Chase Sapphire Preferred Offer - Should I sign up?

[Ryan]

I'm not sure where you're getting that penny a point value from.

If you used the $95 to buy AGR points instead of paying the annual fee, you could buy 3,500 points (for $96.25). If you were smart and used that $95 during a 30% bonus period, you could buy 4,550 for the same $96.25.

There's also word on the street that the annual fee may go up in the near future. Still, with the first year free it's worth getting for the sign up bonus if nothing else. Transfer the points at the end of your year to AGR (or anywhere else you choose) and close the account if you don't want to pay the fee.

 

[printman2000]

I'm not sure where you're getting that penny a point value from.

If you used the $95 to buy AGR points instead of paying the annual fee, you could buy 3,500 points (for $96.25). If you were smart and used that $95 during a 30% bonus period, you could buy 4,550 for the same $96.25.

There's also word on the street that the annual fee may go up in the near future. Still, with the first year free it's worth getting for the sign up bonus if nothing else. Transfer the points at the end of your year to AGR (or anywhere else you choose) and close the account if you don't want to pay the fee.

That is the value, I believe, if you use it in the Chase Ultimate Rewards site. I have been using a Freedom card for years and that is the exchange rate. I would assume the same on this card.

 

[NW cannonball]

The Chase Sapphire card is really good for transfer points. And really good for having the chip. But --

After the first year it costs $95 per year.

How many "points" does that cost?

Keep the no-annual-fee AGR card if you can't justify $95 up-front.

I believe 5,000 points equals $50. So That would mean 9500 points to keep the card per year.

Uh - not - on United - where I have some points -- uh 17000 points is about 170 dollars - with various restrictions and all -- worth less than that --

So check the decimal point -

$95 would be worth not 9500 points, no you would need to get 95000 points to break even on the annual fee.

Like the local government lottery ads -- "It could happen"

 

[printman2000]

The Chase Sapphire card is really good for transfer points. And really good for having the chip. But --

After the first year it costs $95 per year.

How many "points" does that cost?

Keep the no-annual-fee AGR card if you can't justify $95 up-front.

I believe 5,000 points equals $50. So That would mean 9500 points to keep the card per year.

Uh - not - on United - where I have some points -- uh 17000 points is about 170 dollars - with various restrictions and all -- worth less than that --

So check the decimal point -

$95 would be worth not 9500 points, no you would need to get 95000 points to break even on the annual fee.

Like the local government lottery ads -- "It could happen"

As I said in the other response, I was referring to Chase Ultimate Rewards value. You can take 10,000 points and get a $100 statement credit or a $100 gift card.

As for transferring them out of Chase, points values will vary.

 

[Ryan]

I see. That's the rate I'm presented with for things like buying gift cards. 1.25 cents/point when redeeming for travel.

Either one of them is a terrible use of points. They're much more valuable when transferred to a partner like AGR and redeemed for 3-5 (or more!) cents per point.

For example: I want to go WAS-ATL tomorrow. A roomette for my wife and I is $624. But I can use 15,000 points for the both of us, meaning we're getting 4.16 cents of value out of each point.

It gets even better out west - looking at CHI-EMY, the cost of a roomette is $1,061. 20,000 points for that 2 zone gives you 5.3 cents per point. Starting all the way back at TOL, the price jumps to $1,292, but it's still the same 20,000 points. Now we're approaching 6.5 cents of value per point.

All that said, redemption values mean very little when wondering what the cost of the $95 annual fee would be. The relevant rate there is the purchase rate, which for AGR is 2.75 cents per point.

 

[NW cannonball]

Right -- you spend $ 10,000 and get 10,000 points, a restricted $100 value. That's a 1% kickback if my arithmetic is right. Double that for preferred transport and dining. The signup bonus is a good deal.

The annual fee of $95 is how many points you pay up front?

Can anyone do the arithmetic? I'm thinking the $ 95 annual fee -- how much needed spend to even break even?

 

[Ryan]

It's a lot more than $100 in value if you redeem well.

You don't pay any points up front for the annual fee, I'm not sure what you're getting at.

The points earning is slightly different between the two cards - and differences are going to depend completely on what your exact spending works out to be.

