New credit card rewards program from Chase

06.05.09
By Sarah Beldo

As Americans continue to cut back on spending, Chase is introducing a new credit card rewards program that it hopes will lure more consumers into using plastic for purchases.

What are the perks? The Ultimate Rewards program provides customers with one point per dollar spent, as well as double points on airline travel and the opportunity to earn bonuses when buying from selected merchants.

Chase is promoting Ultimate Rewards as offering more flexibility than some competing programs, as there are no annual limits on points earned or number of redemptions. Points do not expire and there are no earning tiers or merchant restrictions for purchases.

Points can be redeemed in the form of cash back, a statement credit, gift cards, travel or merchandise.

The bank currently offers two rewards cards that can be used in conjunction with the program: Chase Freedom and Chase Sapphire.

Chase Freedom does not carry an annual fee - however, the Wall Street Journal reports that customers who want an extra 3 percent for spending on groceries, gas and fast food will pay $30 per year.

Meanwhile, Chase Sapphire is a premium rewards card aimed at affluent customers and has a "preferred" option that allows cardholders to transfer points to other travel rewards programs for $95 per year.

Eileen Serra, president of Chase Card Services, says the new program "has reinvented the rewards experience."

She told the Wall Street Journal that Ultimate Rewards is meant to respond to evolving trends in consumer spending habits.

"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," she explained.

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Points do not expire and there are no earning tiers or merchant restrictions for purchases.