Posted by William Charles on November 20, 2019
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Published on November 20th, 2019 | by William Charles

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[Rumor] Chase To Add Dining/Delivery Credit To Chase Sapphire Reserve, Increase Annual Fee To $550

Update 11/20/19: Apparently as part of the dining/delivery credit being added Chase is also considering increasing the annual fee to $550. Some links are already showing this $550 annual fee, but I believe those are part of tests Chase plans to run. The $550 annual fee source isn’t one of our normal sources, so I’m unsure how reliable this information is but think it’s credible enough to post.

Original post: According to a source familiar with the matter Chase is currently planning on adding a dining/delivery credit to the Chase Sapphire Reserve. This is in response to the Uber credit the American Express Platinum card offers (can also be used on UberEats) and the GrubHub credit the American Express Gold card offers. It isn’t clear how much the benefit will be or who the provider will be, but I would expect a monthly credit of anywhere from $10-$20 with $10 or $15 being the most likely. It also isn’t clear when this benefit would be introduced and if there will be any change to the annual fee or any of the other benefits on this card. When we know more we will be sure to share.



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Gigabyte
Gigabyte

Awesome! It’ll make the CSR even more valuable. Hopefully it becomes official.

Gigabyte
Gigabyte

Oh yes assuming Chase doesn’t raise the annual fee.

Lrdx
Lrdx

No. No way Chase will not rise the annual fee at the same time, beyond the dining credits. The card is already a loss leader, no change will happen that will result in more losses to the bank.

Charlie
Charlie

I don’t follow your logic. Raising the fee will reduce losses, not increase them. As it is, Chase has a lower fee for CSR than Amex and Citi do for their top-tier cards, so I don’t think they will lose customers over a fee increase (except possibly me).

Lrdx
Lrdx

Read what I wrote again. I will guarantee changes to CSR will result in a higher net fee than the current $150, after all the credits. I highly doubt they just give us dining credits for free.

Charlie
Charlie

Ahhh…. “no way Chase will not rise…” I missed your double negative.

Davy
Davy

This is their ticket to $550 or more for the fee.

ian
ian

Sometimes capitalism is a good thing.

Patrick
Patrick

How? They’ll increase the AF and breakage on this is probably 90%+?

Matthew

Hope they don’t raise the annual fee.

Froide
Froide

This; unless Chase adds perqs I’ll actually use that fully offset the fee increase and leave the effective AF at $150 (or less). For me, credits for ordering ahead/delivery/pickup services hold no value, but expanding the annual credit to reimburse general-dining-AND-travel expenses, in conjunction with an annual credit increase=AF increase, would be a win/win.

projectx
projectx

Assuming everything else stays the same, GREAT!

But the realist in me doesn’t want to see this happen. No way they are adding this and keeping the $300 travel credit intact with the $450 AF.

Hari
Hari

I too think Chase might reallocate $120 from Travel credit into this Restaurant benefit. I’d not like that happening 😐 The Delivery fees on these food delivery services are insane for single/small family members.

weiskel
weiskel

I just use the restaurant pickup option for the credits on my Amex Gold. No fees there. It’s more the micro-managing that bothers me. I live in a small town and most of the restaurants I actually like to eat at don’t partner with Grubhub etc. Once a month I can handle, but if the CSR goes the way of dining credits as well, I might actually ditch the Amex Gold. Which is of course exactly what Chase wants me to do.

Stephen
Stephen

Just be mindful that places like grub hub and door dash have increased item prices on top of the service fees, delivery fees, and tips.
For example, an Indian place near me, charges an extra $2 / entree when ordered through GH (delivery or pickup). Local Italian place is $1+/entree. Quickly eats away at the savings. Major chains and restaurants don’t seem to have that issue though.
This is all happening despite claims of not surcharging on food by the delivery services (mind you).

James
James

The restaurants have to pay a big slice of the food bill to the delivery services . Only way they can stay in business to upcharge the food

Eugene
Eugene

If only there was a benefit for said restaurants from using the platform….

Forest
Forest

Didn’t know you could pick up food and avoid fees

Charlie
Charlie

This would be disastrous for me. I don’t use food delivery services, so such a reallocation would, for me, be a $120 reduction in travel credits, nothing more. My personal business case for having the CSR would no longer make sense.

Gus
Gus

Same for me. CSR is the only card where I can’t directly offset the entire annual fee with an easily useable credit of some sort. So not open to an even further increased fee for dining credits that I won’t use. Just leave the darn card alone Chase.

Mat
Mat

DISASTROUS!

ExploreYourWorld
ExploreYourWorld

I’d rather not eat at a restaurant and would prefer to keep the travel credit. Especially since if it is a restaurant credit it will likely only apply to US restaurants and not as a general dining credit if they follow AMEX

Bill
Bill

Agreed if chase takes away from the travel credit for this or if the dining credit does not more than offset the AF increase i am going to have to rethink the card. Some restaurants jack up their menu prices on these delivery services plus the additional fees that get tacked on and required minimum spend etc it can end up being a net loss. A universal dining credit that is applied to any restaurant spend would be amazing though.

