I’m a big fan of the Chase Southwest credit card family. There are 3 personal cards and 2 business cards available with various benefits, bonuses and annual fees.
Referral bonuses are a way to make a few bucks and add points towards companion fare.
So, first, the good news. Chase now has a referral bonus for the Chase SW Business cards. You can earn 25,000 points for each referral. I don’t know if there is a limit. On the personal cards, you are limited to 5 referrals per calendar year.
Now, for the bad news. If you earn 60,000 or more Rapid Rewards points , Chase will issue a 1099-MISC. They are using a valuation of $0.01 per mile. I don’t know if this is a new development. This is the first time I have had enough referrals for this to be an issue. Going forward, I will modify my deal for splitting referrals. Instead of giving 50% of the referral amount, I will now give 35% of the referral amount. So, the split will now be 35% to referred, 35% to referrer ( me) and 30% to taxes ( federal and state). If you are interested in a referral for a Chase Southwest card, email me at [email protected]. I also have referrals for some Amex cards and some other Chase cards.
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Is this a new update with ALL Chase card SUBs? It seems odd they would just single out the Southwest card.
Also, I find Sapphire Preferred to be much more valuable than the Southwest – or really any airline card for that matter, save for a few that get you free bags if you value that – due to the flexibility of the points and the higher value when transferring them to partners like Hyatt.