Posted by Chuck on August 16, 2016
Credit Card Benefits

Published on August 16th, 2016 | by Chuck

53

Chase Sapphire Reserve Will NOT Have the Infinite $100 Airfare Discount

Chase has clarified that the Sapphire Reserve card will not have the $100 airfare discount that typically comes with Infinite benefits.

Chase, interestingly, chose Thepointsguy as their medium to officially announce the Sapphire Reserve card. Over at thepointsguy, they’ve updated their post to reflect the fact that the Sapphire Reserve will not have the $100 airfare discount.

Update: Chase has clarified that some Visa Infinite perks, such as a $100 airfare discount, are not included with this card.

It will have other Infinite benefits like $100 Global Entry fee credit and primary rental car insurance.

To get the Infinite $100 airfare benefit, you’ll need one of the other Infinite cards: the new Ritz card or the CNB Infinite Visa card.

Hat tip to MG



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Lantean
Lantean

why would Chase pick the shadiest blogger? uh…

Trevor

Maybe based on their relationship with Bankrate?

Dukie02
Dukie02

It could mean that either 1) there’s a good chance this will not be under 5/24, since they are going after the points community, or 2) they are aiming at novice points users and rubbing it in the face of most of us. I think the latter, but pray for the former. 🙂

Jonathan
Jonathan

Hundreds of people over 5/24 have already gotten the card, though no one knows if that will continue…

Red
Red

Because he probably had most of the article already written, they have a close relationship, and they wanted to get something out quickly after the leak? They can spend this week finalizing the “real” press releases.

Kyle
Kyle

So….you get 1.5 cents per point, 3x on travel and dining, and a $100 net AF to differentiate it from the CSP. That extra perk was a major appeal for me. Pairing that with 1.5 cents/point would’ve been amazing, but it seems that may have been exactly what they were trying to avoid.

HORACE
HORACE

CSP has a $95 Annual Fee. Therefore, the net difference between the 2 is $55.00.

One has to decide whether the extra 1 UR point for travel and dining fits their spend pattern.

As Nate states below, it may be a churn and burn for many, while taking advantage of that extra $300 annual travel fee for the next year before downgrading again to the CSP.

I’m saddened but not surprised that they have omitted the Visa Infinite airfare discount on the card for if the card had it, what would be the reason for someone to get and hold the CSP card, other than perhaps not qualifying for the CSR??

Nate
Nate

After my initial despair, I agree that I will have to do some math next July to see if I am getting $55 of value/year out of that extra point on travel and dining. I will get 1050 extra points on my year of subway passes alone, so I suspect it will be close.

HORACE
HORACE

Agreed. I probably will downgrade my CSP to the FU and have my spouse continue as an AU on the downgraded card.

She will apply for the CSR (she is a Chase Private Client) but I don’t intend to be an AU as I don’t think in our situation it is cost effective – even if the CSR AU gets PR Select lounge access, I usually don’t fly unless accompanied by her so that’s not a necessity and since she has the Citi Prestige, whatever the CSR card provides is superfluous.

Since she is also a Citi Private Client, she likely will retain the Citi Prestige in perpetuity as she spends a great deal of $$ on Entertainment tix, such as theater tix, etc and no Chase card bonuses Entertainment.

In addition, another benefit not mentioned by many — probably because not many are so affected — is that the Citi Prestige permits refunds of Entertainment tix purchased with the card if you can’t make the performance due to illness or sother such difficulty (this the Premier card does not provide), so another reason to keep that card.

Like you, we will have all travel expenses transferred to this card from our Prestige — where we currently earn 3X to the CSP’s 2X — and I think that given our expenses — PATH train — NYC Subways — monthly parking — EZ Pass — while not even including EZ Pass, restaurant spend, airfare and hotels, will more than make up for the $55 difference.

Cheapblackdad
Cheapblackdad

Horace, that was a thoughtful analysis. Are things like parking, subway passes, even tolls, counting as travel on CSP/CSR?

Keeping both Prestige and CSR is a decision not many will
Make to do.

