cardholders get a 50% bonus on this option, meaning that if I chose to redeem my points this way, I'd be getting 1.5 cents per dollar. This is a pretty good value, especially when you consider that the higher-value methods of strategically transferring points to airlines and hotel chains aren't very useful right now.
Given that I don't think I'll travel seriously any time soon, I decided to take advantage of this Pay Yourself Back feature to redeem a good portion of my Ultimate Rewards points. By getting 5 points per dollar on my grocery and food delivery purchases, and then redeeming those points at a rate of 1.5 cents each to "erase" those purchases, I've effectively been earning a cash back rate of 7.5% on all of my food costs with theA $100 grocery store purchase, for example, nets me 500 points, and then redeeming those 500 points to cover that grocery store purchase at a rate of 1.5 cents per point saves me $7.50.
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