[Extended] Chase Adds 'Pay Yourself Back' to Southwest Rapid Rewards Credit Cards [Extended] Chase Adds 'Pay Yourself Back' to Southwest Rapid Rewards Credit Cards

[Extended] Chase Adds 'Pay Yourself Back' to Southwest Rapid Rewards Credit Cards

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Chase recently extended the Pay Yourself Back benefit to all Southwest Rapid Rewards co-branded cards. With Pay Yourself Back, eligible cardholders can “pay themselves back” using Rapid Rewards points earned when using their card.

Pay Yourself Back was first launched as a benefit of the Chase Ink and Chase Sapphire cards. More recently, Pay Yourself Back was extended to the Aeroplan® Credit Card. So, how does Pay Yourself Back work? And does it make sense for Southwest cardholders to take advantage of this new benefit? Let's dig in.

Southwest plane parked at airport gate

Pay Yourself Back Now Available to Southwest Airlines Credit Cardholders

Pay Yourself Back allows Southwest Rapid Rewards cardholders to use Rapid Rewards points earned with their card to cover certain transactions made with their card. To get started, log into your Chase account and browse to this page.

At the moment, Southwest co-branded cardholders can only cover two types of transactions. These transactions include up to $300 in purchases made at restaurants and the card's annual fee.

Chase Southwest Pay Yourself Back options

For reference, here are the Chase-issued Southwest Rapid Rewards Credit Cards. All of these co-branded cards now feature this new benefit:

However, cardholders that want to redeem their points to cover up to $300 in purchases made at restaurants only have a few months left to do so. The option to pay yourself back for purchases made at restaurants expires on September 30, 2023 (extended from March 31).

For now, Chase does not list an expiration date on utilizing Pay Yourself Back to cover a card's annual fee. As such, this appears to be a permanent fixture of the Pay Yourself Back benefit for Rapid Rewards cardholders.

However, covering these transactions might not be the best use of your Rapid Rewards points.

Does It Make Sense to Pay Yourself Back?

Using Pay Yourself Back to cover one of these two types of transactions yields little value from your Southwest Rapid Rewards points.

For example, if you wanted to use Rapid Rewards points to cover the annual fee of the Southwest Performance Business Card, you would need to redeem 19,900 points to cover the $199 annual fee. That means you'd get just 1 cent per point in value.

Southwest Pay Yourself Back for annual fee example

Redeeming points to cover restaurant purchases results in even less value per point. If you were to max out the Pay Yourself Back benefit at restaurants, you would need to redeem 37,500 points to cover $300 in transactions (originally $200). That's the equivalent of getting less than a cent (0.8 cents) in value per point.

Southwest Rapid Rewards Pay Yourself Back for restaurants example

For comparison, AwardWallet users have redeemed Rapid Rewards points for flights at an average value of 1.52¢.

So, does it make sense to use this new Southwest Pay Yourself Back option? In short, no, it does not make sense. There are plenty of other ways to utilize Rapid Rewards points that yield a far better return.

Related: The Complete Guide to Southwest Airlines Rapid Rewards

The Bottom Line

Chase extended the Pay Yourself Back benefit to all Southwest Airlines Rapid Rewards credit cards. Unfortunately, cardholders will get significantly less value if they choose to redeem their points to cover eligible transactions rather than use those points for a flight redemption.

Southwest Rapid Rewards cardholders have until the end of September to utilize their points to cover up to $300 in purchases made at restaurants. There is no deadline to redeem points to cover a card's annual fee. But, as previously mentioned, nearly every other Rapid Rewards redemption yields better value than if you were to redeem them as part of the Pay Yourself Back benefit.

Have you ever utilized the Chase Pay Yourself Back benefit? Would you ever redeem Rapid Rewards points to pay yourself back?

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