The problem isn't the arithmetic, the problem is figuring out how to value the points.

For me, the $95 is worth the flexibility in not being tied to using my points for Amtrak only. I can use them for hotels (regardless of my means of travel) and can use them to fly when I need to fly. Can't do that with the AGR card.

 

[printman2000]

For me, the $95 is worth the flexibility in not being tied to using my points for Amtrak only. I can use them for hotels (regardless of my means of travel) and can use them to fly when I need to fly. Can't do that with the AGR card.

YES. That is the main reasoning behind me getting this card.

 

[NW cannonball]

Right - the flexibility is worth a lot.

But - the $95 fee is - if all you spend is at the 2 points level - you have to spend $4700 on the card just to cover the $95 fee.

Go figure -- what's the flexibility is worth to you

I got the CSP card -- the signup bonus is worth it. The chip and sign is worth something

But the $95 fee -- not so much worth it .

 

[printman2000]

Right - the flexibility is worth a lot.

But - the $95 fee is - if all you spend is at the 2 points level - you have to spend $4700 on the card just to cover the $95 fee.

Go figure -- what's the flexibility is worth to you

I got the CSP card -- the signup bonus is worth it. The chip and sign is worth something

But the $95 fee -- not so much worth it .

For us, we will put everything we can on this card (as we currently do with our Freedom card). I have never been able to get all the points I have earned on the Freedom card to AGR so for me, the $95 is worth it.

 

[Ryan]

But - the $95 fee is - if all you spend is at the 2 points level - you have to spend $4700 on the card just to cover the $95 fee.

This makes no sense to me whatsoever. What are you talking about?

 

[StanJazz]

There is one other Big advantage for the card. It does not have the 3% international fee most cards have, including AGR. I have had the card since Feb 2013 and have saved just over $200 by not paying the 3% I would have if I had uses the AGR card. I have only paid 1 $95 fee in March 2014 so I have come out ahead. I am not even counting all the double points I have received for dining and travel. Most of my international purchases have received 2 points per dollar. Hotels, dining, cabs and Via Rail Canada.

Stan

 

[NW cannonball]

There is one other Big advantage for the card. It does not have the 3% international fee most cards have, including AGR. I have had the card since Feb 2013 and have saved just over $200 by not paying the 3% I would have if I had uses the AGR card. I have only paid 1 $95 fee in March 2014 so I have come out ahead. I am not even counting all the double points I have received for dining and travel. Most of my international purchases have received 2 points per dollar. Hotels, dining, cabs and Via Rail Canada.

Stan

Indeed. The 3% international fee on most cards kinda wipes out the points, but not with the Chase Sapphire. I've got Discover and NFCU which also have no international fee, and there are other cards that also don't - but Discover is not as widely accepted (except in Japan and China - they are allied with JCB) - and NFCU is only available to military (and us lucky relatives of military).

Summing up, the negative on the Chase Sapphire is the annual fee after the first year.

The positives are -

the big signup bonus

double points for any travel and dining spending

the ability to transfer points to Amtrak, United, others,

you can take the points in cash at a penny a point,

no international fee

the annual points rebate

possibly, the chip in the card

and, :unsure: the feel and heft of the thing. It's twice as heavy and twice as stiff as my other cards, I can find it by feel in the dark.

 

[printman2000]

Got mine yesterday and i can sure attest to how heavy/solid the thing is.

What is the chip for? Is that used mostly in other countries?

 

[Devil's Advocate]

The credit card chip is like the metric system. Smart, simple, effective, and almost entirely unknown to Americans. We pay more in transaction fees and processing rates supposedly because of rampant fraud, but the primary reason we have rampant fraud is because the people who could actually prevent it (retailers and banks) refuse to resolve it. Having the chip integrated into a dozen "prestige" cards in a sea of thousands of unprotected cards is nothing more than a tiny baby step toward a real solution. Until American banks and retailers are setup and trained to use the chip for every transaction with every card it's virtually meaningless. Yet another example of where the market has failed to offer a workable solution. Seems to work fine in countries that require a chip though.

 

[Railroad Bill]

Tried to use my card at Walmart yesterday and it would not work. Cashier tried sliding it and then putting it in a slot under the reader. Still no go. It works every other place I have used it. Mgr. Said our readers "do not like these new cards".