Ctownbin
Ctownbin

Guys- the CSR can possibly even be a net NEGATIVE annual fee, if you switch off every year between the CSP and CSR.

For instance- suppose I get the CSR now on Aug. 21. I get the $300 credit TWICE, and only pay the annual fee once- total is negative $150. Now, the common thinking is, that you only get it twice in the first year, after that you get it once for $450 so it’s an effective AF of $150. But that doesn’t have to be true. Let’s say in Aug. of 2017 I downgrade to the CSP. I pay $95 for the year. Then in Aug. of 2018, I switch BACK to the CSR. I STILL get the $300 credit for 2018, AND 2019… but I saved $355 in annual fees in the process!!

Assuming this strategy is possible on Chase’s end, it would only be worth keeping the CSR full-time if the extra point on travel/dining made up for $355 in AF, not the $55 you guys were talking about.

HORACE
HORACE

CBD — Yes, all those things count as travel on the Chase Sapphire Preferred (“CSP”) and Citi Prestige. Since the Chase Reserve uses the same “travel” definition as the CSP, then they should earn the 3X bonus multiplier. The only instances where this is may not always be the case is travel/transportation services provided by a government entity. Now, the PATH system and the NYC transit system and the EZ Pass system are governmental or quasi-governmental entities but they do qualify for the bonus. You may ask what’s the difference between those that qualify and those that don’t? It all comes down to how the “merchant” classifies itself. I have read that in some instances, such as a public parking lot, or I think the SunPass system in Florida, Visa codes them not as transportation, but rather as “governmental services” or “miscellaneous services.” In those cases I have read that no bonus is forthcoming, but that was the fault/doing of how they were set up. In the vast majority of situations I have read about public parking and the electronic toll system, or public transportation systems or with Amtrak, they code as travel/transportation and thus, are eligible would be eligible for the 3X multiplier. Yes, I know that I am one of the fortunate few with respect to the Prestige and likely Reserve or CSP, but for our purposes, given that Entertainment spend is non-bonused by the Chase or AMEX cards, and the fact that the Prestige also has that insurance element of tix purchased with it, makes it quite useful. In addition, as Citi Private Bank clients, the Prestige true OOP cost is less than the initial $450, in reality is diminishes to $100.00. Now, it was certainly easier to justify that OOP cost with the AAdavantage lounge access and the 1.6 cents per TY point, but since that is going away in 11 months, it still pays for itself — especially if the CSR does not convey more than its owner gaining admission to Priority Pass lounges — this is as yet unknown. In addition, having secured many TY points in the last year on both the Prestige card (which I do not have as I thought it not worth the extra cost to be an AU) and my Preferred card, having the Prestige card in the future will ensure better point redemption, for I am likely to… Read more »

Jeff

Ugh that is frustrating. I thought the CSR was going to be far and away the obvious choice. But between these two it is no longer as clear. For 2 roundtrip tickets, valuing Marriott points at 0.5 cpp (2x on travel) and Ultimate rewards at 1.5 cpp (3x on travel), the two tickets would need to cost at least $2857 for the CSR to give more value. But if you make a lot of other travel/dining purchases using this benefit once or twice a year might more easily wash out…

Ian
Ian

It may be cheaper to be a Costco member and get the Citi Costco credit card, where dining and travel is coded at 3x, plus gas at 4x.

Nate
Nate

Crap. This basically prevents the card from paying for itself going forward. Looks like this a 1 year churn and burn now.

Stvr
Stvr

The Points Guy is unreadable

Mark O
Mark O

He pumps the CSP more then anyone….

Ian
Ian

That’s why we have the DoctorOfCredit

Jana Miller

I don’t want anymore global entry!!! Please tell them to stop.

Red
Red

Haha, I agree. Ran out of family members to sign up for free.

Dave C
Dave C

Frankly, this wasn’t much use to me anyways. IF I’m paying for a domestic flight, it’s Southwest. If you’re buying enough round trip domestic flights to make $100 meaningful, you should be rethinking your strategy anyways.

