The benefit reduction trend continues with credit card reward redemptions. It is now Chase’s term to do this, for Ultimate Rewards credit cards. I do not know if this applies to ALL or SOME Freedom credit cards. Starting September 1st, if you want to use your accumulated Chase Rewards to pay directly for Amazon purchases, you will no longer enjoy the favorable 1:1 (1 point = 1 penny) exchange rate.
As you can see at the screenshot above, when you use Amazon’s Shop with Points you will spend $1.25-equivalent in points to make a $1 purchase at Amazon. Instead of the current rate of $1 for $1.
Per the email, none of the other redemption options will change, so you can still use your rewards to get cash or statement credit or gift cards at the more favorable 1:1 exchange rate.
NOTE: this only impacts the “Amazon Shop With Points”. If you are not familiar with this, it is when you shop at the Amazon website and pay (partially or fully) for your purchase with credit card rewards. This happens if you had previously connected your rewards account with Amazon’s payment system and if you elect to do so in the shopping cart.
This does not affect the 5% cashback earnings rewards that are running in Q3::2016.
PRO TIP: I would advise against trying to spend all your points before 9/1/16 using Shop With Points, because with the current system, your Points are deducted after your order ships. If your purchase hits a snag or your order gets split in pieces and doesn’t ship right away, you may end having to pay using the new exchange rate. Unless you know for sure it will ship or you are willing to babysit the order and make order adjustments as we get closer to 9/1/16.
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