Bleh – These Two Chase Credit Card Developments Stink

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Chase Credit Card Developments

I’ve historically found Chase boring, but the overall-good with their cards outweighs that.  My Chase activity primarily revolves around Ink Business Cash, Freedom, a bit of Sapphire Reserve and IHG Premier earning, and a whole bunch of Pay Yourself Back redemptions.  My wife and I left new Chase accounts behind many years ago and have no regrets.  But we generally follow Chase credit card developments, especially ones which impact the above products.  Two recent changes rolled out, and we’re not fans of either.

The Terrible Chase Freedom Q2 Categories…

…encourage irresponsible financial decisions, in my view.  In short, the second quarter 5x bonus categories are Amazon and select streaming services; you can check out the full info in DDG’s article.  I’ll start with Amazon.  Full disclosure, my wife and I aren’t huge Amazon fans – we got rid of our annual Prime membership five years ago, and it’s been a net-win. (We’ll pick up a short sub with a free/promo rate every now and then, though.)   In our situation, spending $1.5k within a three-month period on Amazon isn’t a wise move.  We simply don’t need that many staples or creature comforts from Amazon to max out the 5x in this category.  If I actually wanted to hit $1.5k spend this way, I’d be trying to rationalize unnecessary items or time-shift spend to gift cards which I really don’t need any time soon.

But, of course, many individuals, especially families, can easily and responsibly spend $1.5k on Amazon within this three-month period.  And it certainly makes sense to use the Freedom for all Amazon spend, right?  Not necessarily.  That’s because individuals can easily discount Amazon spend at any time they wish via discounted Amazon gift cards, often leveraging grocery store fuel points programs.  Depending on those promos, individuals can save 7% or more on the gift card before incorporating any earning on the credit card spend.  Depending on your Chase redemption strategy, that’s better or at least competitive with other options, particularly for those who primarily redeem via Pay Yourself Back.  But Hyatt worshippers may laugh at this entire paragraph.

The same goes for the streaming services category.  Anyone with significant spend in this category is probably paying way too much for streaming.  On the flip side, many of us have full plates with current services which we obtain “free” with other benefits like the Amex Platinum Digital Entertainment Credit.  Even worse, it’s “select” streaming; certain reasonably-priced services, such as Philo, do not participate.  This is an empty category for many of us.

Finally, these two categories would be more forgivable if Chase included another broader 5x category.  Indeed, this has generally been the case in the past – let’s hope it returns in the future!

Falling Out of Love with the Chase Sapphire Reserve…

…DoorDash benefits is just as easy as falling in love with them, it turns out.  First, I should remind that the previous version of the $5 monthly benefit is no longer stackable for three months.  No longer can patient, attentive Reserve cardholders get a “free” $15 meal every quarter.  The monthly $5 credit for restaurant orders is now a use-or-lose benefit.  Making things less user-friendly, DoorDash users must remember to toggle on the “Chase monthly benefit” to use this credit each month – it’s only available on the very last screen where one clicks “Place Order.”  Chase and DoorDash are seemingly betting many users will forget to do this, conveniently in their favor.

It doesn’t end there, though.  Chase’s much-touted, twice-monthly $10 off DoorDash non-restaurant orders has gotten trickier, too.  When I’ve selected Royal Farms under convenience stores in the app, the Sapphire Reserve’s “$10 off monthly benefit for 2 grocery & retail offers” prominently displays.  The app proclaims this “Chase monthly benefit” can be applied at checkout.  Unfortunately, this $10 off isn’t an option in all of the recent cases I’ve attempted (it previously worked at this location).  I noticed it worked at other convenience stores, though.  But again, when it can be used, individuals must always remember to toggle on the switch in order to use the $10 benefit.

The $5 monthly benefit isn’t what it once was.  It’s no longer stackable every quarter and doesn’t automatically apply.  The twice-monthly $10 off non-restaurant orders is more convoluted, containing inconvenient exclusions.  Both developments are clearly negative, and I’ve done a complete 180 on the $10 non-restaurant order perk.  It’s pretty much useless in my case.  Perhaps I’m not alone.

Masochists can check out the full terms of the Chase Sapphire Reserve’s DoorDash benefits here.

Chase Credit Card Developments – Conclusion

Both the Freedom and Sapphire Reserve offer enough elsewhere, so I’ll keep them each on-hand for the foreseeable future.  The bank is probably betting this is the case for the vast majority of such cardholders.  Chase will make cuts here and there, but not in a significant enough fashion to drive a noticeable amount of customers away.  While I’m standing pat for now, I’ll continue watching and letting you know of any positive or concerning developments.

How are you feeling about Chase’s recent moves?

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