Now 2x/3x on groceries; stack with travel credit and Pay Yourself Back

17

New enhancements have been announced today to two of the most popular travel rewards credit cards: Starting on November 1, 2020 and running through April 30, 2021, the Chase Sapphire Preferred and Chase Sapphire Reserve cards will earn a temporary bonus on grocery store purchases. Additionally, the $300 Chase Sapphire Reserve travel credit will be applicable toward gas and grocery store purchases through June 30, 2021. This is all good news for Sapphire cardholders, though I can’t help but feel like this falls short of what I may have expected.

Chase Sapphire Reserve new benefits starting 11/1/20

Link to announcement

Beginning on November 1, 2020, the Chase Sapphire Reserve card will earn 3x on up to $1,000 in grocery store purchases per month through April 30, 2021. That’s six months with a maximum of 3,000 points earned each month.

Additionally, the $300 annual travel credit will be redeemable against gas and grocery purchases through June 30, 20201 (this has been extended as it was previously scheduled through the end of 2020 only).

Since we previously found that you would still earn points on purchases covered with the Pay Yourself Back feature, this means that you will still be able to earn 3x on a purchase and later use points to pay yourself back for that purchase – a double dip of sorts.

Chase Sapphire Preferred new benefits starting 11/1/20

Link to announcement

The Sapphire Preferred also picks up a grocery bonus, albeit 2x points rather than three, with the same $1,000 per month cap from November 1st through April 30, 2021.

As was previously announced, you can still use points to pay yourself back for grocery and home improvement purchases through April 30, 2021.

Quick Thoughts

More points beats fewer points, so from at least that standpoint this is obviously good news for cardholders.

On the other hand, with the Freedom Unlimited and Freedom Flex picking up 3x dining and 3x at drugstores recently, I had higher hopes for Chase’s premium and ultra-premium cards. I am somewhat surprised that they didn’t also offer a better bonus on dining or a more generous grocery bonus — whether valid on more spend or more points per dollar.

On the other hand, I suspect that Chase knows that customers who want to transfer points to travel partners are willing to pay some premium for that capability alone. Apparently, they didn’t think they needed spending bonuses to compete with their Freedom cards but rather wanted to offer a product that complements those cards and this fits the bill for many customers. Of course, those who have recently picked up a Freedom Flex or Freedom Unlimited are getting 5x on grocery store purchases on up to $12K in spend. I think it’s kind of awkward that Chase is offering less return and for a shorter time on the Sapphire cards.

Again, I’ll be happy to get some extra points at the grocery store, so this isn’t bad news at all. It just isn’t quite as much as we hoped to see out of Chase in response to other COVID credit card enhancements and in consideration of the changes they have otherwise made to their lineup.

H/T: Doctor of Credit

0 0 votes
Post Rating

Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

17 Comments
Inline Feedbacks
View all comments

[…] stores, the Freedom cards come with a limited-time first year bonus of 5x on up to $12K, and the Sapphire Reserve will now offer 3x on up to $1K per month through April 30, many of us are likely asking the question that is set to be facing me this week when my annual fee […]

Vacaman

Still love the old school AMEX Bluecash preferred 6% cash back on groceries ($6K cap).
Chase isn’t really showin the Love in my opinion but do like my sapphire for the primary insurance on rental cars though

Ella

I keep waiting for Chase to act like they want to retain ANY CSR cardholders. This is just another “No, they don’t” in my book.

Joseph N.

I agree. The 3x on groceries is nice, no doubt, but if the AF goes back to $550, 3x on groceries will not keep me from canceling.

Ed. C

Any idea if that will include WMT as it did in the promotion earlier this year?

[…] Grocery bonus November through April: Nov 1 through April 30 2021, earn 2X (Sapphire Preferred) or 3X (Sapphire Reserve) for grocery spend on up to $1K spend per month.  Details here. […]

Anthony

I also think that a lot of people are overrating the 5x grocery on up to 12K in spend for the Freedom and Freedom Flex… That’s a great offer, but for those that hold an Amex Gold, it is only an incremental 12,000 points a year (or $180 if you also have a CSR). Most CSR holders should have had both the Freedom cards years ago. They became much more valuable after the change, but no real need to use a sign up slot on them. The Freedom Unlimited 3% back sign up bonus on $20,000 in spend that they offered last year was more valuable because it could be used on unbounded spend.

Matt

June 30, 20201…… so the foreseeable future then?

Patty

I really hope it is before 20201! 😉

JoeH

I have 75k more UR points that I am interested in using for pay yourself back, and had a hard time getting there with dining out spend only. Only receiving 1x on groceries made it really hard to choose this category. But 3x and with the new $300 credit starting in December, I am going to do this spend. Not thrilled with the change like with the Freedom cards, but it works.

DSK

Unfortunately this is no help for those of us who have AMEX Gold and Sapphire Reserve. Kind of disappointing for those of us who are in the hobby for airline and hotel point transfers.

Josh

Sure sure, where you flying to right now? This is not disappointing, its smart of Chase given the current situation in our Country.

DSK

Let’s try that again. During a six week period this summer, I took four driving trips in the Northeast using a combination of Hyatt points (both Hyatt and SLH hotels) and a Hilton free night certificate, in each case getting great value and feeling quite safe.

I have had grocery bonuses for most of the year exceeding the value I would have received from my 4x Amex Gold card, so my AMEX Gold hasn’t been used that much so far this year. If Chase had 5x on my Sapphire Reserve (just like the 5x United points Chase gave me for grocery spend during the third quarter), it would get all of my grocery spending. But, I would take 4x AMEX MR points over 3x Ultimate Rewards points any day, which means Chase will get none of my grocery spend until a better Chase promotion comes along or until the $300 card renewal credit posts on my Sapphire Reserve card (and then only for $300).

Also I’m fine stockpiling points for when the world opens up again. When will that be–nobody knows–but I’m am hoping summer or at least fall 2021 will be better. In other words, where I’m flying right now is kind of irrelevant to me, but I understand that others may view it differently, and the debate of cash back vs. stockpiling points for later in 2021 has been written about extensively here on Frequent Miler and reasonable people can reach differing conclusions.

Josh

Yeah, it’s best we agree to disagree here. You’re way off here given the state of things. Safe travels though.

Matthew

I think 3x on grocery is better than 3x on another category that isn’t so easily maximized. I’m sure they’re seeing grocery spend being much higher than normal, and thus it will keep the Reserve card at the top of the wallet for most people. Since it stacks with 1.5 cpp redemptions, I’m quite happy. I do have the 5x with Freedom as well, but my year will extend beyond the end date for Reserve 3x. Now I hope grocery stores keep running discounts of gift cards of at least $1k a month, hehe.

Anthony

If Chase adds 3x/2x grocery to these cards on a permanent basis, they become competent competitors to an Amex setup (which relies on Amex Gold) and to a Citi setup (Double cash + Premier or Prestige, depending on how much you want to pay). But it really relies on how useful you find the particular transfer partners / redemption options / other card benefits. Chase clearly isn’t trying to win the battle of having the highest spend category multipliers…

Dan

Yeah, I got the Freedom’s 5% on groceries for the first year, so this will be redundant. Still, a great benefit for those who can’t get the Freedom cards new right now.