December brings a welcome surge of generosity, and for those savvy with their rewards cards, it unlocks a powerful opportunity. This month, select Chase cardholders can dramatically amplify their earnings with a simple strategy: utilizing PayPal.
For Chase Freedom and Freedom Flex cardholders, PayPal is a featured bonus category, offering 5% cash back on purchases made through the platform – up to $1,500 spent. But the real magic happens when you combine this with a Chase Sapphire Preferred or Sapphire Reserve card.
Those holding both a Freedom family card and a Sapphire card aren’t limited to cash back. Instead, that 5% cash back transforms into a remarkable 5 points per dollar spent, unlocking significantly greater value.
PayPal’s widespread acceptance makes maximizing this bonus surprisingly easy. From major retailers like Home Depot, Nordstrom, and Target, to reloading your Starbucks account, PayPal frequently appears as a convenient checkout option.
Consider the example of quarterly estimated taxes. One contributor recently paid $1,474 in taxes, plus a $26 processing fee, through PayPal using their Freedom card. With the Sapphire Reserve, this translated into 7,500 Ultimate Rewards points – valued at $154 – netting a gain of roughly $128 after accounting for the fee.
Even person-to-person transfers through PayPal can yield rewards, though it’s crucial to be aware of potential fees. While Chase’s terms state these transactions may not qualify, past experiences show even small transfers can generate worthwhile points, especially when paired with a premium Sapphire card.
Previously, a $120 payment to a friend, incurring a $4 fee, generated approximately 620 points. These points, valued at $13 with the Sapphire Reserve, comfortably outweighed the transaction cost, demonstrating the potential even with smaller amounts.
The key to success lies in simplicity. Designate your eligible Freedom card as the default payment method within your PayPal account. Then, when making online purchases throughout the holiday season, simply check out using PayPal to effortlessly maximize your rewards.
The rotating bonus categories can be challenging to track, but the PayPal opportunity is particularly accessible. By leveraging this combination, you can unlock a substantial boost to your rewards earnings during the busiest shopping time of the year.
