If you’re a Chase Ultimate Rewards cardholder, you already know the incredible value these points can unlock. However, are you truly maximizing your returns? One redemption option that deserves your attention is Chase’s Pay Yourself Back program. Let’s explore what it is, how it works, and whether it’s the right choice for you this quarter.

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What Exactly is Chase Pay Yourself Back?

Back in 2020, when travel was a distant memory for many, Chase introduced Pay Yourself Back as an alternative redemption method within its Ultimate Rewards program. Initially designed to provide value beyond travel redemptions, this option allows you to redeem points to offset purchases in specific categories. Think of it as getting a statement credit for everyday spending.

Now, while I generally strive for outsized value from my points by transferring them to airline and hotel partners for premium travel experiences, I recognize that isn’t always feasible or desirable. Sometimes, a straightforward, no-fuss redemption is exactly what I need. That’s where Pay Yourself Back shines. For example, if I have a large purchase that I’d rather pay off directly, using points through Pay Yourself Back can be a great way to do so without sacrificing too much value.

Recently, Chase has expanded the availability of Pay Yourself Back to certain co-branded airline cards, such as the Aeroplan Credit Card, United Airlines cards, and Southwest Airlines cards. This means you can get potentially better redemption rates on travel-related categories than you might otherwise get booking travel traditionally with your rewards.

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Eligible Purchases and Redemption Values

So, what can you actually use Pay Yourself Back for? The eligible categories and redemption values vary depending on the specific Chase card you hold and the promotional period. For example, for Q3, the eligible categories are valid through September 30th. Here’s a general overview:

| Card | Redemption Value | Current End Date | |———————————————-|—————————————————————————————————————————————————————————————————————————————————————————————————————————–|—————————————-| | Chase Sapphire Reserve® | Select charities: 1.5 cents per point. Gas stations, groceries, home improvement stores and cardholder annual fee: 1.25 cents per point | Sept. 30 | | Chase Sapphire Preferred® Card | Select charities: 1.25 cents per point. Cardholder annual fee: 1.1 cents per point | Sept. 30 | | Chase Freedom Flex®/ Chase Freedom Unlimited® | Select charities: 1.25 cents per point | Sept. 30 | | Ink Business Preferred® Credit Card/Ink Business Cash® Credit Card/Ink Business Unlimited® Credit Card | Select charities: 1.25 cents per point | Sept. 30 | | Aeroplan Credit Card | Travel purchases (up to 200,000 points or $2,500 annually) and cardholder annual fee (only purchases made at select merchants within 90 days before the redemption request date are eligible): 1.25 cents per point. Dining at restaurants, grocery stores (excluding Target, Walmart and wholesale clubs), home improvement stores, gas stations, select department stores and select utilities: 0.8 cents per point | Dec. 31 for home improvement stores, gas, select department stores and select utilities (dining at restaurants and grocery stores are ongoing categories) | | United Airlines personal and business credit cards | Cardholder annual fee: 1.35-1.5 cents per mile (based on which card you have). United airfare purchases made directly with the airline of at least $50: 1 cent per mile | Dec. 31 | | Southwest Airlines personal and business credit cards | Cardholder annual fee within 90 days of transaction date: 1 cent per point | Sept. 30 | | Marriott Bonvoy Bold Credit Card| Travel purchases made directly with airlines or Marriott Bonvoy hotels (up to $750 total per year): 1 cent per point | Ongoing perk of the card | Disney credit cards| Purchases made at select U.S. Disney locations in Disney Parks and Resorts, Disney store and outlet locations in the U.S., shopDisney.com, DisneyPlus.com, Hulu.com and ESPNPlus.com in the past 90 days: 1 Disney Rewards Dollar per dollar Those with a Disney® Premier Visa® Card can redeem Disney Rewards Dollars toward airline purchases with any airline at the rate of 1 Disney Rewards Dollar per dollar| Ongoing; no specific end date |

It is important to note that for the Aeroplan Credit Card, the value you get for dining, grocery, home improvement, gas and utilities will depend on the select merchants that you use your credit card at. It is important to review the terms and conditions and select merchants available on the chase website or app.

