Posted by William Charles on July 1, 2016
Credit Cards

Published on July 1st, 2016 | by William Charles

13

Chase Zappos Cardholders Will Be Automatically Converted To Chase Freedom Unlimited On July 26th

In late May Chase stopped accepting applications on the Chase Zappos card, we weren’t sure what would happening to existing cardholders but now we do. Existing cardholders should have received a letter from Chase stating the following:

  • Zappos.com’s relationship with Chase ends on July 26th, 2016
  • They will send you a new Chase Freedom Unlimited card by the end of September
  • Continue to use your Zappos card until the Freedom Unlimited arrives, then use that card.
  • After September 26th, 2016 the Zappos card will become inactive.
  • All account details (e.g APR, credit limit and account age) will stay the same. Expiry date will change
  • Rewards program will remain unchanged until July 26th, 2016. Unredeemed rewards balance as well as any new points earned will automatically transfer to the Freedom Unlimited.
  • On July 27th, you’ll start earning rewards in line with the Freedom Unlimited (1.5x points on all purchases)

This is a nice upgrade in my opinon as the Zappos card only earned 3x points at Zappos and 1x everywhere else. The Freedom Unlimited earns 1.5x everywhere, with no annual fee and these points can be transferred to travel partners if you have a premium Chase card (e.g Chase Sapphire Preferred or Chase Ink Plus). Because the Freedom Unlimited is a Chase branded card, you should also be able to convert it to a regular Chase Freedom (no annual fee and rotating 5x categories). It’s also nice to see that unredeemed rewards will also be convert to the more valuable Chase Ultimate Rewards currency.

I wonder if another card issuer will be issuing a Zappos credit card.



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Ben
Ben

Not a big deal, but based on the article I think you have the date wrong in the title.

Nobody
Nobody

What if you buy a lot things from zappos (to earn 3x points) before the transition and return them afterwards (1.5x points deducted), assuming the reward points would be transferred to UR points 1:1? That will be a 1.5x net gain.

Matt
Matt

What are other Chase cards (in your opinion) that seem likely to be discontinued/converted to Freedom?

rubixx
rubixx

Fairmont

Matthew Watts

Biggest problem with the card is Zappos is still not well set up for any kind of gift card. You cannot check your gift card balance, it does not allow you to simply “Pay with Points” like Amazon does (the same company!), and you must hold onto a voucher code to use and not forget that you even have.

Probably for the best, because you can still redeem for Zappos gift cards, but it was still a mindset thing. You pull that card out to use it when you get the idea that Daddy needs a new pair of shoes… And then not again for the rest of the year 🙂

Zappos is still a great company. Just so long as they never take on the mindless “Prime” membership mentality of their stockholders.

CJ
CJ

If that were me I would be Po’ed.. the Chase Freedom Unlimited is worthless when compared to the Citi Double Cash or the Fidelity Amex/Visa (2x points). It sounds like the only good thing is that your points will transfer at a 1 to 1 ratio per the terms “All account details (e.g APR, credit limit and account age) will stay the same”. I wish they would do this to the Amazon Visa Signature owned by chase. This card is worthless now that amazon created their 5% store card… Thank You amazon for saying F*** Y** to your past card holders amazon…

You should be able to convert the unlimited into a Chase Freedom card though. So I guess that’s a +

Ctownbin
Ctownbin

I’m not sure why you say this. The Freedom Unlimited earns 1.5 miles per dollar spent. Even if you’re only getting 1.5 cpp (and many on here are often getting more), that makes it 2.25% cash back, and therefore better than both the Double Cash and Fidelity. In fact, the Freedom Unlimited is now the best card on the market for non-bonus spend (beating out the Everyday Preferred because you don’t need 30 purchases, and because of the better partners) and it’s not even close to anything else. The one exception might be the Discover Miles card since it’s 3% after doubling, but it’s only for the first year and the lack of a sign-up bonus, along with 5/24, makes it tough to justify signing up for.

John
John

will zappos card holders converting to chase freedom unlimited be eligible for the welcome bonus of $150 if you spend $500 in 3 months?

Chuck

No, not unless Chase sends you such an offer.

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