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Has Chase Changed The Way They Refund Annual Fees?

Has Chase Changed The Way They Refund Annual Fees?

Million Mile SecretsHas Chase Changed The Way They Refund Annual Fees?Million Mile Secrets Team

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Via Doctor of Credit, Chase might have a new policy for reimbursing annual fees when you cancel or downgrade a credit card.

In the past, folks could get a prorated refund up to 6 months after paying a card’s annual fee.  This means if you paid a $100 annual fee, you could cancel or downgrade 6 months later and get $50 back.

But now, you might only have 30 days to cancel or downgrade and get a credit for the annual fee after it is billed.

Chase Annual Fee Reimbursement
There Are Potential Changes to the Chase Annual Fee Reimbursement Policy!

I’ll explain why this change shouldn’t affect most folks!

New Chase Annual Fee Reimbursement Policy

Link:   Doctor of Credit

Link:   How to Get Your Annual Fee Waived

Link:   When to Cancel Your Credit Cards

Doctor of Credit and several folks on Reddit indicate Chase is no longer offering to refund annual fees unless you cancel or downgrade a card within 30 days of the annual fee appearing on your statement.

But Million Mile Secrets team member Keith called Chase recently.  And they still offered a prorated refund for an annual fee that was billed on a Chase Sapphire Preferred card 3 months ago.

Chase Annual Fee Reimbursement
It’s Possible You Still Might Get a Prorated Annual Fee Credit If You Cancel or Downgrade Your Card

The new policy may not be in place for all cards across the bank, yet.  But if the change at Chase does occur, it will be the same as the policy for all American Express cards.

Banks are likely making these changes because some folks apply for cards to get a sign-up bonus, then cancel the card right away.  This is a big no-no in the miles & points world.  And it could get you blacklisted by the banks!

That’s why I usually recommend folks hang onto a card for ~10 months.  This gives you time to evaluate the perks of a card and see if it’s worth keeping.

And cards with annual fees usually come with terrific perks that can make them worth keeping.  Like a free hotel night, bonus points, or elite status.  That’s why even thrifty folks like me keep annual fee cards year after year!

For example, I always keep the Chase IHG card in my wallet, even with the $49 annual fee.  Because it comes with a free night certificate every year on your card anniversary.  And it can be used at ANY IHG hotel in the world!  This can be worth hundreds of dollars!

Chase Annual Fee Reimbursement
You Can Enjoy a Free Stay at the InterContinental Amstel Amsterdam With the Free Night on the Chase IHG Card! That’s Just One Reason the Card Is Worth the Annual Fee!

Remember, instead of canceling, you can always downgrade to a no annual fee card!

Bottom Line

Chase might be changing the policy for reimbursing annual fees when you cancel or downgrade a credit card.  Instead of having 180 days to receive a prorated refund, you’ll only have 30 days to get the annual fee back.

So be sure to keep track of when your annual fee hits.  And remember annual fee cards have lots of perks that might make them worth keeping!

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Chase Sapphire Preferred® Card

Chase Sapphire Preferred® Card

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  • Chase Sapphire Preferred® named a 'Best Travel Credit Card' by MONEY® Magazine, 2016-2017
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening
  • No foreign transaction fees
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Get 25% more value when you redeem for travel through Chase Ultimate Rewards. For example, 50,000 points are worth $625 toward travel.
  • No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards

More Info

Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

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Does anyone know how they handle things like the $300 annual travel credit on the Sapphire Reserve? If my annual fee anniversary is January 1st for instance, and I get a new $300 annual travel credit on Jan 1 – can I use the $300 credit towards some travel spending, and then cancel my card and get a refund of the $450 annual fee? Or do they somehow offset it for the credited amount?

Thanks

I recently cancelled the Chase Sapphire Preferred 6 months into my year, upon getting approved for the CSR and they gladly reimbursed half the annual fee even without me having to ask for it.

Author
Million Mile Secrets

That’s great customer service!