Greg recently put together a COVID-19 credit card enhancements ultimate guide. In our Frequent Miler on the Air episode that week, we talked about how Amex basically stole Chase’s lunch money in terms of response to the pandemic and Greg predicted that Chase probably would have to respond. In finally breaking his 2020 failed prediction streak, Greg was right: Chase is making some awesome changes for CSR and CSP holders that could be a great deal for many readers.
New perks for Sapphire cardholders for 2020
Chase has added some very intriguing perks for Sapphire cardholders this year.
Here are enhancements to the Chase Sapphire Reserve card:
- Redeem points at a value of 1.5 cents each towards a statement credit used to offset purchases at grocery stores, home improvement stores and dining establishments from May 31 through Sept. 30.
- Use any remaining balance from your $300 annual travel credit toward purchases at grocery stores and gas stations from June 1 through the end of the year (automatically applied)
- Renewal annual fee lowered to $450 after July 1 through 2020 (in place of the $100 credit some cardholders have received)
That is very interesting. First of all, it means that the $300 travel credit will be incredibly simple to use this year. I imagine most readers would organically spend more than $300 at grocery stores and gas stations from June 1st through the end of 2020. If you didn’t previously value that pretty close to face value, it would be hard to argue it much less than face now.
The ability to redeem points at 1.5c each to offset grocery, home improvement, and dining purchases is totally unprecedented. While I prefer to use my points for outsized value toward premium cabin travel, it is hard to ignore the opportunity cost of doing so with this limited-time opportunity to cash out for big value. I imagine that some readers will be thrilled to get excellent value out of points that are otherwise sitting dormant, particularly those will massive balances (Greg, are you listening?).
Chase Sapphire Preferred cardholders will be able to redeem points towards a statement credit used to offset purchases at grocery stores, home improvement stores and dining establishments from May 31 through Sept. 30 at a value of 1.25c per point.
Keep in mind that both cards currently offer bonus points on grocery store purchases (5x on the Sapphire Reserve and 3x on the Sapphire Preferred). See this post for a full list of COVID-19 credit card enhancements.
Bottom line
This is a big and swift response that seems directly aimed at competing with the enhancements that Amex enacted at the beginning of this month. I’m both surprised and impressed with Chase’s response. I imagine that many cardholders will find these improvements to be both positive and helpful. For CSR cardholders in particular, a reduced renewal fee (for those with upcoming renewals), the $60 DoorDash credit this year and next, and these added enhancements very much increase the value proposition of keeping the card for at least another year.
H/T: One Mile at a Time
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[…] More details about the above Sapphire Reserve and Sapphire Preferred enhancements can be found here and here. […]
[…] Chase has introduced a fantastic new benefit for Sapphire Preferred and Sapphire Reserve cardholders…. The basic idea is that you can exchange your Chase Ultimate Rewards points for statement credits against certain categories of purchases. For example, currently you can redeem points, at full travel value, to offset restaurant, grocery, food delivery, and home improvement store purchases. Here’s the link to use this feature yourself. […]
Do you guys know if I will lose the 5x on $1500 groceries if I cash out my UR on them?
My statement credits from using this feature have posted to my Sapphire Reserve account, but I have not lost the points earned on the associated purchases. I read that as confirmation that we continue to earn points on purchases that are “erased” with this feature.
“See this post for a full list of COVID-19 credit card enhancements.” missing link there?
Thanks! Fixed. There’s now a link to this post: https://frequentmiler.com/covid-credit-card-enhancements-ultimate-guide/
I have 200K points and am cashing out. I don’t like booking through portal (customer service received when AA cancelled a flight with $6K value explains why) and I haven’t made much use of points transfer. I will keep the card this year because of the fee reduction but was on the fence before the changes and was keeping only because of the inability to cash out points. I suspect I will be on the fence again….and maybe I should just cash out and cancel (but my Global Entry will be up for renewal soon and I need to use the benefit on other cards for my kids). A post on the rules of getting a Sapphire Reserve bonus would be great – my husband got it 4 years ago, cancelled a year later. Now if only they will extend the grocery bonus – we have been maxing that out with grocery shopping including gift cards where the grocery store gives bonus points on gift cards. And when will USBank step up?
