Credit Card News
Chase Sapphire Reserve Reveals Revamp, Increased Annual Fee
Following weeks of rumors and teases, Chase officially unveiled a major revamp for its flagship Chase Sapphire Reserve card.
About the Updated Chase Sapphire Reserve Card:
Chase is bringing a host of new credits to its popular Chase Sapphire Reserve card — while also making adjustments to its rewards rates and annual fee.
First, Chase states that the updated card offers “over $2,700” in value. That starts with a $300 Annual Travel Credit, which the bank calls “the most flexible travel credit available.” This credit will reset on your cardholder anniversary, whereas the other credits on the card will operate on a calendar schedule.
Next, the Sapphire Reserve is gaining a $500 per year credit for The Edit — which is Chase’s equivalent of Amex’s Fine Hotels & Resorts program. This credit is divided up into two semi-annual credits of $250 (One valid January through June and the other July through December). Note that these bookings must be prepaid and there is a two-night minimum. Elsewhere, cardholders will also earn up to $300 per year on Sapphire Reserve Exclusive Tables. Once again, this is a semi-annual credit of up to $150.
As for other credits, Chase is partnering with a number of well-known brands. With this update, Sapphire Reserve customers will enjoy a complimentary Apple TV+ and Apple Music subscription. This perk is valued at $250 annually. Cardholders will also receive $10 in Lyft in-app credits per month, up to $120 in annual statement credits towards Peloton memberships, and up to $300 per year ($150 semi-annually) on StubHub.com and viagogo.com purchases. There are also offers for DoorDash as cardholders will get a complimentary DashPass membership, plus $5 in monthly promos to spend on restaurant orders and $10 in monthly promos to save on groceries, retail orders, etc.
In addition to those credits, Chase is also making some huge changes to the Sapphire Reserve’s rewards earning. Starting at the top, cardholders will now earn 8x on Chase Travel purchases and 4x on flights and hotels booked directly with airlines or hotel brands, respectively. However, the card will no longer earn 3x on the more generic travel category it previously offered. The card will continue to earn 3x on dining as well.
Another change is that Sapphire Reserve customers will no longer have the option of redeeming Ultimate Rewards points for 50% more by using Chase Travel. Instead, the company is introducing Point Boosts, which value points at double their regular value. Some examples featured on Chase’s site include premium cabin tickets on select airlines and top hotels.
Lastly, cardholders who spend at least $75,000 or more on their card in a year will be able to unlock even more value. Among the perks at this milestone are a $500 credit for Southwest Airlines bookings made via Chase Travel, Southwest A-List Status, IHG One Rewards Diamond Elite (note: Sapphire Reserve customers enjoy complimentary HG One Rewards Platinum Elite status by default), and $250 in statement credits on purchases through The Shops at Chase.
With all of these additions, Chase is increasing the annual fee for this card. Now, the Chase Sapphire Reserve will cost $795 per year (up from the current $550). The updated card will become available on June 23rd — alongside a new business version, which we’ll discuss on another day.
My Thoughts:
Before I even talk about what the card has to offer, I want to talk about how the details of this revamp were officially announced. Rather than putting out a regular press release, Chase opted for an Instagram carousel post on the Chase Sapphire account. Perhaps that should be a clue as to the market the bank is aiming for with this update.
As for what I think about this revamp, while it definitely has some appealing qualities, I don’t think I personally would be able to make enough use of the credits to make that new $795 annual fee worth it. That said, the $250 semiannual The Edit credit, Apple TV+/Apple Music credits, and $300 annual travel credit alone do make this pretty compelling. I also think what Chase has done with the additional perks you unlock after spending $75,000 on the card is interesting, as the $500 Southwest Chase Travel Credit seems like a pretty great deal.
One thing’s for sure: this update is going to be polarizing. It also makes you wonder how other cards will respond. Heck, Amex has already teased a major revamp of the Platinum card (a move obviously timed to try to steal some thunder from Chase). So, while I’m unlikely to become a Chase Sapphire Reserve customer, I will absolutely be watching to see the impact this card revamp has on the market.
Author
Other Articles by Kyle Burbank
Personal Finance News
FinTech News
Home Equity FinTech Trovy Raises $15 Million
A FinTech offering a home equity-backed credit card has announced a new round of venture funding. About Trovy and Its Funding Round: This week, Trovy revealed that it had raised $15 million. The Series A was led by Left Lane Capital, with returning seed investors Kleiner Perkins, DCM Ventures, and Camber Creek also participating. With this round, Trovy's total funding to date now sits at $25 million. According to the...
Book Reviews
