Chase Pay

Posted : admin On 1/26/2022

In November 2016, JP Morgan Chase launched a new digital wallet, called Chase Pay. I know what you’re thinking – there’s already Apple Pay, Android Pay, Samsung Pay, Google Wallet, PayPal… do we really need another digital wallet? Chase thinks so.

And if your customers start paying with digital wallets more often, Chase Pay could be a cost-saving option.

Chase is extending its “Pay Yourself Back” feature on Sapphire cards, which is great news. The benefit was supposed to expire on April 30, 2021, but has now been extended through September 30, 2021. If you don’t have a Chase Sapphire card, these cards are offering excellent elevated bonuses at the moment. Chase online lets you manage your Chase accounts, view statements, monitor activity, pay bills or transfer funds securely from one central place. To learn more, visit the Banking Education Center. For questions or concerns, please contact Chase customer service or let us know about Chase complaints and feedback. Chase online lets you manage your Chase accounts, view statements, monitor activity, pay bills or transfer funds securely from one central place. To learn more, visit the Banking Education Center. For questions or concerns, please contact Chase customer service or let us know about Chase.

  • What’s different about Chase Pay for businesses?

Chase Pay App Discontinued

In autumn 2019, Chase announced that it will be discontinuing the Chase Pay standalone app. It will continue to support Chase Pay as a payment method through participating websites.

That means that you can choose to pay using Chase Pay for some online purchases, but you’ll no longer be able to use a QR code in person to pay with the Chase Pay app.

The company offers more details on the changes here.

What is Chase Pay?

Chase Pay is a method of payment called a digital wallet. Offered by JPMorgan Chase, it lets customers use their smartphone to pay for purchases in a store instead of presenting a physical credit or debit card. Digital wallets can also be used to store information for quicker online purchases.

You can also use Chase Pay online with participating websites.

Chase Pay also partnered with LevelUp to offer order-ahead capability. Users can pay for food at the time they order it through the Chase Pay app. At the end of 2016, the functionality is only available in limited locations. However, Chase plans to roll it out nationwide in 2017 and beyond.

When did Chase Pay officially launch?

After a few delays, Chase Pay officially launched on late November, 2016. A limited number of businesses online, including 1-800-flowers, currently list Chase Pay as a payment option at checkout. Chase Pay has also lined up acceptance at Shell gas stations.

Chase has been aggressively courting businesses to accept the wallet. The company announced a partnership with coffee giant Starbucks. Approximately 7,500 Starbucks locations are expected to accept Chase Pay by the end of 2016. Chase Pay can also be utilized within the popular Starbucks app. Additionally, Chase Pay secured a deal with Phillips 66 to accept the mobile wallet at its gas stations and convenience stores, and with electronics chain Best Buy. In early November of 2016, Walmart announced that it would begin accepting Chase Pay in its stores.

Follow us on Twitter or Facebook for updates on Chase Pay.

What’s different about Chase Pay for consumers?

There are several key differences between Chase Pay and other digital wallets. The biggest difference is that Chase Pay is not a tap-to-pay wallet. With Apple Pay, Android Pay, and most other digital wallets, customers “tap” their phone to the payment terminal.

With Chase Pay, the app will present a QR code that the cashier scans to complete the transaction. On the one hand, customers may find it inconvenient to hand their phone to cashiers to scan. On the other hand, it could prove an easy way to pay at stores that don’t have contactless payment terminals set up to accept digital wallets.

Additionally, some customers may already be familiar with scanning their phone for transactions because of Starbucks’ barcode scanning option and Groupon redemption scanning. Pulling up a QR code on a phone might not be an inconvenience, especially to customers annoyed with longer authorizations from chip credit cards and looking for alternatives.

Chase

***Note that the QR code scanning method is part of the Chase Pay app, which Chase announced in 2019 would be discontinued. ***

Compatibility

Chase Pay will work on both Android and Apple smartphones, which is convenient for customers who don’t want to be forced to a particular device to use a digital wallet. Currently, some major digital wallets are restricted to one platform or the other. Apple Pay only works on Apple devices, while Samsung Pay and Android Pay only work on Android devices. Google Wallet and PayPal also work on both Android and Apple devices, however Google Wallet is undergoing a lot of shifts in capabilities, and PayPal is not yet readily accepted at most stores or restaurants. PayPal may have trouble overcoming its reputation as an online digital wallet and payment method.

Do all credit cards work with Chase Pay?

No. Only Chase credit and debit cards can be used with Chase Pay. According to Chase, there are currently 94 million Chase cards in the United States, and Chase leads the industry in total card payment volume with over $700 billion in sales each year.

