Both the Chase Sapphire Preferred® Card and the Chase Sapphire Reserve® have new card art.
And, more importantly, Chase Sapphire Preferred cardholders are going to enjoy some modified benefits.
Let’s take a look at what we know so far.
Chase Sapphire Preferred® Card Changes Rewards Structure
New and existing Chase Sapphire Preferred cardholders can expect a modified spending rewards structure for 2024 and beyond:
New Rewards Details
Enjoy benefits such as 5x on travel purchased through Chase Ultimate Rewards, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Ultimate Rewards Hotel Credit, plus more.
Old Rewards Details
Enjoy benefits such as 5x on travel purchased through Chase Ultimate Rewards, 3x on dining, and 2x on all other travel purchases, and $50 annual Ultimate Rewards Hotel Credit, plus more.
The key takeaway is this: Preferred cardholders now can earn 3x points on select streaming and online grocery purchases.
You’re probably wondering: What qualifies as a “select” streaming service and what is an eligible “online grocery” purchase?
I was able to retrieve some useful information from Chase's rewards category information page.
Eligible Streaming Services
"Merchants in this category specialize in delivering music and video content over the internet. Only subscriptions paid for, or purchases made with the following select merchants will qualify for this category: Apple Music, Apple TV, Disney+, ESPN+, Fubo TV, Max, Hulu, Netflix, Pandora, Paramount+, Peacock, Showtime, SiriusXM, Sling, Spotify, YouTube Premium, YouTube TV and Vudu. The listed merchant(s) should not be considered sponsors or co-sponsors of this program."
Eligible Online Grocery Purchases
“This category includes purchases for grocery pickup and delivery that are placed online with grocery stores, specialty food stores or delivery service merchants that classify as grocery store merchants (excluding membership and subscription fees). Meal kit delivery services are included. Some merchants that sell grocery items are not included in this category; for example, larger stores that sell a wide variety of goods and groceries like Walmart and Target, wholesale clubs such as Costco and BJs, liquor stores and merchants that specialize in only a few grocery items. Pharmacies contained within supermarkets will not earn, regardless if it is pickup or delivery. Purchases of gift cards, gift baskets and boxes that include grocery items will not be included.”
Chase Sapphire Cards Get a Fresh Look
On top of the news about enhanced rewards for Sapphire Preferred cardholders, Chase also unveiled a fresh look for the cards.
Here’s a look at the new card art for each, as well as some of the important information about the cards:
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Annual Fee:
$95
Foreign Transaction Fee:
$0
Auto Rental Insurance Coverage:
Yes
Bonus Offer:
Earn 60,000 bonus points
Bonus Offer Disclaimer:
after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
Rewards Program Details:
Enjoy benefits such as 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Ultimate Rewards Hotel Credit, plus more.
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Annual Fee:
$550
Foreign Transaction Fee:
$0
Auto Rental Insurance Coverage:
Yes
Bonus Offer:
Earn 60,000 bonus points
Bonus Offer Disclaimer:
after you spend $4,000 on purchases in the first 3 months from account opening. That’s $900 toward travel when you redeem through Chase Ultimate Rewards®
Rewards Program Details:
Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases
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Are Chase Sapphire Cards Worth It?
The Chase Sapphire line of travel credit cards is popular for a good reason. Between a generous welcome bonus, relevant spending rewards categories and solid travel-related perks, there can be a lot of value in having one of these cards in your wallet.
Money expert Clark Howard says the Chase Sapphire line of cards, along with the Capital One Venture line of cards, are among the best travel rewards programs out there.
“After you net out the benefits of each of them, if you travel even just several times a year, the net cost of having the annual fee ends up being below zero in both cases,” Clark says.
He believes they are a good choice for many travelers because of their lack of a tie-in to a particular airline or hotel chain. This will allow you to shop for the best deal possible for your destination.
If this has piqued your interest, you are probably wondering which level of Sapphire card best suits you. It likely depends on the amount of traveling you do each year.
Ask yourself: Do you spend enough on travel to justify the enhanced perks that come with the hefty annual fee of the Reserve card? And how important is lounge access to you while traveling?
If you’re not spending thousands on travel each year, you may find that the small annual fee attached to the Preferred is more digestible.
Team Clark has a comparison of the Sapphire cards to help you make that decision.
Do you have one of the Chase Sapphire credit cards? What is your opinion on the announced changes? We’d love to hear your thoughts in the Clark.com community.
The post Chase Reveals New Rewards Structure for Popular Credit Card appeared first on Clark Howard.