Now Live! Will You Pay Yourself Back (Twice?) For Dining, Grocery, And Home Improvement Purchases With Sapphire Preferred Or Sapphire Reserve Points?

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On Thursday Chase added several new benefits to their Sapphire Reserve and Sapphire Preferred cards.

As of today, you can redeem your Sapphire Reserve Ultimate Rewards points to offset any dining, grocery store, or home improvement purchases at a rate of 1.5 cents per point or you can redeem your Sapphire Preferred Ultimate Rewards points at a rate of 1.25 cents per point.

This limited time promotion will expire on 9/30.

Other limited time Chase promotions include:

You can click here to redeem your points for statement credits against dining, grocery store, or home improvement purchases.

You have 90 days after a purchase to redeem points for a statement credit against it. The site tells you how many days you have left to redeem points and it also works for restaurant and grocery delivery services:

 

You can choose to redeem points against all or part of a purchase:

 

Interestingly, it even allows you to redeem points against purchases that were covered by card benefits. For example this Doordash purchase was automatically reimbursed by Sapphire Reserve’s $60 annual Doordash benefit, but is still eligible for reimbursement a 2nd time by redeeming points:

 

That should mean that you can get a 2nd statement credit for groceries that are already refunded as part of the Sapphire Reserve’s expanded $300 travel credit, which is valid for purchases on gas and groceries between 6/1-12/31.

If you, a household member, or an additional user business co-owner have points on other cards you can combine them together to redeem them with your Sapphire card.

You can do that by clicking here to go to the combine points page. Just click on the card you want to transfer points to and from or click to add a household card account.

You can also upgrade your Freedom, Freedom Unlimited, Sapphire, or Sapphire Preferred card to a Sapphire Preferred or Sapphire Reserve to take advantage of this promotion. Or you can apply for a new Sapphire Reserve or Sapphire Preferred card

Of course the real question is should you do this? If you redeem points for paid travel at a rate of 1.5 cents each then it’s a no-brainer to claim as many statement credits as you can during this time period. Redeeming points via Chase for travel means that you have to book via the Chase portal, which means you lose out on benefits like hotel elite perks and free baggage on United for United cardholders when using a United card.

If you use points for mileage transfers, this is much trickier. Those points can be worth much more than 1.5 cents each when you redeem for valuable redemptions. But with mileage programs devaluing their points and heading towards dynamic point redemption, who knows how much longer outsized redemptions will stick around. We can hope that airlines and hotels realize they need to offer aspirational redemptions at a good value to keep people from switching to cashback cards, but the trend has not been good.

Some people may start maximizing their dining, grocery store, or home improvement purchases. For example you can buy gift cards for hundreds of stores at those stores that you can get reimbursed at a rate of 1.5 cents per point.

But it’s also perfectly OK to just use it for regular purchases to take some chips off the table and leave yourself with enough points to still use for your trips. You can also set aside the cash redeemed to use on future travel when transferring points aren’t advantageous over paid travel.

If you need the cash now, then cashing out your points in this manner is easy to recommend. There’s certainly zero shame in redeeming Chase points for 1.5 cents cash and the extra cash can help people get through these difficult times. Plus credit card points are considered a purchase rebate, so you won’t owe any taxes on these points.

I also think it’s great that groceries is a valid category for this promotion as well as the expanded $300 travel credit promotion, as that is easily redeemable and can really help people that were hit hard financially by COVID-19. Plus many grocery stores also offer rewards for gas, which can mean that you’ll get even more perks for your reimbursed grocery purchases.

Personally I’m torn. I typically transfer points to miles where I get a value of 2 cents or more per point. Having Chase points means I can transfer them on demand when I figure out exactly which airline or hotel will give me the best value for my points. But it becomes more difficult to justify that strategy when points can be cashed out at 1.5 cents each!

Will You Redeem Your Chase Points For Statement Credits With This Promotion?

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133 Comments On "Now Live! Will You Pay Yourself Back (Twice?) For Dining, Grocery, And Home Improvement Purchases With Sapphire Preferred Or Sapphire Reserve Points?"

All opinions expressed below are user generated and the opinions aren’t provided, reviewed or endorsed by any advertiser or DansDeals.

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DoB

Any idea if we get to keep the points earned (including 5x on groceries) if we pay ourselves back?

Brian

Will post DPs. Terms look to be in our favor, but let’s see…

Damon

Just got my credit and can confirm, yes. You keep the initial points accrued for the purchase.

Jeff

I currently have the CSP.

If I upgrade to the CSR, I’m going to be charged $550 or $450?

Thanks

Falak Kalwa

Just upgraded Today. $450

Geshmak25

Dan – regarding upgrades, will we be charged $450 or $550? Will we be able to redeem for grocery purchases placed on the original card?

