Doctor of Credit (H/T) has reported today that the Chase Freedom Flex 4th Quarter 2020 5x categories will be Walmart and Pay Pal transactions. These categories will also be available to those with the old Chase Freedom.
The Chase Freedom Flex and the old Chase Freedom are amazing credit cards for earning Ultimate Rewards (UR) points quickly on select categories. They are best used in conjunction with the Chase Sapphire Preferred, Chase Sapphire Reserve, or the Chase Ink Business Preferred. This is because you can transfer points earned with either card to any of the above cards for access to transfer partners.
Overview
This is the second year in a row that Chase is offering 5x Ultimate Rewards (UR) points (or 5% cash back) at Walmart. But in 2020, the Walmart category is extended to brick-and-mortar stores.
Conversely, the Discover It is offering 5% cash back at Target, Walmart.com, and Amazon.com for the 4th Quarter. You can use both the Freedom Flex (and/or old Freedom) and the Discover It together to get 5% or 5x UR points at two of the biggest mass retailers in America and from Amazon.com.
Pay Pal is also interesting because you can purchase almost anything and easily earn 5x points. Pay Pal is nice for sending people money and earning points in the process. That could work for people who have friends or family who want money for the holidays instead of a physical gift. Again, Pay Pal has returned for the second year in a row in the 4th Quarter.
The Chase Freedom Flex (and the old Chase Freedom) allows you to earn 5x points on up to $1,500 spend within the bonus categories. That means you can earn 7,500 UR points per quarter if you maximize the categories. All three categories share the maximum spend limit.
Department Stores were a normal fourth quarter rotating category for the old Chase Freedom. But not having them as a 5x category is understandable because of the COVID-19 pandemic limiting shopping at brick-and-mortar stores. There is almost certainly going to an online shopping frenzy this holiday season.
Strategy
People who have multiple cards could earn loads of points with the Chase Freedom Flex (and/or old Chase Freedom). But if they maximize the categories, they would earn only one point for every dollar they spend over the threshold. This is where bonus category cards come into play.
Just use the Freedom Flex if you can’t maximize the categories. But if you spend more than $1,500 at department stores, purchasing gift cards with a non-Amex card is the best strategy. The exception is if you have both the Freedom Flex and the old Freedom. You can use both in tandem at Walmart and for Pay Pal purchases.
Final Draw
The fourth quarter of 2020 should be bountiful for some Chase Freedom Flex and old Freedom cardholders. Chase really thought about consumer behavior during the COVID-19 pandemic and picked amazing categories as a result.
The current set of categories for the old Chase Freedom Card are Amazon and Whole Foods purchases. Registration to earn 5x points closes tomorrow (September 14, 2020) for those who have not registered. This is your last chance to register. All you have to do is click on this link to the registration page and enter your name, ZIP code, and the last four digits of your card’s number.
Registration for the fourth quarter’s categories opens on Tuesday, September 15, 2020. Use the same registration page link and follow the above steps to apply.
I believe there is a significant mistake in this post that needs to be corrected. If you read the info on Chase’s website it says, “Qualifying purchases made at Walmart using PayPal only earn a total of 5%.” So the 5% cashback doesn’t apply for all Walmart and Paypal transactions. It’s only for purchases made AT Walmart USING PayPal ONLY.
This is obviously a very weirdly specific category that I can’t imagine many people will get worthwhile use out of. I could be wrong, but imo it isn’t something that entices me at all. Maybe I’ll wait a bit and see if Chase Flex brings something better to the table.
Hi Cynthia,
Thanks for reading and bringing up this fine print. The Chase website clearly states that all Walmart and PayPal purchases will earn 5x UR points (or 5% cash back) in Q4. The Walmart category includes in-store, online, Walmart Pay, and Walmart gas station purchases. And the PayPal category includes all PayPal-made purchases, including those made at Walmart.
Chase would be foolish to have a weirdly specific category like PayPal at Walmart only. It’s way too narrow for them to make money via swipe fees and for consumers to want to use their Freedom (Flex) cards.
Best Regards,
Anthony
I’m definitely excited about Wal-Mart. I live in a small town with very few options besides Wal-Mart. I will probably be maxing out this quarter.
You mentioned the current categories are gas stations and streaming. Could that be a typo? Because my current categories are Amazon and Whole Foods.
Hi Hailee,
Thanks for reading and catching that typo! The current old Freedom categories are indeed Amazon and Whole Foods. I have corrected the post as necessary.
Anthony
Walmart and Pay Pal transactions are amazing categories? i can think of several others I’d rather have.
Hi Patrick,
Thanks for reading! This might surprise you, but I personally agree with you that I would rather see other categories for Q4. I neither shop at Walmart nor do I use PayPal.
However, there are plenty of people who spend heavily at Walmart. And there are others who make plenty of Pay Pal transactions. You can buy just about anything at Walmart, which makes it an amazing category for so many people. Same logic for Pay Pal.
Anthony