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The Chase Sapphire ReserveSM is the hottest luxury rewards credit card out there right now. Its leaked release mid-August has generated so much buzz and demand that issuing bank JPMorgan Chase ran out of the engraved metal cards in 10 days, sending temporary plastic cards to clamoring masses.
With the release of the card, which offers mucho points for travel for a hefty $450 annual fee, it’s clear that Chase wanted to beat Amex, who has owned the luxury reward card market for decades with its Platinum Card® from American Express. And it should, since it’s the no. 1 bank in the world right now. It should have the no. 1 card in the premium market. Not no. 2 or no. 3 (sorry, Citi Prestige®).
The viral launch of the Chase Sapphire ReserveSM was unprecedented, and Chase spent no money except for minor bounty payouts to bloggers who link to card sign up from their site. How the world is changing. Chase used to spend millions for a new card launch. Now they rely on bloggers who spread it by word-of-mouth.
People are excited about the 100,000 bonus sign-up points, which is about double what other reward cards offer and equates to about $1,500 in free travel. Also the redemption is worth 1.5 cents unlike the other Chase cards worth 1.25 cents when travel is redeemed through Chase Ultimate Rewards Travel Center. Plus, the 3X points earned for travel and restaurants make this card a step above the rest.
The card is metal, and yes this is sexy. But Ritz Carlton is metal. Sapphire Preferred is metal and the Chase Palladium card is metal. This is not the only metal card in town. When my husband got the Ritz-Carlton card, the bank had run out of metal cards and he carried plastic until he could get a metal card.
I just got approved for the Chase Sapphire ReserveSM. I already have the Chase Ink Plus for Business card with 100,000 points that I can combine with my new 100,000 points. That is worth a couple round-trip tickets in business class, so I’m excited for the bump in bonus points.
The issue for Chase is going to be in the next week or two when bloggers move on and don’t want to talk about the card anymore, and, more tellingly, next year when Chase wants cardholders to pay the $450 annual fee for the second time. Most of the “gamers” will have completed their $300 travel credit before 2017 and then an additional time in early 2017 to get a total of $600 in travel credits, giving them a profit of $150 from the card. Their final move will be to cash out their Ultimate Rewards points for travel and move on to cards with lower annual fees and high sign-up bonuses.
But, one thing is for sure. Chase has upped the ante in the premium credit card game, giving those who sign up an incredible deal and opening doors for other card competitors.
We think that there are some great premium credit cards in the marketplace. Do you have any others that you would like to add? We at Point Savvy welcome your feedback and insight. Please share.
Chase Sapphire ReserveSM
- New! Earn 100K bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $1,500 toward travel when you redeem through Chase Ultimate Rewards®
- $300 Annual Travel Credit as reimbursement for travel purchases such as airfare and hotels charged to your card
- 3X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases. Plus, no foreign transaction fees
- Get 50% more value when you redeem your points for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 100,000 points are worth $1,500 toward travel
- 1:1 point transfer to leading airline and hotel loyalty programs
- Access to 900+ airport lounges worldwide with complimentary Priority Pass™ Select membership
- Up to $100 application fee credit for Global Entry or TSA Pre√®
- No blackout dates or travel restrictions – as long as there’s a seat on the flight, you can book it through Chase Ultimate Rewards
Balance Transfer Fee