eligible as grocery? Has anyone done “pay yourself back” for Costco expenses on food and groceries. If so, how did you do that? Pls advise, thanks!

Celia
Celia

Costco codes as a warehouse, not grocery.

William
William

Anyone tried to use ‘pay yourself back’ before your statement was posted, did you still earn the points from the purchases as expected?

Avi
Avi

William Yes, you still earn the points as expected.

gbpack
gbpack

Does Best Buy count as a home improvement store for getting 1.5 credit?

Gaurav
Gaurav

Has anyone come across the problem of the “Confirm & Submit” button being grayed out at the end of th redemption process? Shows all my eligible charges and allows me to select max points but can’t complete redemption.

rob
rob

could cash payout result in 1099 from chase?

cuartin
cuartin

*#QUESTION* 1- Do you know any grocery store or home improvement stores that sell DIGITALLY (online) any gift card? specially if they are Amazon or Visa Gift Cards (GF). I am stranded abroad, worst case: 2- any grocery or home improvement store in which I can place order online and they will ship out the gift card or order for pick up? Thanks

Tanya
Tanya

If I product change from Freedom or CSP to the CSR in August, would I be able to “Pay Myself Back” for purchases made now at that future 1.5 cent rate? There’s a 90 days prior rule, but has anyone done a recent product change to CSR and gotten the 1.5 cent rate on purchases made on other cards prior to upgrading? I haven’t seen anyone posting about that yet, but maybe I overlooked it.

Tanya
Tanya

What I’m asking is – you can cash out your existing points, this offer isn’t just for purchases made on the card going forward?

Eric
Eric

Yes you can. I and others discussed this. It may have been in a different DoC article though.

ORLien
ORLien

Confirming this DP – just PC’d a freedom to a CSR, and I earned 5x on bonused freedom purchases prior to the switch and am able to pay myself back for those purchases made on the freedom now that it’d showing as a CSR online.

CM

Yes, I just PC’ed a couple of CFs to CSRs, and was able to redeem the points at the 1.5x rate right away against the older purchases made whilst the card was still a CF.

Note that you can only redeem against each purchase once, it’s very explicit in the interface, and there’s probably no way around it, so, if you’ve got like half-a-mil of UR points, you gotta get 7.5k worth of groceries to deem all that stash! (It lets you do partial redemptions, but the interface suggests that the purchase gets spent entirely even if you do it partial, so, partial redemption, if you’re still about to move the points between the accounts and such, wouldn’t be recommended.)

Eric
Eric

I was wondering if they would let you apply points more than once to a purchase so I guess you were the guinea pig. So you now have 2 CSRs? Are you planning on paying the $550 annual fee on both?

Yu
Yu

Do we still earn 5x points if I pay the grocery spending via my CSR points in June?

Eric
Eric

Yes.

Yu
Yu

Thank you Eric and Chuck. I assume it doesn’t matter if I pay with CSR points before or after the statement comes out and I always get 5x points this months for the first $1,500 grocery purchase, right?

Eric
Eric

I would wait for the statement to post to be safe. So far I’ve only applied my UR points to purchases like that.