Time for Walmart to buy some new readers.

 

[Ryan]

Walmart

I have located the problem!!!

I don' think I've ever had trouble using mine. Lots of cashiers comment on how nice the card is, though.

 

[printman2000]

Tried to use my card at Walmart yesterday and it would not work. Cashier tried sliding it and then putting it in a slot under the reader. Still no go. It works every other place I have used it. Mgr. Said our readers "do not like these new cards".

Time for Walmart to buy some new readers.

Used mine at Walmart yesterday as well. Because they have the chip readers, it did not allow me to slide the card using the magnetic strip. I had to put it into a slot on the bottom of the card reading machine and leave it there. It took maybe 15 seconds for it to do what it needed.

Did they put it in the chip reader and leave it in? Or did they stick it in and immediately remove it? My inclination was to just put it in and immediately pull it out but the instructions on the screen told me to leave the card in the slot.

 

[Railroad Bill]

Tried to use my card at Walmart yesterday and it would not work. Cashier tried sliding it and then putting it in a slot under the reader. Still no go. It works every other place I have used it. Mgr. Said our readers "do not like these new cards".

Time for Walmart to buy some new readers.

Used mine at Walmart yesterday as well. Because they have the chip readers, it did not allow me to slide the card using the magnetic strip. I had to put it into a slot on the bottom of the card reading machine and leave it there. It took maybe 15 seconds for it to do what it needed.

Did they put it in the chip reader and leave it in? Or did they stick it in and immediately remove it? My inclination was to just put it in and immediately pull it out but the instructions on the screen told me to leave the card in the slot.

Yes, I believe they may not have left the card in the slot long enough. The clerk did not understand how the slot worked and the manager did not seem to help much either. Will need to remember to leave it in the slot until the proper o.k is received. Thanks for the info.

 

[NW cannonball]

My CSP works always in the US by sliding the mag strip. The only place that it worked where they used the chip thingy was a BP gas station for $5 snacks and soda, and it worked there also.

Haven't tried Wal-mart - maybe they have a problem with transitioning new readers.

Will try at local Wal-mart and see how it goes

 

[printman2000]

I assumed because their machines offer the chip reader, it does not allow the magnetic strip to be used since that would make the security of the chip pointless.

Sent from my iPhone using Amtrak Forum

 

[sechs]

Summing up, the negative on the Chase Sapphire is the annual fee after the first year.The positives are -

the big signup bonus

double points for any travel and dining spending

the ability to transfer points to Amtrak, United, others,

you can take the points in cash at a penny a point,

no international fee

the annual points rebate

possibly, the chip in the card

and, :unsure: the feel and heft of the thing. It's twice as heavy and twice as stiff as my other cards, I can find it by feel in the dark.

I think that you missed the 7% annual points bonus.

While Chase will fairly easily give a retention bonus on the Ink cards, they rarely offer any points or cash back for paying the annual fee on the CSP. If you have a business, that's something to keep in mind.

 

[NW cannonball]

I assumed because their machines offer the chip reader, it does not allow the magnetic strip to be used since that would make the security of the chip pointless.

Sent from my iPhone using Amtrak Forum

I never assume anything - especially about credit cards -

Most places I've been, if the card wont scan, stripe or chip, the cashier can key in the number and use whatever their machine displays for confirmation.

Always carry cash - about 3 days worth - as a backup.

Here in the USA - the cost of fraud is covered by the big big fees the card processors collect from the retailers.

All details about that are trade secrets.

Sometimes, nah, usually, installing new tech here in the USA -- involves unmotivated front-line cashiers and tech-incompetent CIO's

grumble, grumble

 

[Railroad Bill]

Back to Walmart today and everything worked just fine. Clerk said the associates are being trained to make sure the card stays in the slot until the notice appears to remove it on the screen. But so far, Walmart is the only establishment I have used the card that requires using the slot. All others scanned just like a regular card. :huh:

 

[printman2000]

Funny, my card did it work at Walmart yesterday. Kept saying read error. I then tried sliding and it took it, but the cashier had to enter the security code.

Sent from my iPhone using Amtrak Forum