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Guide to Chase Pay Yourself Back – a new (and exciting!) way to redeem Chase Ultimate Rewards

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Guide to Chase Pay Yourself Back – a new (and exciting!) way to redeem Chase Ultimate Rewards

Joseph HostetlerGuide to Chase Pay Yourself Back – a new (and exciting!) way to redeem Chase Ultimate RewardsMillion Mile Secrets Team

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Chase recently debuted a new way to redeem Chase Ultimate Rewards points — and it’a good one.

It’s always good news when a credit card issuer or loyalty program gives us another way to redeem points. With this new option, called Pay Yourself Back, you can receive up to 1.5 cents per point (depending on which Chase credit card you have).

I’ll show you exactly how to use Chase Pay Yourself Back, who should use it, and why it makes the Chase Travel Portal obsolete.

What is Chase Pay Yourself Back

With Chase’s new Pay Yourself Back feature, if you have a Chase Sapphire Preferred® Card and Chase Sapphire Reserve® you can redeem points for a statement credit to offset spending on groceries, home improvement stores, and dining. From May 31 to September 30, 2020, you can redeem your points at the following rates:

This return rate is substantially higher than just cashing your points out, in which case you’ll get a value of 1 cent per point. You have 90 days from the time each eligible transaction posts to erase it with your Chase points.

How to maximize Chase’s Pay Yourself Back

If you’ve collected Chase points for a while now, you may notice something familiar about the above statement credit redemption rates: They’re exactly the same as if you were to redeem your points for travel through the Chase Travel Portal. This means that if you tend to use your points to book travel through the Chase Portal, you should stop doing that — at least while you can still redeem your points for between 1.25 and 1.5 cents each for statement credits (I’m not sure what will happen after September 30, 2020).

So why does switching your points redemptions from travel to groceries, dining, and home improvement stores make sense? First understand that you’re getting the same value from your points. If you want to offset your $600 hotel stay this month with Chase points, you could just as easily use points to offset $600 in groceries and dining purchases. You’ll still effectively get your $600 hotel room for “free” by using the same amount of points. HOWEVER, redeeming for those non-travel related purchases is smarter for two reasons.

1. You won’t earn Chase points on your card when redeeming through the Chase Travel Portal

When you reserve travel through the Chase Travel Portal, your card is not charged the amount for which you’re redeeming points.

For example, if you have the Chase Sapphire Reserve, your points are worth 1.5 cents through the Chase Portal. If you simply use 13,334 Chase points to book the flight, your card won’t be charged, and therefore you’ll earn ZERO points.

Instead, you could use Pay Yourself Back to reimburse $200 in groceries. Then you could SPEND $200 for your flight, which will earn 3x points with your Chase Sapphire Reserve. This way, you’ll earn 600 points you otherwise would not have. 600 points is worth $9 in groceries, dining, or home improvement stores (or travel, of course).

2. You won’t earn hotel points or elite status when redeeming through the Chase Travel Portal

When you reserve travel through the Chase Travel Portal, you’re actually booking through Expedia, which is an “online travel agency.”

When you book hotels through an online travel agency, you won’t get the benefits that come with booking direct with the hotel, namely:

  • You won’t earn hotel points for your stay
  • You won’t earn elite night credits for your stay
  • Your elite status will not be recognized, and you won’t get any perks that come with it (like room upgrades, free breakfast, spa credits, etc.)

Instead of using points to book through the Chase Portal, you can use your card to book directly with your desired hotel, receive all of the above perks, and reimburse yourself for the cost by using Chase Pay Yourself Back for groceries, dining, and home improvement stores.

You could even book a hotel through an online portal and earn bonus cash back or points. You can read about how to do that here.

How to use Chase Pay Yourself Back

Step 1. Navigate to the Chase Ultimate Rewards website

Head to the Chase Ultimate Rewards website and choose which Chase card you want to view. Only the Chase Sapphire Reserve® and Chase Sapphire Preferred® Card qualify for this Pay Yourself Back benefit, so choose one of those.

Step 2. Click the Pay Yourself Back button

At the top of the page is a drop-down menu showing you all the possible ways to redeem your Chase points. This is where you’ll find the Pay Yourself Back feature, and it’s extra easy to find because it’s tagged as NEW. Click it.