Falak Kalwa

I upgraded Today and it happened in instant. Allowed me to redeem prior purchases for 1.5x with the new reserve.

JS

If I already paid for purchases can I still redeem for statement credit?

EG

When you have more than 6,000,000 points, you can talk about taking some chips off the table…

Covid Patient

Trying to understand. How can i redeem for 1.5 cash?

“If you need the cash now, then cashing out your points in this manner is easy to recommend. There’s certainly zero shame in redeeming Chase points for 1.5 cents cash and the extra cash can help people get through these difficult times.”

S

Dan, for someone like you that has “unlimited” points, than ya might as well cash as much out as you could.

J

To clarify on your earlier comment…if I want to upgrade from preferred to reserve, should I first cash out on previous purchases or do you think they will be there to cash out at the higher rate after the upgrade? Thanks!

texlong

thanks I am redeeming it and downgrading at next annual renewal

Joe

20% bonus on apple redemption too

AM

If I spend at apple, will it show up as possible redemption or do I need to purchase through ultimate rewards?

SK

Just cash out at 50% and buy with CC.

jonny

Is this only redeemable against grocery purchases made on the CSR? What about grocery purchases I made on my Freedom Card (since this quarter was 5% back)?

Yandmk

Amazing! It works for purchases in Israel, too. I usually aim for 1.8 cents value, but with the future of travel so shaky, I think I’ll redeem a chunk for statement credit.

Anon

Is there a limit on the amount of points can you redeem all 6 million?

Jay

How does the 20% bonus work with Apple?

Al

Once you exceed $1,500 of grocery purchases in May & June, if you buy a $500 VGC it costs $6 but you receive $7.50 when you redeem. So what am I missing- all you net is $1.50?

DoB

You’ve cashed out your points at a rate of 1.5 cents per point into the form of a VGC that can be used on anything, rather than being only available for travel booked through the (sometimes quirky and incomplete) Chase UR portal. That’s worth a lot more than $6 in my book. (Too bad none of the grocery stores near me sell VGC’s, as far as I know.)

Al

Until this May, no one would have used the CSR for grocery spend. So I don’t see how this is a big help with a stash of points earned in the past.

DoB

Spend on groceries now to free up the points you’ve earned in the past.

Al

Once you spend $1,500 per month on grocery in May & June isn’t it better to earn 12x with the Amex Hilton Surpass?

DoB

Also (and most obviously) not if you don’t have the Amex Hilton Surpass.

Sm

So if my current statement balance is zero, and i use points to redeem past purchases i essentially can cash out my points at a rate of 1.5c, is that right?

Al

Only for grocery dining and home improvement stores.

nirc

too bad ink business preferred not offer this option, yet.

Chaim

Is BJs or Costco grocery?

AB

Is Walgreens a grocery ?
Is it x5 for $1500 in May plus x5 for $15oo in June ? Spend $3000?

yair

here’s an interesting data point: for some reason my zoom subscription is also showing up for 1.5 CPP redemptions. Not sure why, but i’ll take it.

Ron

Does Chase send 1099s for statement credits?

D

Does bingo work?

sam

Any use calling them to change the coding ie Bingo codes as shopping rather than groceries?

JS

Can you redeem the same purchase more than once?

SK

Can I get the money in my account since I paid already a big CC bill? Or is a statement credit the only option?
Also once I get the statement credit can I spend that credit for anything, or only in the catagories mentioned?

Omeed Donay

By redeeming points in this manner are you essentially using up your points and exchanging then for cash as opposed to using them for travel, for example?

AY

I made a purchase that I received 2x on the CSP as it was coded as “grocery”, yet when I tried to redeem for 1.25 it doesn’t show up under eligible transactions? I called chase and they said they are 2 different programs so I received bonus points but wouldn’t be able to use points towards it. Any ideas Dan?

Chevron

I don’t think it’s a bad idea for you Dan. Tachlis, where will you travel? You may find some great offers and deals yes but burn 1 million points for 15k in food and groceries and you’ll be ahead.

Your points are not incurring interest. Hence investing 15k you would otherwise spend could net you some real $$ too.

DanFan

What the stores in Home Improvement, is it restricted to only Lowes & Home Depot type or are suppliers included as well?

Mendel

“We are unable to process your order at this time and apologize for the inconvenience. Please try again later or head back to the Ultimate Rewards Homepage to check out other things you can do with your points.”

Saverio

Same here. Any luck? Did you find out the reason for this?

AY

Sorry Dan, I meant I received 3x for the purchase and it does show up as grocery by the purchase. Bottom line, if it works for that bonus shouldn’t it be coded the same for the new “pay yourself back” ?

