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Using your hard-earned Ultimate Rewards points to shop on Amazon was already a bad redemption — and it’s going to get worse. Chase has shared that, as of September 1, you’ll be able to redeem Ultimate Rewards points at 0.8 cents per point, down from 1.0 cents per point currently. This means that for every dollar you spend on an Amazon purchase, you’ll need to redeem 125 Ultimate Rewards points instead of the current 100.
Other major points programs allow you to redeem points for purchases on Amazon as well, but at similarly poor rates. Citi ThankYou points can be redeemed for 0.8 cents per point — the same value as Ultimate Rewards points after September 1. If you want to redeem your American Express Membership Rewards points for Amazon purchases you’ll only get 0.7 cents per point in value.
Keep in mind that according to TPG’s valuations, Chase Ultimate Rewards are worth 2.1 cents per point, Citi ThankYou points are 1.6 cents per point and Amex Membership Rewards are 1.9 cents per point. With each program, if you choose to redeem your points for Amazon purchases you’ll only be getting at most half of the value that you could from redeeming your points for travel or other rewards.
Have you redeemed rewards points for purchases on Amazon?
Featured image courtesy of Shutterstock.
NEW INCREASED OFFER: 60,000 points! With great travel benefits, 2x points on travel & dining and a 60,000 point sign up bonus worth up to $1,200 in value, the Chase Sapphire Preferred is a great card for those looking to get into the points and miles game. Here are the top 5 reasons it should be in your wallet, or read our definitive review for more details.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- Chase Sapphire Preferred named "Best Credit Card for Flexible Travel Redemption" - Kiplinger's Personal Finance, June 2018
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- No foreign transaction fees
- 1:1 point transfer to leading airline and hotel loyalty programs
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
- No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards
Know before you go.
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