Heads Up: Chase Sapphire Reserve Offering $100 Annual Fee Credit

In January 2020, Chase decided to raise the annual fee for the Chase Sapphire Reserve (CSR) credit card, not to be confused with the Chase Sapphire Preferred (CSP) credit card.

• CSP Annual Fee: $95/year
• CSR Annual Fee: $550/year (increased from $450 last year)

After making a huge splash on the credit card scene in 2016, the Sapphire Reserve has remained popular for many travelers. However, over the past few months there has been quite a bit of chatter about whether the CSR was worth the increased annual fee ($550).

Regardless of the chatter, there are several data points indicating that Chase Sapphire Reserve cardholders received a secured message from Chase today that said Chase Sapphire Reserve is offering a $100 annual fee credit.

An excerpt of the message read:

We recognize this is a difficult time for everyone. As a way to help, we’re providing you a one-time $100 statement credit toward the 2020 $550 annual fee on your Reserve credit card. On an upcoming billing statement (based on your renewal date), you’ll see a $550 charge for the annual fee, followed by a $100 statement credit. We will continue to bill the $550 annual fee in 2021. Because this credit only applies to open Reserve accounts, if you’ve closed your Reserve account or traded to another credit card before your renewal, you will not receive the $100 statement credit. We know COVID-19 has affected people in many different ways. Please check chase.com/StayConnected for updates and helpful ways to stay connected to your accounts.

Although my results are not completely scientific, Chase appears to only be crediting cardholders whose annual fees are due between 1 April and 1 July 2020.

Note: If you did not receive a message, I would recommend waiting a few days to see if they are sending these messages in batches. If you do not receive a message after a few days, it may be worth a short call to Chase.

IT’S ALL ABOUT THE BOTTOM LINE

Per the message above, it appears this is directly in response to the coronavirus pandemic so I assume the $100 credit timeline may be extended depending on how long it takes before we return to “normal.”

Due to the current situation and (obviously) less travel, many cardholders are tempted to downgrade or cancel their Sapphire Reserve. However, Chase clearly wants to retain CSR cardholders and this credit just made the equation a bit more complicated for many.

Although Chase increased the annual fee to $550 for the Sapphire Reserve, they also added some new benefits to justify the annual fee increase. These new perks included:

• Door Dash DashPass membership for at least one year
• A $60 Door Dash Credit for 2020 and 2021
• Lyft Pink Membership for one year
• 10x Ultimate Rewards (UR) points for Lyft purchases

In addition, the the Sapphire Reserve already comes with an amazing $300 travel credit, thus making it a favorite for many in the points and miles community.

FINAL STAMP

With an effective $450 annual fee again, this makes the decision to keep the Sapphire Reserve an easier choice given the additional perks of the card.

Personally, I think this is a great move by Chase because they are giving a subset of Sapphire Reserve cardholders more incentive to keep their cards open while still minimizing their losses.

Do you have the Sapphire Reserve? Did you receive a message from Chase about the $100 credit? What do you think about this decision?

H/T: Doctor of Credit