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Posts: 70
Registered: ‎03-30-2017

Sapphire Reserve Cards Aren’t Very Rewarding for J.P. Morgan

A good arcticle on the CSR.


"Some at J.P. Morgan are raising concerns that Sapphire Reserve won’t make money for the bank, due in part to high demand and the card’s generous rewards. Meanwhile, the lender is pushing for about $200 million in fresh cost cuts in the unit that oversees the card, people familiar with the matter say.


The scrutiny inside the bank reflects changing economics of the competitive premium card market. Rewards for consumers—paid for by the bank—have gotten sweeter. Spenders, meanwhile, are growing savvier about maximizing benefits and avoiding balances that pad banks’ profits. "



Link to Article:  WSJ Arcticle







Senior Contributor
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Registered: ‎12-14-2014

Re: Sapphire Reserve Cards Aren’t Very Rewarding for J.P. Morgan



When you help yourself, you feel good. But when you help somebody else get back on their feet, it’s a high that no chemical drug can ever match. It’s the greatest high in the world. It’s addictive, it’s contagious, and the world needs more of it.

Posts: 17,530
Registered: ‎12-30-2011

Re: Sapphire Reserve Cards Aren’t Very Rewarding for J.P. Morgan

[ Edited ]

So many interesting things in that article, thank you for posting!


I didn't listen to the Chase call (I don't follow the financial sector at all besides broad strokes: banks happy, typically good news) but apparently it was a goldmine of things of interest to at least us credit card geeks.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
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Registered: ‎06-02-2016
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Re: Sapphire Reserve Cards Aren’t Very Rewarding for J.P. Morgan

Hmmm. Wonder if that's why I got the green checkmark for the CSP. I've had a checkmark for the Freedom for a couple of months and have ignored it. I will ignore this one too because $450 AF is just too much.

EX 759, TU 764, EQ 741
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Established Member
Posts: 15
Registered: ‎07-27-2017
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Re: Sapphire Reserve Cards Aren’t Very Rewarding for J.P. Morgan

The AF is really only 150, because of the annual 300 travel credit. That said, if you won't use that travel credit, the card is definitely not appropriate to your spending habits.

You need to spend about $6600 on travel annually before this card breaks even (assuming you have or could apply for an alternative card that has no AF and rewards 2% on travel, compared to the 4.5% effective you get from chase after redeeming the 3% rewards on travel for 1.5x points, and that the card does not beat your current cards in any other spending category)

Breakeven calculation:
AnnualFee - AnnualTravelCredit = (BreakevenTravelExpenses - (AnnualTravelCashBack + AnnualTravelCredit)) * (4.5% - 2%)
Established Member
Posts: 15
Registered: ‎07-27-2017
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Re: Sapphire Reserve Cards Aren’t Very Rewarding for J.P. Morgan

Note that breakeven formula ignores the bonus (it's obviously worth taking for the bonus if you cancel immediately after earning it, but the more interesting question is what would make the card worth taking without the bonus)

Also note I didn't factor in transferring point from your other chase cards to that card to get the 1.5x point multiplier.
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Registered: ‎02-21-2016
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Re: Sapphire Reserve Cards Aren’t Very Rewarding for J.P. Morgan

Thank you for posting this, fascinating read.

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