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The Chase Sapphire Reserve® Card has quickly become one of the most popular premium travel rewards credit cards. Not only does the card have an excellent welcome bonus, but it offers compelling perks and points that make it worth holding onto long term.
There are many things to love about the card, like the 50,000 point welcome bonus, triple points on dining and travel, a Priority Pass membership with unlimited guesting privileges, Visa Infinite perks, car rental and travel coverage, and much more. However, in this post I wanted to focus on the Chase Sapphire Reserve’s $300 annual travel credit.
This is the single greatest perk of the card, as it essentially earns you back two-thirds of your $450 annual fee every year, and the way I view it, this means that the card only really costs you $150 per year to hold onto.
Here’s what you need to know about this perk:
What is the Chase Sapphire Reserve $300 travel credit?
Every cardmember year, the Chase Sapphire Reserve offers a $300 travel credit. This credit is applied to purchases automatically — there’s no need to register — and you can use it over as many purchases as needed until the credit is completely used up (so that can be a single $300 purchase, 10 purchases of $30 each, etc.). This comes in the form of a statement credit that posts shortly after you make your purchase.
What qualifies as travel for the Chase Sapphire Reserve $300 travel credit?
What purchases will automatically be credited? The Chase Sapphire Reserve defines travel as including the following purchases:
Merchants in the travel category include airlines, hotels, motels, timeshares, car rental agencies, cruise lines, travel agencies, discount travel sites, campgrounds and operators of passenger trains, buses, taxis, limousines, ferries, toll bridges and highways, and parking lots and garages.
Note that this is the same definition they use for the categories in which they offer 3x points. As you can see, it’s not just traditional travel purchases that get reimbursed, but also things like Ubers, parking, trains, buses, and more. You can easily use the $300 credit in your day-to-day life.
When do I get my $300 Chase Sapphire Reserve travel credit?
As soon as you activate the Chase Sapphire Reserve you can immediately start using the travel credit. There’s no waiting period required.
In subsequent years, your $300 travel credit is valid starting on your anniversary account date, which would be 12 monthly billing cycles after you opened the card.
How quickly does the Chase Sapphire Reserve $300 travel credit post?
The credit should post almost instantly after a purchase posts to your statement. For example, take the below transaction that posted on April 2. As you’ll see, the credit was automatically applied on the same day. With this benefit you don’t have to wait for several weeks for the credit to post, or anything.
Does the $300 travel credit impact the minimum spend requirement?
To earn the Chase Sapphire Reserve welcome bonus of 50,000 Ultimate Rewards points, you have to spend $4,000 within three months. So how does the $300 travel credit play into that? Say you spend a total of $4,000, and $300 of that amount is travel, meaning that you’re credited $300. Would you still qualify for the bonus? Yes, absolutely. The total amount you spend (minus the annual fee) counts towards the minimum spend requirement. So even if you get the $300 credit, you’d still have completed the minimum spend.
Do you earn triple points for reimbursed transactions?
One of the great things about the Chase Sapphire Reserve is that it offers triple points on dining and travel. So if you spent $300 on travel, you’d ordinarily earn 900 Ultimate Rewards points for that. Even when the card reimburses that amount, you’re still earning the triple points on that transaction, which is pretty awesome.
What happens if you refund a transaction that’s reimbursed?
If you refund a purchase that was reimbursed, then the statement credit should similarly be reversed, and the amount should automatically be applied towards a future travel transaction. However, some report that the statement credit doesn’t get reversed, so this seems like a case of “your mileage may vary.”
How can I track how much of my $300 travel credit I’ve used?
When you go to the Ultimate Rewards homepage and log into your account, look at the very right of the page, where you’ll see a counter that shows your progress towards spending with the $300 annual travel credit. What’s also cool about this page is that it shows you when your next travel credit will kick in — in my case it’s after my statement closing date in December 2018.
Do most people use the full $300 travel credit?
There’s no published data on this, though I’d have to assume that a vast majority of people with the Chase Sapphire Reserve are fully utilizing the travel credit. That’s why I feel comfortable suggesting that for most users, it lowers the real annual “out of pocket” on the card by about two thirds.
Let me take it a step further — if you don’t use the full $300 travel credit then this card simply isn’t for you. There are better cards out there for someone who doesn’t spend at least $300 per year on taxis, Ubers, subways, trains, hotels, airlines, etc.
If everyone can use this so easily, why doesn’t Chase just lower the annual fee to $150 instead?
This is a logical enough question. If everyone is so easily using this credit, then why not just lower the annual fee to $150, which would probably make the card even more popular? There are two reasons for this:
- Chase wants more wallet share — Chase wants you to use your card as much as possible, and they know that if they’re reimbursing you for certain purchases, you’re more likely to actually use your card and have it at the top of your wallet
- Chase doesn’t want to cannibalize their portfolio — Chase also has the Chase Sapphire Preferred® Card, which has a $95 annual fee (waived the first year) and is also rewarding; they don’t want to completely cannibalize that card, so by going after two very different consumers in terms of annual fees, they’re able to do that
Many people are deterred by the Chase Sapphire Reserve’s $450 annual fee. However, as I’ve often said, what makes this card so special is that it’s a $450 annual fee card for people who don’t usually pay $450 annual fees.
That’s because in reality, this card should be “costing” most people $150 per year, after factoring in the $300 of value they’ll get out of the travel credit. This credit isn’t a gimmick like you might find on some other cards, where you have to register, can only be reimbursed for very specific transactions, etc.
Instead with this benefit all travel coded purchases, up to $300 per cardmember year, will be reimbursed. If you have this card then you should get full value out of this awesome benefit.
“Paying” just $150 per year for triple points on dining and travel, a Priority Pass membership with unlimited guesting privileges, the ability to redeem points for 1.5 cents each, and much more, is a bargain. That’s what makes the Chase Sapphire Reserve so great.