CLE Rocks

Jade is good Chinese

YM

Whats the “plus 50% more value” – is that on top of the 1.5 cents per point? Whats the total value you receive?

Dav

You mention about redeeming points for paid travel at 1.5.
Do they offer that as well besides on the grocery etc. Categories?

Jack

Is Best Buy counted??

Norman

Does this also apply to the Business Preferred Card?

Sam the man

Anyone know if get disqualified for bonus at later time if u upgrade preferred to reserve?
Also If ye for how long ?

Jay

Anyone having trouble getting the statement credit feature to work? Does it get hung up if this is attempted the same day points have been transferred from a different UR acct? Or near the end of a statement period ?

Chani

Anyone else getting this message: We are unable to process your order at this time and apologize for the inconvenience. Please try again later or head back to the Ultimate Rewards Homepage to check out other things you can do with your points.

Jay

Same —see my post below. Thinking its only a temporary glitch ..

Gary

I never heard of the CSR doordash credit. Good thing I read this post. Lol.

Vini

Anyone knows how gas purchases at Costco/Sams club will work towards Sapphire Reserve $300 travel credit? Thanks.

eli

ERROR MSG: We are unable to process your order at this time and apologize for the inconvenience. Please try again later or head back to the Ultimate Rewards Homepage to check out other things you can do with your points.

Zack

Any luck with this?

Yanky

Upgraded today. They said as of today the rate is still 450 on the annual fee. Can change any point

J

Just called to upgrade and they said $550. Did HUCA and got same answer. I’m waiting for now. Dan – it should switch to $450 on 7/1, correct? Thanks!

David

Is the $300 in addition to yearly travel credit (like Amex did with Dell) or just expanded categories?

tzvi f

is this something that will end after covid?

DoB

“This limited time promotion will expire on 9/30.”

So, most likely not during, not after, covid.

Mog

This 1.5 redemption for groceries is also working on grocery store purchases in Israel.

zal

Still getting this ERROR MSG after a week:

We are unable to process your order at this time and apologize for the inconvenience. Please try again later or head back to the Ultimate Rewards Homepage to check out other things you can do with your points.

Anyone figure out the problem, when receiving this message?

MF

Can upgrade preferred to reserve within the first 13 months?

Shnu

FYI I ran a 19k transaction at home depot through the card assuming it would be repairs and maintenance like it has been in the past. The merchant (or chase) changed it to a different category so I wouldn’t be eligible for the pay yourself back!

Chesky

“ That should mean that you can get a 2nd statement credit for groceries that are already refunded as part of the Sapphire Reserve’s expanded $300 travel credit…”

Is this confirmed? I know those purchases are eligible and are available to use via PYB, but will you actually get a statement credit? I thought this PYB feature is just “covering” your purchases? Which would mean that you’d be wasting points to “cover” a purchase which was already refunded and you didn’t pay for. I’m not so sure that the fact that it’s “eligible” means anything. It’s possible they list all eligible purchases. (without factoring in if it was refunded or not)
TIA!

deb

If you only have the CSP and redeem at 1.25. Would it be wise to spend 1500 on groceries and redeem credit?

Mark

Where do I go to redeem miles for grocery charges? I am searching and can’t seem to find that option anywhere.

Dave

Is ikea home improvement?

LeeLee18

So, it is now the end of June, I have some transactions eligible for PYB, and I am STILL getting the following:
We are unable to process your order at this time and apologize for the inconvenience. Please try again later or head back to the Ultimate Rewards Homepage to check out other things you can do with your points.
The transactions that I am selecting were included in the $300 travel credit.
Has anyone succeeded in getting PYB to work on these transactions? Feeling frustrated.
Thanks!

Pedro

“We are unable to process your order at this time and apologize for the inconvenience. Please try again later or head back to the Ultimate Rewards Homepage to check out other things you can do with your points.”

Anyone any luck?

4yourinfo

Had an issue with the link.. try going to the page “reward yourself” without the link….

Grace

new CSR accounts are $550 af?

the big x

Dan, if I cash out the points against a purchase & then i get a refund or return that item/purchase, how would that work? Would they take back the points I redeemed? Would it raise those red flags and possible shut down my accounts that you’ve discussed in the past?

Yoel Eis

Will these credits for gas and grocery purchases work in a foreign country (Canada)?

Heshy

So if my upgrade fee didnt post after 2 months, did i get away with it?

Melech

What I like about this is that even though the points are worth1.25 for travel as for groceries, on the ultimate rewards portal the “prices” of flights are sometimes more than elsewhere so that effectively reduces the value of the points, ma she’ein kein if you use them for groceries and just buy tickets elsewhere. Thanks r Dan for your clear and concise reports!

YM

You may want to post a reminder for people to redeem their credits before the deadline this week.

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