Step 3. Enter the amount you’d like to be credited

You’ll be taken to a screen that shows all your recent eligible transactions (groceries, home improvement stores, and dining). With each purchase, you can stipulate the amount of points you’d like to cash out. Below, I’ve decided to be reimbursed for $1 of my $45 order.

I have the Chase Sapphire Preferred, which means my points are worth 1.25 cents each through this method. I’ll have to spend 80 points to get $1 off my order.

Step 4. Confirm and submit

Click the Confirm & Submit button, and you’re done! Your statement credit will post within three business days. Note that with each transaction, you’ve got one opportunity to reimburse yourself. In other words, if you decide to only reimburse half of a purchase, you won’t be able to reimburse yourself for the other half later — the purchase will disappear from your list of eligible transactions.

Chase transfer partners are still the best option

Yes, you can get up to 1.5 cents per point by redeeming with Pay Yourself Back. But we estimate Chase points value to be around 2 cents each. That’s because you can get vastly outsized value for your points by converting your points to airline miles or hotel points with valuable Chase transfer partners, and then redeeming for luxury hotels or business/first-class flights.

For example, I transferred 25,000 Chase points to Hyatt for a stay at the Hyatt Zilara Cancun. The hotel was selling for around $550, meaning I received a value of 2.2 cents each. That’s $175 more value than even the best return you’ll get with Pay Yourself Back. By redeeming 25,000 points via Pay Yourself Back, you’d get:

Read our post about how to transfer Chase Ultimate Rewards points for more details and ideas to getting huge value from your points.

Bottom line

We don’t know what Pay Yourself Back will look like long-term, but between May 31 and September 30, 2020, you can redeem your points at the following rates:

You can also transfer the points you earn from other Chase Ultimate Rewards cards to these two above cards to unlock the biggest return for your spending.

Just remember, we usually recommend using Chase transfer partners to get the biggest bang for your point. We estimate that Chase points are worth 2 cents on average when using your points this way. However, if you want money now, this is as good as time as ever to cash out.

To learn more about how to best use Chase points, you can subscribe to our newsletter!

Chase Sapphire Preferred® Card

Chase Sapphire Preferred® Card

  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.

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 Wayfair code as home improvement? Is there a list of home improvement stores? Thanks!

Pay yourself back is how all chase travel should work. The chase portal via Expedia is frankly poor. Every time I book travel I have to go to the chase site and then go to the Delta site to upgrade seats etc. Every time I cancel or change a booking I have to call both Delta and Chase to get it done. There has been a lot of that lately. Why not get rid of all the chase booking overhead and allow me to book with Delta, Expedia, Hyatt or whoever and cancel out the expenses on the chase site as I see fit. Matthew Massaua are you listening? Pay Yourself Back is awesome make it work for travel.

Can we do this multiple times or do we have to decide on everything to pay yourself back on in one single transaction? i.e. I use this for $500 grocery store now and in a few weeks do that again vs. waiting and doing both purchases at once through the pay yourself back link?

Secondly if we pay yourself back are we still earning the 5x credit that is currently available on chase reserve for grocery stores or do we lose that “bonus” on the items we pay yourself back on?

Thanks for any insight.

Author

Good questions! You can redeem each transaction at your leisure, as long as it’s within 90 days of purchase. In other words, if you spend $150 on groceries each week, you’ll see multiple $150 charges for which you can redeem at different times.

I checked my account to see if Chase clawed back any points after my Pay Yourself Back credit posted, and they haven’t. You should still earn all points after redeeming your points in this way. Chase isn’t refunding you, they’re giving you a statement credit.

Can I use the points on my csp/csr to pay the transactions on my chase freedom card?

Author

Unfortunately not:( Only for transactions made with the CSP/CSR. Which is a bummer since grocery stores are currently a 5x bonus category. But remember that the CSR currently offers 5x back on groceries, and the CSP earns 3x:

https://millionmilesecrets.com/news/chase-adds-5x-points-grocery-purchases/

Do you know if expenditures at Costco can be covered in this way.

Author
Joseph Hostetler

Costco does not usually code as groceries — I’ve never seen it show up that way on a Chase card (unfortunately!).

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