With travel largely on hold, Chase rolled out a great new way to use your Ultimate Rewards points: Pay Yourself Back.
It works like this: Put select purchases on your Chase Sapphire Preferred Card or Chase Sapphire Reserve, and you’ll be able to cover those expenses using your Chase points through Sept. 30, 2020 – getting the same bonus you get as when you use points to book travel through the Chase portal. It works at grocery stores, home improvement stores, and restaurants.
But after multiple tests, we can confirm there’s at least one other favorite retailer that works, too. Yes, it seems you can also use Chase points to pay yourself back for any and all purchases at Target.
Testing Out Target
Several members of our team recently headed to one of America’s favorite supermarkets to give it a whirl, putting a Target purchase on a Chase Sapphire card.
After my Target run, I logged into my Chase account and headed to the rewards portal, navigating to the new Pay Yourself Back function.
Sure enough, there it was: My $36.71 Target purchase was eligible to be covered with Chase points using Pay Yourself Back. Because I’ve got the Chase Sapphire Preferred Card, each point is worth 1.25. That means I could cover the entire transaction with 2,936 points.
With the Chase Sapphire Reserve, each point is worth 1.5 cents – so you could wipe out this same $36.71 charge with just 2,447 points.
And remember, you don’t have to cover the entire purchase with points. You can choose to wipe out just part of the transaction with Chase points.
Most Target stores sell groceries, so perhaps this is obvious. Still, it’s great to see yet another way to redeem Chase points at a time when few are burning points for travel.
It’s unclear if other similar retailers like Walmart are also eligible for Pay Yourself Back. Unfortunately, it appears that Costco purchases do not qualify.
How to Earn Chase Ultimate Rewards Points
There are many methods and credit cards that will help you earn Ultimate Rewards points. But in order to take advantage of this new Pay Yourself Back promotion through the end of September, you must hold either the Chase Sapphire Preferred Card or the Chase Sapphire Reserve.
To start with, The Chase Sapphire Preferred Card is one of our favorites. It earns 2x points per dollar spent on dining out at restaurants and travel expenses.
And Chase added some brand new temporary bonus categories to the card, too. Through the end of September, it earns 3x points on Instacart grocery deliveries on up to $3,000 of spending – plus you get a $50 credit toward an Instacart Express membership. You’ll also earn 3x points at gas stations (on up to $1,500) and 5x points on streaming services like Netflix or Hulu (on up to $1,500).
You’ll also earn 60,000 Chase Ultimate Rewards Points after spending $4,000 in the first three months of card membership. At 1.25 cents each, those points are worth at least $750 toward travel, grocery stores, home improvement, or at Target. Considering the card has only a $95 annual fee, you can come out way ahead.
Click Here to learn more about the Chase Sapphire Preferred Card.
Then there is the Chase Sapphire Reserve, the premium version of the Sapphire Preferred Card with many more benefits that makes the annual fee on the card $550 each year.
But Chase is now reducing the annual fee to $450 for all renewals through the end of 2020. Unfortunately, that lower fee doesn’t apply to new cardholders.
Either way, you get more premium travel benefits like lounge access, a $300 travel credit, and a $100 credit for Global Entry or TSA PreCheck.
Like the Chase Sapphire Preferred, there are some new temporary bonus categories on the Reserve. Through Sept. 30, you’ll earn 5x points on Instacart grocery deliveries on up to $3,000 of spending – plus you get a $50 credit toward an Instacart Express membership. You’ll also earn 5x points at gas stations (on up to $1,500) and 10x points on streaming services like Netflix or Hulu (on up to $1,500).
And for opening the card and spending $4,000 in the first three months of card membership, you can earn 50,000 Chase Ultimate Rewards Points. But since the points redeem at a value of 1.5 cents each, these points will be worth up to $750 towards travel, groceries, restaurants, and even at home improvement stores.
Even if you have no travel planned for the foreseeable future, again, this is a heck of a deal, but starting with the Sapphire Preferred to earn more points now is likely the better option. You can always upgrade to the Sapphire Reserve at a later date.
Click Here to learn more about the Chase Sapphire Reserve
As far as we’re concerned, Chase’s Pay Yourself Back feature just got even better. The ability to use points to cover everyday spending gives these points some much-needed flexibility when most people aren’t booking travel.
Purposeful or not, adding Target to that mix just makes it even more lucrative.