There’s no doubt that COVID-19 is having an impact on dining, travel, and the economy as a whole. That’s why it’s nice to see banks doing these little things. Such as how Chase is providing a CSR annual fee credit this year.
As you’ll recall, earlier this year, Chase decided to increase the annual fee on the Sapphire Reserve to $550 – up $100 from the previous $450. And, to offset that increase, they added some questionable benefits, such as:
- DoorDash DashPass subscription for two years
- Lyft Pink subscription for one year
- 10x points on Lyft purchases
Those benefits are totally not worth the upgrade, in my opinion. But, I eventually came to the conclusion that the card is still worth it for me. After all, I was projecting earning at least 21,000 points with the cards through regular spend alone. And that translates into a cash value of about $315. Combine that with the $300 annual fee, and the total value I expected to receive from the card is at least $615. That doesn’t even take into account, by the way, other perks like the Priority Pass membership and other discounts. For example, I was supposed to receive a few hundred dollars in Silvercar discounts this year too.
COVID-19 Hits
Well, I don’t have to tell you guys that I have seriously curtailed my travel plans for the year. So, at this point, those Silvercar discounts are no longer happening for me. Plus, I’ve also won’t be earning points from those rentals anymore, nor will I earn points from the hotel stays and restaurant tabs. In total, I estimate that I’ve canceled or will not do somewhere near 10,000 points worth of travel and restaurant spend. Ouch.
The above assumptions, by the way, are assuming the current social distancing measures remain in effect only through the end of April. A timeline that is probably not going to happen – in my opinion, we’ll likely be living like this at least through the end of May. And if that really does end up being the case, then I’ll lose out on even more points.
So, with the spend I’m not doing with my Sapphire Reserve, my return from the card is dropping below $450 this year. Bleh.
CSR Annual Fee Credit
Given the reduced earnings, I was happy to see an email from Chase in my inbox yesterday. Then, upon logging into my account, I saw the full text of the message – they’re giving me a $100 statement credit applied to my annual fee this year, which effectively reduces it back down to $450. It’s a small gesture, yes, but a much appreciated one.
UPDATE: apparently, the fee credit is only valid for cardholders with a renewal date through July 2020. I largely expect this to change, though, and quarantines and social distancing measures get extended beyond April.
Chase is Providing a CSR Annual Fee Credit, Final Thoughts
Someone at Chase had the foresight to recognize that people wouldn’t be spending as much on their Sapphire Reserve this year. And, as a result, the value of the card to many wouldn’t be quite as high, making the new, higher annual fee even less palatable. So, good on Chase for taking action like this.
Personally, I was planning on keeping my card despite the lackluster value proposition this year. After all, this situation is only temporary. But, I do greatly appreciate the gesture!