dcsimg
Advertiser Disclosure
 
     
Please enter the text to be searched
As the COVID-19 pandemic continues to affect your life and finances, CardRatings will remain committed to providing timely information related to credit cards and personal finance topics via our coronavirus financial services resource page. Email editor@cardratings.com with specific questions.

Guide to the Chase Pay Yourself Back program

Chase Ultimate Rewards® points have long enjoyed cult status in the credit card travel rewards world. And, frankly, they've earned that status with excellent redemption options, extra value when redeemed through certain accounts or transferred to popular hotel and airline partners, and solid earning categories and opportunities. If you have travel rewards dreams, Ultimate Rewards points need a place in your plan.

But then COVID happened and travel dreams disappeared in a puff of smoke.

Knowing this, Chase rolled out the Pay Yourself Back program in May 2020. It allowed cardholders to redeem their Ultimate Rewards® points for numerous "everyday"-type purchases and not sacrifice the value of those points. Now, Chase has announced a continuation of the program as well as an expansion of eligible cards and purchases, arguably making Ultimate Rewards® points – and several of the cards that earn them – even more valuable. 

Basics of the Chase Pay Yourself Back feature

You can think of the Chase Pay Yourself back program as a kind of statement credit opportunity for specific purchases. Much like the Capital One® Venture® Rewards Credit Card allows you to redeem miles to erase travel purchases from your statement, the Chase Pay Yourself Back program allows you to redeem Ultimate Rewards® points to erase certain categories of purchases from your statement.

To take advantage of the offer, cardholders simply need to log into their account, navigate to the Pay Yourself Back portal and you'll see your eligible purchases listed alongside the number of points necessary to cover that purchase. Check the purchases you'd like to cover with Ultimate Rewards® points points and click "Continue" at the bottom to move the process forward.

Chase Pay Yourself Back

A couple of important rules to note:

1. You can only Pay Yourself Back for purchases made within the past 90 days. A small countdown number appears next to a purchase as your days to redeem for that purchase are running out.

2. You can only Pay Yourself Back for purchases in particular categories and those categories are dependent on the card you have. (Take a look at the categories that are eligible for Pay Yourself Back).

3. It could take 2-3 business days for the credit to appear on your account. It could take one or two billing cycles for those credits to appear on your monthly statement. Remember, you will still need to make at least your minimum monthly payment on your card.

What cards are eligible for Pay Yourself Back?

When Pay Yourself Back first hit the scene back in May, it was only available to Chase Sapphire Reserve® and Chase Sapphire Preferred® Card(This card is not currently available on CardRatings) cardholders. At the end of September, however, Chase announced an expansion of the program to some cards within the Ink family of small business cards as well as to the Freedom family of cash-back cards. All of these earn Ultimate Rewards® points even though several are marketed as "cash-back" cards.

One note, while Chase no longer accepts applications for the Ink Plus® business card, existing cardholders are also eligible for the Pay Yourself Back program.

Here are the details on still-available cards:

Chase Freedom Unlimited®

  • Earn a $200 cash back bonus (that's 20,000 points) after spending $500 in the first three months from opening an account.
  • Plus, earn 5% back on up to $12,000 spent at grocery stores (excluding Walmart and Target) in your first year. 
  • Earn 5% on travel purchased through Chase Ultimate Rewards®, 3% on dining at restaurants and on drugstore purchases, and 1.5% on all other purchases.
  • Points redeemed through the Pay Yourself Back program are worth 25% more.
  • No annual fee.
  • Read our full review of Chase Freedom Unlimited®.

Chase Freedom Flex℠

  • Earn 5% back (five points per $1 spent) on grocery store purchases (excluding Target and Walmart) up to $12,000 spent during your first year as a cardholder.
  • Earn a $200 cash back bonus (20,000 points) after spending $500 in the first three months from opening an account. 
  • Earn 5% cash back on up to $1,500 spent in categories that rotate quarterly (quarterly activation required).
  • Also, earn 5% cash back on travel purchased through Chase Ultimate Rewards® portal; 3% cash back at restaurants, including takeout and delivery, and at drugstores; and 1% back on your other eligible purchases.
  • Points redeemed through the Pay Yourself Back program are worth 25% more.
  • No annual fee.
  • Read our full Chase Freedom Flex℠ review.

Chase Sapphire Preferred® Card

(This card is not currently available on CardRatings)

  • Earn 80,000 bonus points, worth $1,000 in travel when redeemed through Chase Ultimate Rewards®, after spending $4,000 in the first three months from account opening. 
  • Earn two points per $1 on travel and dining at restaurants worldwide, and one point on all other purchases.
  • Earn five points per $1 spent with Lyft through March 2022.
  • Points redeemed for travel through the Ultimate Rewards® portal OR through the Pay Yourself Back program are worth 25% more.
  • No foreign transaction fees.
  • $95 annual fee
  • Read our full Chase Sapphire Preferred® Card review.
  • The information related to this credit card has been collected by CardRatings and has not been supplied or reviewed by the card issuer.

