Maximizing cash back with Chase’s Pay Yourself Back feature

Dec 24, 2020

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Here at TPG, we value Chase Ultimate Rewards points at 2 cents apiece, thanks to the program’s fantastic travel partners. In the past, I’ve transferred points instantly to United at a 1:1 ratio, then booked Lufthansa first class to Europe for 110,000 miles — a flight that would have easily cost over $10,000. United has since removed its partner award chart, so the new redemption amount will likely be higher, but it remains a (relatively) fantastic value.

Similarly, I’ve transferred 30,000 points instantly to Hyatt, for a free stay at the Park Hyatt Paris Vendome, when the cash rate exceeded $1,000 per night. In both cases, my redemption values far exceeded TPG’s 2-cent valuation of Ultimate Rewards points.

More recently, however, I’ve booked travel directly through Chase Ultimate Rewards, including flights and experiences — both at a far lower redemption rate of 1.5 cents per point. With healthy frequent flyer and hotel program balances, I found those redemptions to be a good use of my Ultimate Rewards points. That hasn’t been an option lately, since I haven’t been traveling due to the pandemic — which is why I’m especially excited about Chase’s latest redemption option — Pay Yourself Back.

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Statement credit options

Chase has long offered the option to redeem points for a statement credit — simply log into your Ultimate Rewards account, hit the drop-down menu and select “Cash Back.” You’ll be presented with an option to enter the amount you’d like to redeem, and where you’d like your rewards deposited. All cash-back redemptions are fixed at 1 cent per point, which is only half of TPG’s valuation for Ultimate Rewards.

Even so, Chase’s traditional cash-back option is more generous than what you can expect from some other issuers. Here’s how it breaks down for some of the most popular programs and cards:

Program Redemption value Cards
Amex Membership Rewards 0.6 cents per point American Express® Gold CardThe Platinum Card® from American Express
Chase Ultimate Rewards 1 cent per point Chase Sapphire ReserveChase Sapphire Preferred Card
Citi ThankYou Rewards 0.5 cents per point (1 cent with Citi Prestige® Card) Citi Premier® Card Citi Rewards+® Card
Capital One 0.5 cents per point Capital One Venture Rewards Credit Card


What is Pay Yourself Back?

Recently, Chase added a far better option for customers with the Chase Sapphire Preferred Card, Chase Sapphire Reserve, Chase Freedom (no longer available), Chase Freedom Unlimited, Chase Freedom Flex, Chase Ink Plus Business Credit Card and the Ink Business Preferred Credit Card. Branded as “Pay Yourself Back,” Chase’s new program lets you use your Ultimate Rewards points to offset certain purchases at a much more favorable rate. The information for the Citi Prestige, Chase Freedom, and Ink Plus Business has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

While the program may be adjusted to include additional cards and new categories in the future, through April 30, 2021, Chase Sapphire Reserve customers can redeem points at 1.5 cents apiece while Chase Sapphire Preferred customers can redeem Ultimate Rewards at 1.25 cents each to offset purchases made at grocery stores, home improvement stores and dining establishments, including take-out and delivery services.

Related: Which card should I use? A guide to navigating COVID card bonuses and benefits

So rather than receiving a statement credit of $100 when redeeming 10,000 points, a Chase Sapphire Reserve customer would receive a credit of $150, for the same redemption amount, when offsetting purchases in the categories outlined above. This is the same redemption rate offered on Ultimate Rewards Travel redemptions.

Related: Sweet spots: The best ways to use Chase Ultimate Rewards points

As for customers with other cards, Chase Freedom (this card is no longer open for applications), Chase Freedom Unlimited and Chase Freedom Flex cardholders can redeem points at 1.25 cents apiece toward donations made to eligible charitable organizations through Dec. 31, 2020. Additionally, Ink Business Preferred and Ink Plus Business points will be worth 1.25 cents each toward online advertising and shipping purchases, also through Dec. 31, 2020.

Requesting a credit

Simply log into your Ultimate Rewards account via mobile app or desktop and select the “Pay Yourself Back” option in the sidebar.

Next, you’ll see a list of eligible restaurant and grocery purchases you can redeem points for. Points can be redeemed for purchases as far back as 90 days, at a rate of 1.5 cents each for Sapphire Reserve cardholders and 1.25 cents if you have the Sapphire Preferred. The example below are based on redemption rates for a Sapphire Preferred Card.

Simply check off the purchases you want to redeem and proceed to the next page.

You can choose to offset the full purchase amount, assuming you have enough points to cover it, or you can redeem a smaller amount, if you prefer.

From there, you can confirm the redemption value and amount, and choose to complete the transaction.

And that’s it! Your statement credit should post within three business days.

