Let’s face it: What we’re all spending on has done a 180. Travel is out, and groceries, takeout, and projects around the house are in.
And banks get that. That’s why Chase introduced its new Pay Yourself Back feature, allowing cardholders with the Chase Sapphire Preferred Card and Chase Sapphire Reserve to use their points to cover purchases at grocery stores, grocery delivery services, restaurants, and hardware stores. It even works at Target.
Considering grocery bills always eat up a sizable part of our budgets – and, let’s be honest, that’s truer than ever – this is a potentially lucrative way to use some Chase points to offset your costs while travel is on hold.
We’ll walk you through how it works.
How to Use Chase Points to Cover Your Grocery Bill
If you have a stash of Chase Ultimate Rewards points (or even if you decide to open a Chase Sapphire card as a new member) you’ve got more options to use them. This new Pay Yourself Back function lasts through Sept. 30, 2020 – though there are rumors that this benefit may become permanent.
When you use points to Pay Yourself Back, they’re worth the same as if you were redeeming them toward travel in the Chase Ultimate Rewards Portal. With the Chase Sapphire Preferred Card, each point is worth 1.25 cents. Got the Chase Sapphire Reserve? Each point is worth a bit more, at 1.5 cents each.
If you are familiar with how the Capital One Purchase Eraser feature works, this new Pay Yourself Back feature is very similar.
First things first: All you need to do is make a purchase at any grocery store using your Sapphire card. Any grocery store (or even a Target store) will do.
After making that purchase, you can simply log into Ultimate Rewards on desktop or through the Chase mobile app and select “Pay Yourself Back” from the drop-down menu.
Once here, you can select from recent eligible transactions up to 90 days prior and choose to redeem points for all or a portion of the purchase.
Since this works for both grocery stores and delivery services like Instacart, we can select both transactions below and use Chase Ultimate Rewards points to remove them from my statement. In this example, with the Chase Sapphire Reserve, each point covers 1.5 cents. If I held the Chase Sapphire Preferred Card, the redemption value would be 1.25 cents for each point.
After selecting a transaction you want to redeem Chase points for, you’ll be given the option to use points to cover all or part of the transaction. Once you make that decision, you can hit “Confirm & Submit.”
It’s that simple. And while you may decide you’d rather hang on to your points until you can book travel again, this is a great way to use them for some extra value. That’s especially true if you plan on racking up more Chase points…
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 – especially right now. It earns 2x points per dollar spent on dining out at restaurants and travel expenses. And through the end of September, it also earns 3x points per on both Instacart orders and at fast stations. Plus, you’ll earn 5x points on streaming services like Netflix and Hulu.
You’ll also earn 60,000 Chase Ultimate Rewards Points after spending $4,000 in the first three months of card membership. And considering the card has only a $95 annual fee, you can come out way ahead on the initial investment if you use the points for groceries, restaurants, or even at home improvement stores.
When you use them this way, they will be worth $750. That means if you can get approved for the card and have the financial means to meet the $4,000 spending requirement in three months to earn the bonus, you can come out $655 ahead on your grocery bill after subtracting the $95 annual fee.
Even if you have no travel planned for the foreseeable future, this is a heck of a deal.
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.
And with that higher annual fee, you get more premium benefits. You’ll also earn 3x points per dollar spent on dining out at restaurants and travel expenses. Through the end of September, it also earns 5x points per dollar on Instacart orders and at gast stations. And you’ll also earn 10x points on streaming services.
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.
In these times, 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
Is it ultra exciting to use Chase points to buy your groceries? No, not really. But at a time when travel is out of mind for many, it’s great that Chase has added this option to get some additional value out of your points while you’re stuck at home.