Chase Devaluing Ultimate Rewards When Redeeming On Amazon

We’re reposting this because an e-mail was sent out to cardholders. Keep in mind this was never a good option, you were always better off redeeming for statement credit and then making your purchase (that way you’d earn credit card rewards, you can earn up to 5x/5% on Amazon). This way you can also use our Amazon link to say thank you for maintaining this site.

Chase has sent out an e-mail to  Chase Ultimate Rewards earning cardholders (Chase Freedom, Chase Freedom Unlimited,  Chase Sapphire, Chase Sapphire Preferred, Chase Ink Plus, Chase Ink Cash) changes to redeeming points on Amazon.com. Starting on September 1st, the redemption value for $1 will be changing from 100 points to 125 points (25% increased). Points will also be debited at the time your order is placed, rather than when an item ships.

This is a strange move by Chase, as you can redeem Ultimate Rewards points for $1 = 100 points in the form of statement credit. This means their is literally no reason why anybody should be redeeming on Amazon (this was already the case as you would have been better off charging the items to your card and earning rewards and then redeeming points for statement credit). Chase likely knows that cardholders redeeming for Amazon aren’t savvy consumers or simply don’t care and plan to take advantage of this.

Hat tip to Danny Deal Guru & /r/churning

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19 Comments
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agnes
agnes (@guest_405959)
May 13, 2017 15:39

Chase’s action is so sneaky and underhanded, it gives me the chills. So, just boycott chase. They’ll get it at some point and fire the idiot who proposed the idea of devaluing reward points at Amazon.

Mark O
Mark O (@guest_288363)
August 25, 2016 22:08

Only an idiot would claim them for less then a cent versus just getting cash back and then charge it….but there are a lot of sheep out there.

chuck
chuck (@guest_288328)
August 25, 2016 20:44

got the email from chase today about it really 2 emails same thing for my freedom then for my ink

adam
adam (@guest_288324)
August 25, 2016 20:41

The did this because they want you to use credit card and charge merchants fees to amazon.

Sue
Sue (@guest_279243)
July 28, 2016 09:39

It’s interesting that this happens soon after Chase started offering 5% cashback at Wholesale Clubs (Costco, Sam’s etc). If only Chase is affected and other cards don’t also, over time, get points devalued at Amzn then maybe that’s somewhere behind what is going on.

(No email from Chase received here yet).

Jeff H
Jeff H (@guest_279190)
July 28, 2016 05:35

I know from our email exchanges, you guys fact check, but as of this writing, I do not have such an email from Chase.
AND
My Chase Untimate Rewards screen says as of this writing:
Your 28 points are currently worth $0.28 at Amazon.com
Instantly redeem your points to pay for all or part of your eligible Amazon.com orders at checkout. It’s easy!
=========
Apply points works for me so that I do not have to accumulate $20.00 Ultimate Rewards in order to collect the statement credit.
========
When does this take effect according to your sources?

Besides, the DiscoverCard 5% CashBack is in effect at Amazon and it has apply points also.

Duane
Duane (@guest_279194)
July 28, 2016 05:49

September 1st

Jeff H
Jeff H (@guest_280985)
August 3, 2016 21:31

The bad news (Chase UR points reduction on Amazon) you warned about arrived this evening.

NinjaX
NinjaX (@guest_279152)
July 28, 2016 00:35

Did you hear any reason for this from your source? Im certain its not Chase trying to rape savvy customers. I dont know what the contract with Amazon looks like, but AMZ is tough with their vendors. Just like Walmart. If anyone has done corporate business with Walmart, you know their balls are made of alien alloy. Redeeming points on Amazon.com is NOT the same as JPM giving you statement credit for a loan. This one side devaluation is key.

Winston
Winston (@guest_279112)
July 27, 2016 22:15

You gotta thank those unsavvy customers. Their unsavvy behaviors enable Chase to profit so that the churners can continue to churn under Chase’s business model.

Parkerthon
Parkerthon (@guest_279065)
July 27, 2016 20:48

The credit card reward program version of a casino sucker bet. They must already be having great success with consumers cashing in their points on Amazon if they’re making it even worse of a gouge. Shameful, but not surprising from the bank that brought you 5/24.

Dima
Dima (@guest_279081)
July 27, 2016 20:58

Can’t blame Chase for trying to protect themselves from churners with 5/24, but this change is just an extra rip-off for folks with cards like Freedom who don’t know how to maximize UR benefits.

Aahz
Aahz (@guest_279059)
July 27, 2016 20:16

The Chase Slate doesn’t belong on that list as it doesn’t earn URs.