Alex
Alex

I think most people where thinking of using this with JetBlue since they have relatively cheap flights. They usually run promotions with rates of $39 one way, which can be bought with the Infinite benefit, so for two people it would be a total of about $55 round trip.

Dave C
Dave C

Good point. JetBlue sucks out of MSY, plus only use for me would be their international destinations. $100 was only for domestic anyways.

Good point though

El Guapo
El Guapo

Too bad, but still a great bonus opportunity. 1k cash plus 2×300 travel -450 fee is still 1,150.

Eddy Cue
Eddy Cue

1K cash? You’re really selling the value of the card short

anthonyjh21
anthonyjh21

$1k bonus is the baseline. I prefer the way he worded it than when I read people claiming an arbitrary 2.1 or 3.4 cpp and give a pumped value of something like $2500. You’re not gaining $2.5k in cash. You’re getting $2.5k in spending power towards some form of travel.

Yes the Churning/MS community is heavily geared towards traveling. With that said it’s still YMMV. Over the last year and headed into at least next fall we’ll have very little usage of points. I’m earning at a high rate and can’t keep up with burning. Yes, good problem to have.

At some point it’s not this “WTF is he doing” reaction to cash in on some points and park it in high interest accounts or invest it or whatever. The value gained from these points comes down to how you find the best use for you and yours.

Peter
Peter

I don’t exactly trust TPG post.

But if true, would make this much less valuable long-term. Will now considering cancelling after year 1.

Completely stupid the Ritz gets the $100 credit and not the new high-end Reserve. Reserve is the TRAVEL card and has same AF. Ritz is a HOTEL card, so makes less sense for that to be the one with airfare discount…

HORACE
HORACE

Peter —

I’m with you. I would certainly “test” whether the CSR Visa Infinite discloses the $100.00 savings or not — after all, I believe people have to go to a special Visa Infinite web site and input some such things.

What if Chase says the CSR does not convey such benefit, but nonetheless, regardless of what Chase says, Visa Infiinte cards are set up to provide such benefit???

The proof will be in the pudding, but I would not foreclose the CSR not providing such benefit.

As conspiracy theorists and those not fond of the TPG may theorize, if the CSR provides all and more than the CSP card provides, and if its use can serve to lower the effective cost of the CSR even more, then that would undercut the CSP card!

And, from what I have read above, TPG is the biggest pumper of THAT card, so perhaps his stating that the $100 joint airfare benefit is not included in the CSR card, is an effort, to keep his steady stream of new CSP entrants flowing?

Only time will tel!

Lrdx
Lrdx

Considering the two current Infinite cards have an own URL for that portal, I highly doubt it. But, you’re right, have to try.

HORACE
HORACE

Did not know that they were card specific portals, thanks. Probably won’t work.

Paul
Paul

I’m not understanding the naysayers in this thread at all. After the $300 travel credit the Reserve will cost an extra $55 over the CSP. Simply spending $3666 on the card on either travel or dining covers that cost. Anything beyond that means a cardholder comes out ahead. On top of that all the URs a cardholder currently holds gets an instant $0.25 increase in guaranteed value without the hassle of locating award space if the URs are transferred to a FF program. For me that’s $600+ in increased guaranteed value. I will be applying ASAP.

HORACE
HORACE

Paul —

Thanks for figuring out the break-even point of the CSR — I think we will surpass that, and your point about UR redemption is well noted, especially since the Prestige is slated to drop from 1.6 cents or 1.33 cents to 1.25 cents/point.

Therefore, as between those 2 “super” cards, point redemption via UR will effectively be greater in about 11 months time — something to consider, as well as the better stable of point transfer partners.

Ian
Ian

“Now, the PATH system and the NYC transit system and the EZ Pass system are governmental or quasi-governmental entities but they do qualify for the bonus.”
This doesn’t make sense. There’s DP online that it is not coded as travel; as well as it is. Who’s right?

HORACE
HORACE

Which one is not coded as travel?