What’s different about Chase Pay for businesses?

The biggest difference between Chase Pay and other digital wallets is how Chase Pay charges. While full pricing details are not yet available, Chase has stated that it will offer a fixed rate and that businesses will not have to pay usual processing fees. We’ll come back to this a little later.

Chase Pay is also the only digital wallet that has secured a deal with the Merchant Customer Exchange (MCX), a group of retailers. MCX businesses currently don’t accept rival wallets such as Apple Pay, which could potentially increase Chase Pay’s usage. However, those businesses will be free to choose to accept Apple Pay when the MXC exclusivity expires.

About MCX

The Merchant Customer Exchange (MCX) is a business-owned mobile commerce network made up of some of the largest retailers in the United States. Founded in 2012, it includes businesses like Walmart, Target, Kohl’s, Banana Republic, Olive Garden, Dunkin’ Donuts, Best Buy, Publix, Rite Aid, CVS, Michaels, and more. MCX has been testing and developing its own digital wallet, called CurrentC, and most of the MCX retailers have so far resisted accepting Apple Pay and other digital wallets due to an exclusivity agreement regarding CurrentC. It’s expected that Chase Pay will be accepted anywhere that CurrentC is accepted.

Update: Spring 2016 – Reports indicate that some MCX retailers are starting to accept Apple Pay and other digital wallets following the termination of the CurrentC exclusivity period. There is still no indication that CurrentC will be widely available any time soon, despite entering a limited test phase.

About CurrentC

As stated previously, CurrentC is MCX’s digital wallet. Like Chase Pay, it requires scanning QR codes to pay. However, CurrentC can only be used for paying from a checking account or gift card. It does not support bank-issued cards like MasterCard, Visa, or Discover.

Why would this MCX group partner with Chase Pay but not Apple Pay or Google Wallet?

Primarily, money. Chase Pay has promised MCX that it will cost businesses less to accept Chase Pay than other digital wallets. Additionally, Chase Pay is aggressively touting improved security, which is important to retailers.

How will Chase Pay cost less for businesses than other digital wallets?

Exactly how Chase Pay will cost less for businesses is a little complicated. Basically, Chase Pay eliminates interchange and assessments in favor of charging simplified rates.

In the official Chase Pay press release, Chase states that they will offer fixed pricing and no merchant processing fees or network fees. The only way that Chase Pay can offer no processing fees is if they aren’t going through the usual processing channels. However, Chase Pay can actually do that, due to an existing agreement with Visa.

Usually, a credit or debit card with a particular brand’s logo has to be processed on that brand’s network. So Visa-branded cards have to be processed on Visa’s network, MasterCard-branded cards have to be processed on MasterCard’s network, etc.

Chase and Visa

In 2013, JPMorgan Chase and Visa struck a deal in which Chase would pay Visa to license their own version of Visa’s transaction processing network, calling it ChaseNet. With ChaseNet, Visa-branded Chase credit and debit cards wouldn’t be processed on the Visa network, but on a Chase network. This allows JPMorgan Chase to determine the rates for transaction processing, promising one rate for Chase Visa credit cards, and one rate for Chase Visa debit cards. There are no additional rates and transactions are not broken down into further categories like they are in traditional interchange fee structures. By processing through their ‘own’ network instead of through Visa’s network, JPMorgan Chase (and Chase Pay) can choose not to charge according to Visa’s interchange and assessments table and charge according to their own rules.

Chase and Mastercard

However, it’s important to note that Chase has in the past also issued MasterCard-branded Chase cards. MasterCard-branded Chase cards would need to be processed on the MasterCard network, and couldn’t go through ChaseNet. According to the Chicago Tribune, Chase agreed to issue more Visa cards and move away from MasterCard as part of the 2013 deal with Visa. If Chase decides to issue Visa cards exclusively, then all Chase cards could be processed through ChaseNet and not be subject to traditional interchange and assessments. It’s important to note that processing a Chase card does not automatically mean you won’t be paying interchange and assessments. It just means that as of now, Chase Pay is stating that there will be no interchange and assessment charges when processing a Chase Visa card through Chase Pay.

How can I accept Chase Pay at my store?

Details on accepting Chase Pay are a little sparse right now. It’s likely that you’ll be able to accept Chase Pay if you accept MCX’s CurrentC. As CurrentC is also still in a test phase, it isn’t available to the general public at this time. It may be possible to accept Chase Pay even if you don’t accept CurrentC, but details on that are not yet available. Chase stated in their press release that they’re working with over a dozen technology vendors to make Chase Pay available to businesses that aren’t currently Chase clients.