[…] Wow: Chase responds with new COVID benefits on CSR and CSP […]
Nick, with the extra temp benefits, is it more beneficial to get the bonus for CSR than a CSP’s even at $550 AF?
Really depends on how much use you can make of the temp benefits. If you sit on 1 mil points you’re interested in cashing out than opening CSR makes more sense since you can potentially get extra $2.5k.
Agree. Those who have sizable UR balance and also have Inks, would be better off to cash out at least a portion of the balance when leisure travel is very uncertain even for 2021 – it all hinges on how the vaccines would work or the continuation of the Pandemic / recurrence in the usual Flu season…
Knowing what we have known now, I am much less optimistic to those who think by 2021 we would be all fine and ready to travel…
Just upgraded today. Going to get 1500 gift cards before June 1st. Then I have an amazing liqour store in a gas station, so will buy 300 bucks there to use the travel credit so it doesn’t get auto applied at the grocery store. Then another 1500 to Max out that months grocery 5x
My understanding is that auto application of credit starts June 1st
I am considering applying for the CSR in a couple of months. Is it safe to assume that I would still pay the $550 annual fee and that only renewals are getting the discounted $450 fee?
I don’t have a massive balance of UR; maybe close to 200K. I got to support family of four so will keep these for travel when the time comes. Won’t be able to accumulate more UR as Chase tighten up (biz) credit cards approvals.
Let me write an honest headline:
Chase introduced 5x points on grocery spending to keep CSR usage from plummeting. That was only partially successful, so Chase introduces another grocery bonus to keep CSR relevant.
One thing you have to give credit to Chase for, they are the best at coming up with ways to keep their cards on top of customers other cards.
I give the suits at Chase credit for a good idea, but it is not a “big” idea. It shifts a little spending at the margin, but the combination of the cliff dive in the quality of Chase’s customer service this year and the 0% APR offers by competitors means I am still going to cancel CSR as soon as the $550 AF returns. Heck, once 5x goes away in 2 months, even a $450 AF is going to be pretty unjustifiable.
If you can’t figure out how the AF just got completely nullified then you definitely should cancel. This just became a negative cost card.
If you want to keep CSR because of its benefits, thumbs up, but letting me redeem my points for 1.5 for groceries does not mean this just became a negative cost card, not even close. I already get redemptions that good by transferring to Hyatt.
I tend to keep cards that issuers pay me to hold (usually, sometimes I just cancel out of spite). I think we were lucky in that our CSR AF is due next month, if it had been due in April we probably would’ve downgraded.
Does this mean I’ll need to spend $1,800.00 in grocery stores in June in order to maximize the 5x promotion? (This assumes I’ve spent $0 towards my annual travel credit)
Yes, I guess so. First $300 would be written off and will not count towards 5x
I find Chase to be the least aggressive at customer retention offers. I do not care much for their CSR or CSP, or any of their business cards. UR program is overrated and overhyped. Customer Service is very average and will never throw you a bone even if you’re a big spender.
I think everyone would agree. Chase is no longer hiring “A list” customer service employees. CSRs are now argumentative instead of helpful. Chase no longer asks me to “rate” the CSR after a call. Even sending a secure message gets an infuriating response. A cancellation call to Chase never elicits “Gee, why?” as a response. Maybe Chase has decided to use their marketing dollars to cater to the MSers and give up on the rest of us.
Wonder if I can offset a purchase made on a Freedom card at 1.5 if I’m a CSR cardholder, or is it only for a purchase made on the CSR?
Wonder if I can offset a purchase made on a Freedom card at 1.5 if I have a CSR, or will it only work for a purchase made on a CSR?