I will check whichever one you are referring to and get back to you, but to the best of my knowledge, they are all coded as travel.

I’ll also check the Prestige/Preferred combo to see if there is any difference.

Ian
Ian

Actually all. MBTA. Metrocard. EZpass. For CSP and Prestige. (Conflicting DP on ezpass; maybe depends on the state; no1 commented on NYPA.) Thx.

HORACE
HORACE

I think EZ Pass is state specific, but I will check the other ones and get back to you.

Have not used MBTA — I assume Massachussetts Bay Tunnel Authority?

HORACE
HORACE

OK.

I recently switched my PATH services from my Sapphire to the Premier but I still have months with the drop-down boxes clearly showing that the PATH earned the bonus for Travel on the Sapphire card.

With respect to the Premier card, I never have specifically calculated for each transaction whether or not they received the bonus, if the Premier designated them as travel related.

Nevertheless, the Premier noted that with respect to:

EZ Pass = Other Travel/Bridges and Road Tolls, Fees

MTA (NYC’s Subways & Buses) = Other Travel/Local Suburban Commuter Passenger Trans

Port Authority (PATH) = Other Travel/Local Suburban Commuter Passenger Trans

In addition, I also traveled to London and used the Premier card to load up my Oyster Card for travel on London’s Tube. This coded as:

LUL Ticket Machine Green Park (the name of the particular Tube station I loaded $$ at) GBR = Other Travel/Passenger Railways

My private parking company since I live in an urban area is coded as:

Vehicle Services Auto Parking Lots/Garages

as was another that I had used in Ft. Lauderdale.

Finally, Amtrak was coded as:

Other Travel/Passenger Railways,

and either a bus or train ticket that was purchased to take one into NYC from New Jersey on the New Jersey Transit System, was coded as the following:

NJT PABT 0901 NEWARK NJ = Other Travel/Local Suburban Commuter Passenger Trans

Now, as I have noted above, I have not specifically researched that the items above coded as Travel actually received the travel bonus from the Premier, but I have no reason to believe that they did not.

Further, the one instance where I can easily see a travel related expenditure for the Sapphire Preferred was for the PATH service, and that absolutely did received the travel bonus from Chase, and I see no reason whey since the Premier similarly identifies that as a travel related expense, it would not receive such a bonus.

I do believe, however, that certain states might categorize EZ Pass as miscellaneous government services, whereas others would categorize it as mine has above as Tolls, which is subject to a bonus multiplier under either the Sapphire Preferred or the Citi Premier.

I hope the above has been helpful.

Ian
Ian

Any reason WHY they’re saying CSR card will not have the $100 airfare discount, even though it’s an Infinite Visa?

William Charles

Visa features are opt in, not all cards carry the full suite of benefits. I guess Chase didn’t want to pay for that benefit/turned it off.

Nvtech
Nvtech

For me, the CSR without the $100 airfare discount is seriously a big flaw. I travel a lot for work but when I travel with my wife, seriously this $100 credit makes a lot of difference.
If the CSR have this benefit, then I am a keeper of CSR every year and CSR+Premier would be the perfect combo.

Matt
Matt

I don’t understand why everyone is upset about the $100 airfare credit. Aren’t most people who read this blog getting airfare with points and not cash? My understanding of how the credit works is that you have to pay cash for 2 tickets and then you get a $100 credit. If you book all of your flights with points, isn’t this a moot point?

Nvtech
Nvtech

I agree burning miles for free flights could be the prime focus. My point is more of for the people who take advantage of a cheap flight for status qualification on an airline. I talk about people who are also doing mileage runs coast to coast for those PQM’s.
Sometime, spending also makes sense and at those times this $100 credit makes more sense and if I could do a dirt cheap 2 round trip tickets..I am ahead of the game on the annual fee. And you are right…I keep those 100k points for a great First class flight to Europe or Asia.

Dave C
Dave C

Agreed. Even if I am paying, I’m paying for Southwest, with my Companion Pass, so this discount is a no-nevermind to me anyways.

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