Chase is increasing the annual fee on its wildly popular Chase Sapphire Reserve card from $450 to $550 while adding a handful of new benefits to the card.
The Chase Sapphire Reserve has been one of the top travel rewards credit cards since its launch back in 2016, and for good reason. The card offers some of the best benefits you will find including an annual $300 travel credit, a $100 credit for Global Entry or TSA PreCheck, lounge access, and much more.
And it turns out those benefits were a bit too rich. Chase has confirmed that the card's annual fee will increase from $450 to $550 – the bank has already added the higher fee to its cardmember agreement page. The higher annual fee takes effect for new applicants next week – starting Sunday, Jan. 12. Existing cardholders won't get hit with the $550 annual fee until after April 1 – so if your card renews beforehand, you'll pay the current rate.
But Chase is also adding some other benefits to the card with the higher cost, including credits for DoorDash deliveries and perks with Lyft.
Here's everything you need to know about the changes brewing for the Chase Sapphire Reserve.
A Higher Annual Fee of $550
While there are other changes coming for the Chase Sapphire Reserve card, this is the big one.
The card's annual fee will increase to $550 for new cardholders beginning with applications received on and after Jan. 12, 2020.
If you already have the card, existing cardholders will get hit with the higher annual fee starting in April 2020. That means if you pay your next annual fee before April, you'll still pay just $450. And you would receive almost a full year of some new benefits at the lower annual fee price of $450.
Chase laid out the higher $550 on its cardmember agreement page.
And if you are thinking about applying for the Sapphire Reserve, now is the time to do so. The annual fee will increase on Sunday, Jan. 12. You can lock in a year of the new benefits now at the $450 annual fee rate.
Complimentary Lyft Pink Membership
Starting as soon as Jan. 12, new and existing cardholders will receive a complimentary Lyft pink membership. Lyft Pink allows users to get 15% off every Lyft ride, gives you priority airport pickups, relaxed ride cancelations and more. Lyft normally charges $19.99 a month for this membership.
And The Points Guy is reporting that the card will earn 10x Chase Ultimate Rewards points per dollar spent on rides with Lyft. That would be in addition to additional miles you can earn with Delta and points with Hilton.
$60 Annual DoorDash Food Delivery Credit
The card will be adding an annual $60 credit for DoorDash food delivery for both 2020 and 2021 ($120 total). You will be able to use this however you see fit as it won't be doled out in monthly increments, similar to how the American Express Gold Card handles its dining credit.
And that makes sense, given one concrete addition that was added to the Chase Sapphire Reserve this week: a free DoorDash DashPass membership through 2021. DashPass will waive delivery fees on DoorDash orders and lower platform fees. DashPass typically costs $9.99 per month and DoorDash claims it will save you an average of $4 to $5 on every order.
Is the Chase Sapphire Reserve Worth $550 a Year?
Any annual fee increase is tough to swallow. This one is no different.
We haven't heard of any of the card's existing benefits disappearing, but it's safe to say that these additions to the card are underwhelming. Coupled with a $100 increase to the annual fee, it's a disappointing change.
Chase is following American Express's lead here. American Express increased the fee on the Amex Platinum card to $550 back in 2018. And these Lyft and DoorDash credits look an awful lot like the monthly Uber credits you get from the Amex Platinum or the monthly dining credits on the American Express Gold Card.
And here is the thing: Lyft and DoorDash don't operate everywhere. If you are a Sapphire Reserve cardholder living somewhere you can't use these benefits, you'll be paying another $100 for benefits you can't really use. Because of this, I think a lot of people will be disappointed with these updates – and rightfully so.
Still, there's plenty of value in the Chase Sapphire Reserve – and arguably, too much. The $300 travel credit is easy to use up every single year, as it applies to any travel-related purchase: flights, hotels, Uber or Lyft rides, parking fees, and more. That effectively lowers the current annual fee to $150.
Chase is clearly looking to recoup some of its costs with this annual fee increase.
Bottom Line
It seems clear that Chase is following American Express's lead in how they refreshed the Platinum Card a few years ago. Coupling an annual fee increase with some harder-to-use benefits is a great move for banks, but a tough development for travelers who get a lot of value out of the Chase Sapphire Reserve.
Thanks for the update! Looks like mine will renew on March 1, so I guess I’ll give it another go around the sun. Still haven’t managed to get signed up for Global Entry and every time I fly there seem to be no lounges…will have to force myself to use them a little more this year and get that Lyft/DoorDash benefits.
Wow! This blows. I renew on July 1, 2020. Heavily considering leaving the Reserve family to try out the AMEX, especially if I can qualify for their 100K bonus points offer.
Hopefully another credit card comes available with better perks and less cost. I definitely switch then!!!
I live in Hawaii. Never heard of Door Dash and I never use Lyft. I’ve got over 300K UR points and I think I will try to use them all before my annual fee is assessed. Fortunately, that won’t be until December 2020.
You can always downgrade to the Sapphire Preferred to keep your points intact. The card earns the same points.
https://thriftytraveler.com/chase-sapphire-preferred/
The last two years, my annual charge has posted exactly on April 1. Any idea if I will sneak in with the lower fee or if it will be the new higher amount? If it will be higher, I may downgrade. Thanks.
Tough to say for sure, Paul – you may want to call Chase directly and ask for guidance.
I will contact them, although I am always worried that a rep will tell me something that turns out to be false …
I had another thought if I ultimately decide to downgrade – would it be better to apply for a new CSP (and get the sign-up bonus), transfer all my CSR points to the CSP, and then cancel the CSR? Can you get the CSP signup bonus if you already have the CSR? Would the extra points from this strategy be worth any negative impacts to my credit score, or 5/24 status? Thanks.
No reason to do anything until your annual fee is due. If it is before this coming April, you will still renew at the $450 rate.
You won’t be approved for the CSP if you hold the CSR. Chase allows you to have one or the other. And if you earned a bonus on the CSR within the last 48 months, you would be ineligible to earn it on the CSP. Your best option would be to do a product change and just downgrade to CSP if you don’t want to keep Reserve. This will keep your points intact.
When doing a product change and downgrading, do you know what the implications on credit score are? In other words, does Chase report that as an account closure and subsequent new account or does the credit history stay intact?
When doing a product change, the bank will view it as the same line of credit. Thus the credit history will stay intact and there is no account closure or new credit pull.
Any idea WHEN in April the higher fee will start? I read the member agreement and don’t see a date. Mine pays on April 1. :-/
It’s not yet clear. I would assume starting with renewals on April 1, but you may want to call Chase to confirm.
Just be aware if changing to AMEX, a lot of foreign countries don’t accept AMEX cards.