JP Morgan Chase & Co. and Southwest Airlines Co. have updated their rapid rewards credit card program to include a wider scope of rewards that includes no blackout dates or seat restrictions, Chase announced Jan. 11.
The enhanced program includes the upgraded Rapid Rewards Plus Card, the Rapid Rewards Signature Business Card and the new Rapid Rewards Signature Card, according to Chase, which issues the Visa-branded cards.
The Rapid Rewards Plus and the business cards carry a $59 annual fee. New customers will pay $69 per year for the Plus card. The new Premier card carries a $99 annual fee.
The updated program officially launches on March 1, at which time all existing cardholders’ accounts will be updated, Kian Conley, general manger of the Southwest Program for Chase, tells PaymentsSource. Any points in existing accounts also will be moved over to the upgraded card, he adds.
The card program will enable cardholders to earn points at the same rate as the existing program. They earn two points per dollar spent on all Southwest purchases, two points per dollar spent on purchases from participating Southwest partners such as hotels and car rentals, and one point per dollar spent on all regular non-Southwest purchases, Conley says.
Among the important upgrades, Southwest will enable cardholders to redeem points for products and services other than airline tickets, Conley says. Cardholders also may redeem points for hotel stays, international travel, and gift cards offered by more than 45 merchants, including Best Buy Co. Inc. and Target Corp., he notes.
The “enhancements will now give cardholders more reasons to use the card for travel and everyday purchases,” Conley says. Moreover, the ability to redeem offers cardholders a quicker way to earn flight benefits, he says.
Cardholders also may purchase points in blocks of 1,000 with a minimum purchase of 2,000 points, according to Southwest. Southwest did not disclose the price to purchase points.
Additionally, cardholders will earn 25% more credits on their anniversary of opening a card account, Conley says. Rapid Reward Plus cardholders previously earned 2,400 points each year and now will earn 3,000 points, and Premier cardholders will earn 6,000 points, he explains.
Premier cardholders also will receive 1,500 points toward A-List or A-List Preferred status for every $10,000 they spend with their cards, Conley says. The Rapid Rewards A-List program is Southwest’s frequent-flyer club. Consumers who fly 16 roundtrip flights in 12 months earn A-List status.
Several issuers are beginning to “update and reconfigure rewards programs to earn more profit and increase spend among existing rewards cardholders,” Ron Shevlin, a senior analyst with Boston-based Aite Group LLC, tells PaymentsSource.
Many issuers also are targeting travel-based rewards programs because most of these cardholders “tend to be more affluent, with higher credit limits, or business travelers,” Shevlin says. And if the new upgrades are attractive enough, then the card’s sponsors hope cardholders will spend more, he contends.
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