For example, with my Chase Sapphire Reserve, I can redeem points for 1.5 cents each toward donations to select charities, or 1.25 cents per point toward gas stations, groceries, home improvement stores and my annual fee. Now, 1.5 cents per point might not be the absolute highest possible valuation I could theoretically achieve by transferring to partners and booking a first-class flight, but it’s a very respectable return for a simple redemption. In fact, donating to charities I already support is a great use of rewards.

The list of eligible charities is extensive and includes organizations like the American Red Cross, Feeding America, Habitat for Humanity, and UNICEF USA. So, if you’re planning to donate to any of these causes, using Pay Yourself Back is a fantastic way to stretch your points further.

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Redeeming Your Points: A Step-by-Step Guide

The process for redeeming your points through Pay Yourself Back is incredibly straightforward. It is easy to do this through the Chase mobile app or on your desktop. Here’s how:

1. Log in to your Chase account: Access your account through the Chase mobile app or website. 2. Navigate to “Pay Yourself Back”: In the redemption menu, select the “Pay Yourself Back” option. 3. Review Eligible Purchases: You’ll see a list of eligible purchases from the past 90 days that qualify for redemption. 4. Select Your Purchases: Choose the purchases you want to offset with your points. Remember, you can redeem for the full purchase amount, provided you have enough points. 5. Confirm and Redeem: Review the redemption value and the number of points required, then confirm the transaction. 6. Receive Your Statement Credit: Your statement credit should appear on your account within three business days.

I appreciate how easy Chase has made this process. The ability to redeem points for purchases made up to 90 days prior gives me flexibility and allows me to plan my redemptions strategically.

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Pay Yourself Back vs. Traditional Statement Credits

Chase has always offered the option to redeem points for statement credits, but this is distinct from Pay Yourself Back. To redeem points for a standard statement credit, you select the “Cash Back” option in the Ultimate Rewards portal.

The key difference lies in the redemption value. While Pay Yourself Back offers potentially higher values (like the 1.5 cents per point for charitable donations with the Chase Sapphire Reserve), standard statement credits are typically fixed at 1 cent per point.

While 1 cent per point isn’t terrible compared to other issuers (Amex offers only 0.6 cents per point for cash back, and Capital One lags behind at 0.5 cents), it’s still lower than the Pay Yourself Back rates. Therefore, if you’re considering a statement credit, always check if your purchases qualify for Pay Yourself Back first.

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Is Pay Yourself Back Right for You?

So, is Pay Yourself Back a good use of your rewards? The answer, as always, depends on your individual circumstances and preferences. Consider these factors:

* Your Redemption Goals: Are you primarily focused on maximizing value for premium travel experiences, or are you seeking a simple and flexible way to offset everyday spending? If the latter, Pay Yourself Back could be a great fit. * Your Point Balance: Do you have a large balance of Ultimate Rewards points that you’re not planning to use for travel in the near future? Pay Yourself Back can be a way to put those points to work now. * Eligible Categories: Do you regularly spend in the eligible categories for your Chase card? If you’re a Chase Sapphire Reserve cardholder who spends a lot on groceries or gas, the 1.25 cents per point redemption value could be quite appealing. * Alternatives Considered: Have you considered transferring your Chase points to travel partners? For example, you could transfer your points to United Airlines to book a flight to a destination you have always wanted to visit. * Promotional Offers: Take advantage of all promotions offered by Chase. For example, some Southwest cards currently offer a 1 cent per point redemption when redeeming for your annual fee.

For me, Pay Yourself Back serves as a valuable tool in my rewards arsenal. While I still prioritize travel redemptions, I appreciate having the option to offset purchases in specific categories, especially when the redemption values are competitive. Furthermore, given how the world is constantly changing, it never hurts to diversify your plans and options.

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Final Thoughts

Chase’s Pay Yourself Back program provides a flexible and valuable redemption option for Ultimate Rewards cardholders. By understanding the eligible categories, redemption values, and redemption process, you can make informed decisions about how to best use your points. So, take a look at your recent spending, explore the Pay Yourself Back options available to you, and see if it’s the right choice to maximize your rewards this quarter!