Big rumor today: Chase might be ditching the Chase Sapphire Reserve Card in the upcoming months.
I don't see this happening, but I do expect changes in the future.
Full disclosure: A friend of mine from Award Travel 101 shared this potentially groundbreaking news today after speaking with a friend of his at Chase. I haven't spoken with Chase about this, but who doesn't like a fun rumor.
The Chase Sapphire Reserve took the miles and points world by storm nearly a year ago. The card has become extremely popular thanks to its 3X earning on dining and travel purchases plus an easy-to-use $300 travel credit.
There have been several recent reports about Chase losing money on this card. In fact, Chase already downgraded the $300 annual travel credit. Rather than receiving it every calendar year, new cardholders receive it each anniversary year (after 12 statements).
But, would Chase really dump the card entirely?! That would be crazy!
I have a hard time imagining Chase entirely ditching the Chase Sapphire Reserve Card. What I think would be more likely is that Chase pulls the card from the market while they reconfigure the benefits to a point in which they feel it won't hurt their bottom line.
As someone who uses the Chase Sapphire Reserve Card regularly while traveling both domestically and abroad, I'd really hate to see big changes to it. The 3X dining and travel bonus categories are great perks for me.
The $300 travel credit is definitely a favorite and, as I mentioned earlier, has already been downgraded.
The Priority Pass Select membership is great for the lounge access it provides, but I also have that through other credit cards. Perhaps, the Priority Pass membership will limit cardholders' ability to bring guests into lounges. That would not be a terrible downgrade for many. However, big families might have something to say about it.
I highly doubt they'll take away trip delay insurance that kicks in and covers some expenses when flights are delayed more than 6 hours (assuming you purchased the flight with your Chase Sapphire Reserve Card).
While the card has only been around for about a year, changes to benefits in a short time frame aren't totally unprecedented. Late last year, The Business Platinum Card from American Express started offering a 50% rebate when using points to book flights on your preselected carrier and all business and first class flights via the AmexTravel portal. That benefit has already been stripped from the card and the rebate is now 35% going forward.
Count me as one who can't see Chase dumping the card entirely. Why would they want to stop competing with the American Express platinum cards and the Citi Prestige Card with their own high-end card?
I think my initial instinct is the more likely scenario if anything changes: Chase pulls the Chase Sapphire Reserve Card from the market temporarily while they reconfigure the benefits of the card.
For now, this is just a rumor and any concern could be wasted breathe.
If this rumor proves to be true, what changes do you expect Chase to make to the Chase Sapphire Reserve?
*Featured image courtesy of bklyner.com