Chase Updates 'Pay Yourself Back' Categories and Cuts Point Values

Pay Yourself Back is sticking around, but with a serious downgrade.

Chase has once again extended its Pay Yourself Back feature, which allows you to redeem rewards at a fixed rate towards purchases in select categories. It launched this benefit in 2020 to give cardholders more ways to redeem Chase Ultimate Rewards points during the pandemic. Cardholders get more value per point through Pay Yourself Back than they would redeeming points for cash back.

The eligible spending categories are updated quarterly, so they changed at the start of 2023. Unfortunately, Chase also made another change to Pay Yourself Back this time around. And it significantly reduces this perk's value with two of Chase's most popular credit cards.

New Pay Yourself Back categories and less value per point

For the first quarter of 2023, Chase Sapphire cards have two new Pay Yourself Back categories in grocery stores and gas stations. Another category, donations to select charities, has been extended for all of 2023 on these cards.

However, on categories other than select charities, Chase Sapphire cardholders get less value per point. If you have the Chase Sapphire Reserve®, the value has dropped from $0.015 per point to $0.0125 per point. If you have the Chase Sapphire Preferred® Card, the value has dropped from $0.0125 per point to $0.01 per point.

With other Chase credit cards, values haven't dropped. Here's the full list of current Pay Yourself Back categories by card:

Bad news for Chase Sapphire cardholders

Pay Yourself Back used to be a great benefit for Chase Sapphire cardholders, and especially those with the Chase Sapphire Reserve®. You could use it to get a reasonable value per point on everyday expenses. The same value, in fact, that Chase offers when redeeming points to book travel through the Chase Travel portal. It was an easy way to save money with your credit card.

That's no longer the case. The fact that the most useful categories now get you less per point is a huge downgrade. Let's say you have 100,000 points on a Chase Sapphire Reserve®. Those would have previously been worth $1,500 with any Pay Yourself Back category. Now, they're worth $1,250, except with select charities.

With the Chase Sapphire Preferred® Card, it's even worse. Outside of select charities, Pay Yourself Back categories only offer $0.01 per point, the exact same amount you'd get redeeming your points for cash back.

After this change, Chase Sapphire cardholders will always be better off using points for travel. You can do so through the Chase Travel portal or by transferring points to Chase airline and hotel partners. Pay Yourself Back just doesn't offer enough value anymore, unless you want to donate to charities with your points.