Chase Launches New Rewards Program And Premium Offering

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JPMorgan Chase & Co. today announced a broad new credit card rewards program for its core Freedom cardholders, and it introduced a premium-level Sapphire card. Both leverage new online travel, entertainment and shopping hubs for earning and redeeming points. Chase also is giving Freedom cardholders the option to pay a $30 annual fee and Sapphire cardholders the option to pay $95 annually for special privileges to earn and redeem points. Rob Rosenblatt, Chase general manager of customer loyalty, tells CardLine the program is designed to make Chase "a destination" for cardholders by giving them more ways to earn and redeem points across a broader spectrum of merchants. "These are interesting times, to say the least, and customers are being more careful about every dollar they spend," he says. "So we want to give them more reasons to use their Chase card." The program, dubbed Ultimate Rewards, continues to enable basic Freedom cardholders to earn one point per dollar spent and three points per dollar spent on a rotating set of retail categories such as home improvement, dining and department stores. Cardholders now also may earn two points per dollar spent on air travel when using Chase's new online booking service and up to 10 points per dollar on merchandise purchased online through Chase's new Ultimate Rewards Bonus Mall, where Amazon.com is providing merchandise and fulfillment on more than 3 million merchandise items. Cardholders also may redeem points for gift cards from 65 different merchants, restaurants, travel and entertainment providers. Beginning later this summer, Freedom cardholders also may opt to pay a $30 annual fee to earn three points per dollar spent on all gas, grocery and fast-food purchases. Chase Sapphire, the company's new premium card offering concierge-level travel and customer service, also carries the Ultimate Rewards program for no annual fee. Later this summer, Chase will offer Sapphire cardholders the option to pay $95 per year to transfer their Ultimate Rewards points into travel-rewards programs Marriott International, InterContinental Hotels Group, Continental Airlines and British Airways offer. Chase has no plans to add debit cards to the Ultimate Rewards platform, Rosenblatt says. Ken Paterson, a director with Mercator Advisory Group, says Chase's new rewards program demonstrates its desire to "re-engage" credit card customers in rewards programs at a time when overall card spending is declining. "The fact that Chase has not watered down the core value of points, and they don't require any tiers or thresholds for customers to participate, is significant," he says. "They are making a move at a critical time to keep customers engaged in using their credit card."