Update: June 1, 2016 –CurrentC has been shelved, with little further information offered.


Follow us on Twitter or Facebook for updates on Chase Pay.

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Here at TPG, we value Chase Ultimate Rewards points at 2 cents apiece when maximized with transfer partners 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 options like that remain a (relatively) fantastic value.

Similarly, I’ve transferred 30,000 Ultimate Rewards points instantly to Hyatt for an award 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 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 at times.

During the pandemic, Chase introduced another option to redeem points at up to 1.5 cents per point in value even when you aren’t traveling via the Chase Pay Yourself Back feature. It was introduced as a potentially limited-time pandemic feature with an end date, but that’s been extended.

Not only was the feature extended until Sept. 30, 2021, with most categories, but there’s a new option for using your points at that higher rate if you have a Chase Sapphire Reserve — using it against your card’s annual fee.

New to The Points Guy? Sign up for our TPG daily newsletter and check out our beginner’s guide.

In This Post

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, only half of TPG’s valuation for Ultimate Rewards.

© Provided by The Points Guy You can redeem Ultimate Rewards points for cash back at 1 cent apiece (Screenshot courtesy of Chase)

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:

ProgramRedemption valueCards
Amex Membership Rewards0.6 cents per pointAmerican Express® Gold Card, The Platinum Card® from American Express
Chase Ultimate Rewards1 cent per pointChase Sapphire Reserve, Chase Sapphire Preferred Card
Citi ThankYou Rewards0.5 cents per point (1 cent with Citi Prestige® Card) Citi Premier® Card, Citi Rewards+® Card
Capital One0.5 cents per pointCapital One Venture Rewards Credit Card

The information for the Citi Prestige card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

What is Pay Yourself Back?

In 2020, Chase added a far better option for customers looking to redeem points for expenses outside the realm of travel. Cardholders 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 (no longer available) and the Ink Business Preferred Credit Card can use points at a higher ratio to cover the cost of some types of expenses. 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 program currently has different timelines and eligible purchases for each card type. Here are some current Chase Pay Yourself Back options:

CardRedemption valueCategories Current end date
Chase Freedom Flex1.25 cents per pointSelect charities and fund vaccine ride with LyftSept. 30, 2021 (Dec. 31, 2021, for charity option)
Chase Sapphire Preferred1.25 cent per pointDining, grocery stores, home improvement stores, select charities, fund a vaccine ride with LyftSept. 30, 2021 (Dec. 31, 2021, for charity option)
Chase Sapphire Reserve1.5 cents per pointDining, grocery stores, home improvement stores, annual fee, select charities and fund a vaccine ride with LyftSept. 30, 2021 (Dec. 31, 2021, for annual fee and charity options)
Ink Business Preferred1.25 cents per pointShipping, home improvement stores, select charities and fund vaccine ride with LyftJune 30, 2021 (Dec. 31, 2021, for charity option)

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

The way this would work is rather than receiving a statement credit of $100 when redeeming 10,000 points, if redeeming against an eligible Pay Yourself Back charge, a Chase Sapphire Reserve customer would receive a credit of $150 for the same redemption amount. This is the same redemption rate offered on Ultimate Rewards Travel redemptions for that card.

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, 2021.

Requesting a credit

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

© Provided by The Points Guy (Screenshot courtesy of Chase)

Next, you’ll see a list of eligible 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 is based on redemption rates for a Sapphire Reserve Card.

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

© Provided by The Points Guy (Screenshot courtesy of Chase)

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.

Chase Online Bill Pay Logon

© Provided by The Points Guy (Screenshot courtesy of Chase)

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.

Bottom line

Does it make sense to redeem Chase Ultimate Rewards points at up to 1.5 cents apiece towards non-travel charges, which is at least 25% shy of TPG’s 2-cent valuation?

It absolutely can make sense. Even TPG staffers who love to maximize their points for travel have done this in the last year with travel larger on the back-burner. For example, TPG Editorial Director Scott Mayerowitz cashed in over 300,000 Chase points in 2020 … for over almost $5,000 worth of meals and groceries. It’s hard to criticize keeping thousands of dollars in cash safely in your wallet, even if you could redeem them for a higher value towards travel later on.

Chase Pay

But 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 the 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 your points and transfer them 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 up to 1.5 cents each is surely preferable to carrying a balance or cutting back on essential spending.

Additional reporting by Summer Hull

Chase Pay Bill

Featured photo by The Points Guy.

Pay Chase Slate

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.