Boosting your return

While some purchases earn 1 point per dollar spent, it’s easy to do far better than that. And since you can combine Ultimate Rewards points earned across multiple cards, you’ll want to mix up your spending to earn more points, then redeem for up to 1.5 cents in statement credits apiece (if you have Chase Sapphire Reserve).

Assuming you play your cards right, you’ll earn above the standard 1-point per dollar spent on purchases that fall under all of the categories outlined below.

Category Earnings rate Card
Lyft 10x Chase Sapphire Reserve
Lyft 5x Chase Sapphire Preferred Card
Travel and dining 3x Chase Sapphire Reserve
Travel 3x* Ink Business Preferred Credit Card
Travel and dining 2x Chase Sapphire Preferred Card
Shipping 3x* Ink Business Preferred Credit Card
Internet, cable, phone 5x** Ink Business Cash Credit Card
Internet, cable, phone 3x* Ink Business Preferred Credit Card
Online advertising 3x* Ink Business Preferred Credit Card
Office supply stores 5x** Ink Business Cash Credit Card
Quarterly offer 5x*** Chase Freedom (No longer open to new applicants)
All purchases 1.5x Chase Freedom Unlimited

*3x points on the first $150,000 spent in combined purchases on travel, shipping purchases, internet, cable and phone services, advertising made with social media sites and search engines each account anniversary year.
**5% cash back on the first $25,000 in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year, equivalent to 5x points if you transfer points to an account that earns Ultimate Rewards.
***Up to $1,500 per quarter.

Say in a given month I spent $200 on Lyft rides with my Chase Sapphire Reserve for a total of 2,000 points; $500 on dining for a total of 1,500 points; $100 on internet or cable with my Ink Business Cash Credit Card for 500 points; and $500 on all other purchases with my Chase Freedom Unlimited, for a total of 750 points.

At the end of the month, I’ll have earned 4,750 points, which I can then redeem for $71.25 toward purchases made at grocery stores, home improvement stores and dining establishments. In total, I’ll have earned a return worth almost 5.5%, based on $1,300 in monthly spend — far higher than what I’d be able to achieve with any single cash-back card.

Related: How to maximize your rewards points on other redemptions

Higher-value redemptions

As I mentioned, TPG values Chase Ultimate Rewards points at 2 cents apiece, thanks specifically to the program’s valuable 1:1 transfer partners, including a variety of airlines and hotels. The current list includes:

Program Transfer Time
Aer Lingus Instantaneous
British Airways Instantaneous
Emirates Instantaneous
Flying Blue (Air France/KLM) Instantaneous
Hyatt Instantaneous
Iberia Instantaneous
IHG Instantaneous
JetBlue Instantaneous
Marriott 39 Hours
Singapore Airlines Same Day**
Southwest Instantaneous
United Instantaneous
Virgin Atlantic Instantaneous

Personally, of the list above, my preferred airline transfer partner has been United Airlines, due to the carrier’s simple online booking platform, decent redemption rates — especially for elites and cobranded cardholders — and the fact that miles no longer expire.

For example, you can book a one-way flight in ANA’s brand-new first class for 121,000 miles, compared with nearly $15,000 if paying cash for the same flight — a redemption value of over 12 cents per point.

United has removed award charts for its own flights, and those operated by partners, so be sure to check pricing and availability before you initiate a transfer.

Meanwhile, on the hotel front, I’ve had great success redeeming awards through Hyatt. Two of my personal favorites include the Park Hyatt Paris Vendome and the Park Hyatt New York — both are priced at 30,000 points per night, with cash rates that often exceed $1,000, netting me well over 3 cents per point in value.

There are plenty other high-value redemption options to choose from — be sure to check out our guide for more.

Bottom line

Does it make sense to redeem Chase Ultimate Rewards points at up to 1.5 cents apiece, at least 25% shy of TPG’s 2-cent valuation? Ultimately, that decision comes down to how you plan to use your points, how many you currently have with airline and hotel programs, and whether or not you’d benefit significantly from statement credits.

If you’re hoping to use your points for a premium-cabin trip in the not-too-distant future, it could certainly make sense to hold onto them and transfer to partners down the line. On the other hand, if you don’t plan to travel soon, or you’re worried about your financial situation, redeeming points at a slightly lower rate is surely preferable to carrying a balance or cutting back on essential spending.

Featured photo by The Points Guy.

Chase Sapphire Preferred® Card

WELCOME OFFER: 60,000 Points


CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

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More Things to Know
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases.
  • 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for travel through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 2x total points on up to $1,000 in grocery store purchases per month from November 1, 2020 to April 30, 2021. Includes eligible pick-up and delivery services.
Regular APR
15.99%-22.99% Variable
Annual Fee
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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