June 4, 2009 - 7:24am
JPMorgan Chase & Co. is planning to launch a new card-rewards program. American Express Co.'s Membership Rewards loyalty program or Citigroup Inc.'s ThankYou Network program served as an example to Chase.
"With all of the challenges in this environment and changes in the economy, we do see that consumers are spending less than they have in the past," said Eileen Serra, president of Chase Card Services.
According to that program, dubbed Ultimate Rewards, customers will earn points for every dollar spent on certain Chase credit cards. There will be no earnings caps or expiration dates. Each point is one penny worth, when points are redeemed for travel, cash, statement credits or gift cards. It is also possible to redeem points for merchandise, but in this case the redemption rate is slightly less than one percent.
The reward program now is available only to holders of two Chase cards - the Chase Freedom card and a new "Sapphire" credit card. Later the company plans to link other cards to the program too.
Launching a new reward program Chase is replacing older versions of its Freedom card. Some of these cards had offered richer cash-back rewards and bonus opportunities. According to old version reward program all Chase Freedom cardholders earned 1 point for every dollar spent and 3 points for every dollar spent in categories that change each quarter. Chase had already moved to those terms for new customers last November.
Under Chase's rewards program, customers earn bonus points if they book travel using the program's online booking tool or if they shop through the program's merchant partners. There are no annual fees for standard Freedom and Sapphire cards (1% of cash back, or 1 point). However, those Freedom cardholders, who wants to earn 3% of bonus (3 points for every dollar spent) for spending in grocery, gas and fast-food categories, will have to pay $30 annual fee. Sapphire Preferred cardholders will have to pay $95 annual fee.
"With all of the challenges in this environment and changes in the economy, we do see that consumers are spending less than they have in the past," said Eileen Serra, president of Chase Card Services.
According to that program, dubbed Ultimate Rewards, customers will earn points for every dollar spent on certain Chase credit cards. There will be no earnings caps or expiration dates. Each point is one penny worth, when points are redeemed for travel, cash, statement credits or gift cards. It is also possible to redeem points for merchandise, but in this case the redemption rate is slightly less than one percent.
The reward program now is available only to holders of two Chase cards - the Chase Freedom card and a new "Sapphire" credit card. Later the company plans to link other cards to the program too.
Launching a new reward program Chase is replacing older versions of its Freedom card. Some of these cards had offered richer cash-back rewards and bonus opportunities. According to old version reward program all Chase Freedom cardholders earned 1 point for every dollar spent and 3 points for every dollar spent in categories that change each quarter. Chase had already moved to those terms for new customers last November.
Under Chase's rewards program, customers earn bonus points if they book travel using the program's online booking tool or if they shop through the program's merchant partners. There are no annual fees for standard Freedom and Sapphire cards (1% of cash back, or 1 point). However, those Freedom cardholders, who wants to earn 3% of bonus (3 points for every dollar spent) for spending in grocery, gas and fast-food categories, will have to pay $30 annual fee. Sapphire Preferred cardholders will have to pay $95 annual fee.