CongestionCharge
CongestionCharge

Agreed. I see them mirroring AMEX, $200 travel and $200 dining of some kind. Assuming it’s a pure dining anywhere credit I believe the math stays the same. The card still co$ts $150 after credits. I was lol/24 when the card came out so might PC my CSP to CSR before this increase.

Bill
Bill

I doubt we are going to get this for free. I bet chase wants to jack up the AF.

Brandon
Brandon

+1 I agree

Lc
Lc

Oh great.. devalue dining credits even more! Uber eats is now obsolete after the 15% service charge. Nobody in their right mind would use this service if they didn’t have these credits.

Jags
Jags

Yea Uber credit for Uber Eats sucks but the Seamless/Grubhub credit is good if you have a good selection. The Gold seamless credit is as good as cash to me.

LC
LC

true, i like the grubhub / seamless because you can pick up option w/o service charge.

Justin
Justin

For us at least, the new 15% ends up being about the same as before, depending on the restaurants.

Before, the close restaurants for us would have a $3.99 delivery fee and the ones slightly farther would have a $5.99 delivery fee. Now they all seem to have a $0.99 or $1.99 delivery fee. We ordered from a restaurant that used to have a $5.99 fee. The 15% charge was $4.42 and the delivery fee was $0.99. Lol so it was a little cheaper. Obviously just depends on the size of your order though.

AnameOfaguy
AnameOfaguy

Except Grubhub jacks up the price of items. Even with the credit, I’ve found most restaurants are cheaper to order from over the phone. Note: they used to claim prices weren’t different. They’ve since removed this language.

Stephen
Stephen

This can’t be overstated. ALL delivery services can have different prices for the actual food on top of service fees, delivery fees, and tips. It varies, and typically isn’t on major chains, but it happens all the time. Despite claims by the delivery companies to the contrary.

LNK
LNK

Uber has pickup option in my area

Dan - Legal Bank Robber
Dan - Legal Bank Robber

$550 AF imminent

Buenaventura
Buenaventura

The problem for Chase is that the Sapphire Reserve has to both compete with the Platinum and the Gold card. Chase could add a credit but then they’d have to likely increase the annual fee or decrease the travel credit.

Patrick
Patrick

The CSR is a better card than both. The dining bonus applies in pretty much all cases (instead of the hit and miss PRG) and the bonuses work outside the US.

Sebastian Chang
Sebastian Chang

just bump the current 3x to 4.5x and scratch those “credits”

Tom
Tom

This is bad, CSR has lower AF than Prestige or Plat so I expect they raise the annual fee by $100 which makes it a negative for most people as no way these credits are worth full face value.

danny
danny

yea not a fan of this move

aubergine
aubergine

Yes, but you can at least get a retention offer on Plat. And at least in the past Prestige potentially gave them out. But CSR pretty much no retention no matter how much you spend. So the effective fee – i suspect – is pretty close for all of them. (and you can get Prestige or Schwab plat for $350 if you put assets with their institutions, if you have a 401 or other account to roll over) CSR doesn’t have that reduced fee option either.

MoreSun
MoreSun

Zero doubt this means an addition to the annual fee. Aren’t they said to be losing money on this card? A pain in the ass to use benefit paid for up front is a nice way to keep more of that annual fee.

I’ve really liked this card because I feel Chase doesn’t play games with the benefits. $300 for travel automatically posted definitely fits my lifestyle. $10-$20 in food credits for delivery services use it or lose it style doesn’t. A $10-$20 dining credit for use at anything that codes dining I would fine with.

Siumen
Siumen

Can’t agree more. They either increase AF or convert the $300 travel credit into some kind of dining credit. I hope they don’t copy Amex and make it “monthly” credit applicable to “selective” options only. This would be such a stupid move.

Cinnabar
Cinnabar

Not to mention that I travel for work and often have very few/no seamless or grubhub availability. Even in my home town there are very limited options. My monthly credit on the Gold goes to waste about half the time. I love my CSR.

perfectviking
perfectviking

There is no way this doesn’t come without an AF increase. Any monthly credit greater than $10 means they lose money after the travel credits are spent.

Dawg
Dawg

Maybe they will drop the travel credit from $300 -> $2xx and in turn provide for dining credit for the difference.

Won
Won

The only compelling reason they might not increase the AF is that they’ve probably lost a lot of customers to the Amex Gold. They’ve lost me, and I spend hundreds per month on dining. I’m sure that there are many, many others in the same boat.

While I haven’t canceled the CSR yet, as my renewal date hasn’t come up yet, canceling has been on my mind a lot recently.

They do get a cut of each transaction, so they might be losing out on a small fortune. At least enough to make them consider adding a dining credit, if these rumors are indeed true.

Plus, Amex posted a healthy profit and is attacking Chase relentlessly. So Chase might lose more customers in the future. Hooray for competition!

VL
VL

I think you are wrong. Any spend on dining and travel at 3 points per dollar earning and redemption options up to 1.5 per point is a loss for Chase.
They will make money only on a non bonus spend or on people carrying the balance. So, the fact that you moved your dining expenses somewhere else is a plus for Chase.

Grant
Grant

RIP CSR

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