Chase Sapphire Reserve®

  • Earn 50,000 bonus points, worth $750 in travel through Chase Ultimate Rewards®, after spending $4,000 on purchases in the first three months from account opening. 
  • Receive a $300 credit each year to cover travel purchases. In response to COVID-19 canceling travel for many people, Chase expanded the credit to also cover grocery store and gas stations purchases through the end of 2020.
  • Earn three points on travel immediately after earning your $300 travel credit and earn three points on dining at restaurants. Earn one point per $1 spent on all other purchases.
  • Points redeemed for travel through Ultimate Rewards OR through the Pay Yourself Back program are worth 50% more.
  • No foreign transaction fees.
  • Access to 1,000+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select.
  • Up to $100 application fee credit for Global Entry or TSA Pre✔®.
  • Enjoy a complimentary Lyft Pink membership, a $199 minimum value.
  • $550 annual fee
  • Read our full Chase Sapphire Reserve® review.

Ink Business Preferred® Credit Card

  • Earn 100,000 bonus points, worth $1,250 toward travel when you redeem through Chase Ultimate Rewards®, after you spend $15,000 on purchases in the first three months from account opening.
  • Earn three points per $1 on the first $150,000 spent on travel and select business categories each account anniversary and one point on all other purchases with no limit to the amount you can earn.
  • Points redeemed for travel through Ultimate Rewards OR through the Pay Yourself Back program are worth 25% more.
  • No foreign transaction fees.
  • Employee cards at no additional cost.
  • $95 annual fee
  • Read our full Ink Business Preferred® Credit Card review.

Chase Pay Yourself Back categories

While all the cards above offer cardholders the option of Pay Yourself Back rewards redemption, the categories for which they offer it differ depending on your card.

FOR SAPPHIRE RESERVE® AND SAPPHIRE PREFERRED®

As mentioned above, points redeemed through Pay Yourself Back are worth the same as they would be if redeemed for travel through Ultimate Rewards, that is 50% more for Sapphire Reserve® cardholders and 25% more for Sapphire Preferred® cardholders. It has also been extended until April 30, 2021.

Categories for Pay Yourself Back include purchases at the following: 

  • grocery stores
  • home improvement stores
  • dining at restaurants (including takeout and delivery services)
  • contributions to eligible charitable organizations (list below)

FOR THE FREEDOM® FAMILY OF CARDS

Points redeemed via Pay Yourself Back through any of the Freedom cards – that is Freedom Flex℠, Freedom Unlimited® or Chase Freedom® (no longer accepting new applications) – are also worth 25% more when redeemed through the Pay Yourself Back program; however, these cards only have one eligible category:

  • contributions to eligible charitable organizations (list below)

If you are earning Ultimate Rewards® points on a Freedom® card, but also have one of the Sapphire® cards in your wallet, you can still transfer your Freedom points to your Sapphire card and then redeem through the Pay Yourself Back program under that Sapphire® family card for more options.

FOR INK BUSINESS PREFERRED® CREDIT CARD AND INK PLUS®

From Oct. 1, 2020, through the end of the year, Ultimate Rewards® points redeemed under these cards will be worth 25% more when redeemed for the following:

  • select online advertising
  • shipping purchases 
  • contributions made to eligible charitable organization (list below)

What charities are eligible for Chase Pay Yourself Back?

The current list of eligible charities includes:

  • American Red Cross
  • Equal Justice Initiative
  • Feeding America
  • Habitat for Humanity
  • International Medical Corporation
  • Leadership Education Fund
  • NAACP Legal Defense and Education Fund
  • National Urban League
  • Thurgood Marshall College Fund
  • United Negro College Fund
  • United Way
  • World Central Kitchen

Is Pay Yourself Back worth it?

Most people open Ultimate Rewards®-earning cards with travel dreams floating around in their heads. COVID-19 has, in many cases, put those dreams on hold. Meanwhile, everyday expenses have continued or, given all that time people are spending at home, even increased as home improvement projects, grocery purchases and takeout expenses have become even more frequent.

Yes, Pay Yourself Back is worth it since Chase is allowing people to redeem points for the same value as what you'd be getting when redeemed for travel.

There is, of course, nothing wrong with holding onto your points in anticipation of the day when travel can again take place, but if you're looking to save a little money on purchases you're making right now, you can rest assured that Chase Pay Yourself Back does offer solid value.

Comments
0 Comments

Be the first to comment!