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Credit Cards, Reviews

Chase Sapphire Reserve Review: Is the Annual Fee Worth It?

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Looking for a travel rewards card with a big bang for your buck? Chase Sapphire Reserve® may be right for you.It comes with a litany of benefits for frequent travelers including:

  • 3X points on travel immediately after earning your $300 travel credit. 3X points on dining at restaurants & 1 point per $1 spent on all other purchases. $0 foreign transaction fees.
  • Your points are worth 50% more when you redeem through the Chase Ultimate Rewards® portal.
  • Ability to transfer your points on a 1:1 basis to major airline and hotel rewards programs.
  • $100 statement credit after you pay for your TSA PreCheck or Global Entry application.
  • The first $300 you spend on travel during each 12-month period measured by your sign-up date will be automatically reimbursed through statement credits.
  • Currently, you can earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.

These benefits do come at a cost. The card has a $450 annual fee — and it is not waived in the first year. While the benefits are top-notch, they’re only accessible to those who can float the $450 in upfront costs.

Chase Sapphire Reserve®

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The information related to Chase Sapphire Reserve® has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Chase Sapphire Reserve®

Annual fee
$450
Rewards Rate
3X points on travel immediately after earning your $300 travel credit. 3X points on dining at restaurants & 1 point per $1 spent on all other purchases. $0 foreign transaction fees.
Regular Purchase APR
19.24% - 26.24% Variable
Credit required
excellent-credit

Excellent

How to earn points

The best way to earn points with Chase Sapphire Reserve® is by placing all of your travel and dining purchases on this card exclusively. These purchases will get you 3X points on travel immediately after earning your $300 travel credit. 3X points on dining at restaurants & 1 point per $1 spent on all other purchases. $0 foreign transaction fees.

What, exactly, qualifies as a travel purchase? The obvious things, like hotels and car rentals, are included. But don’t forget merchants like Airbnb, Expedia, or even your state DOT when you drive on toll roads.

Certain travel-related expenses do not count as travel purchases. Amusement park tickets, excursions purchased directly through tour companies, and that Starbucks latte you purchased at the airport will not be counted as a 3-point-per-dollar travel expense, for example.

If you’re making a big purchase, but you’re not sure if it will qualify as a travel expense, it’s worth it to call the company you will be purchasing from. You want to find out how they are coded to credit card companies. Do they come through as “travel” or is the business classified into another category? Finding the answer to this question can help you decide if you should make the purchase on your Chase Sapphire Reserve® or if you should charge it somewhere else where you’ll get more than one measly point per dollar.

Best ways to redeem points

Whether you’re purchasing a plane ticket for a work trip or booking your next family vacation, you want to make sure you’re maximizing all those points you’ve earned.

One of the best ways to redeem your points at booking is by using the Chase Ultimate Rewards portal. Here, you’ll be able to find flights, hotels, and more with no blackout dates. Because you’re a Chase Sapphire Reserve® holder, your points will be worth 50% more here. That means that instead of your 50,000-point bonus being worth $500, it will actually be worth $750.

Another potentially great way to book is by transferring your points to one of Chase’s partner airline or hotel rewards programs. This can be done in real time on a 1:1 basis. Sometimes, it may even be a better deal than booking through Chase’s Ultimate Rewards portal.

For example, a flight from New York City to Tokyo may run you $1,200. If you booked within the Chase Ultimate Rewards portal, that would cost you 80,000 points.

However, if you transferred your points to United MileagePlus® miles, you could score a flight for 70,000 points if you booked at the “Saver Award” level in economy class. There is limited seating at this award level, so you would want to book far ahead, but doing so would save you 10,000 points.

Chase Ultimate Rewards has several transfer partners aside from United. The full list includes:

  • British Airways Avios
  • Flying Blue (Air France/KLM)
  • JetBlue TrueBlue
  • Singapore Airlines Krisflyer
  • Southwest Airlines Rapid Rewards
  • United MileagePlus
  • Virgin Atlantic Flying Club
  • Hyatt Gold Passport
  • IHG Rewards
  • Marriott Rewards/Ritz Carlton Rewards

How to qualify

Those with the best chance of qualifying for Chase Sapphire Reserve® will have a credit score of 700 or above without a history of chronically late payments. Those with a credit score below 650 are unlikely to qualify.

This card is only for people with excellent credit. In general, that means your score should be above 700. In addition, Chase (and other credit card issuers) have been cracking down on people who go from one bonus offer to the next. If you apply for a lot of credit cards, don’t be surprised if you are declined.

What we like about the card

There are a lot of reasons to love Chase Sapphire Reserve® if you’re big on travel.

The bonus is nothing to laugh at.

Fifty thousand points is on the high end of standard spending bonuses for credit cards, but when you book through the Ultimate Rewards portal, Chase’s offer is even more stellar.

Your annual fee is effectively lowered to $150 every year.

Because you will receive up to $300 in statement credits for travel reimbursements per year, the $450 annual fee is effectively lowered to $150 — as long as you actually spend $300 on travel.

Rewards points are generous on dining and travel purchases.

Three points per dollar is a large multiplier in the world of travel rewards credit cards.

No foreign transaction fees.

When you’re traveling, the last thing you want to deal with is foreign transaction fees. They can quickly eat away at any value you’re getting with your rewards points, so we’re glad to see that this card doesn’t have any.

Additional $100 statement credit specifically for Global Entry or TSA PreCheck.

Both of these programs can save you a ton of time and hassle, especially if you travel frequently. The $100 statement credit reduces or even eliminates the application fees, depending on which product you pursue.

Plentiful travel protection benefits. When you book your travel with your Chase Sapphire Reserve® card, you automatically have a lot of coverage as long as 100% of the purchase goes on the card. Coverage includes:

  • Auto rental collision damage waiver. You won’t have to purchase collision insurance from your rental company as physical damages to the vehicle will be covered by this waiver provided via Chase.
  • Roadside assistance. You’re covered up to $50, four times per year. Covered services include locksmiths, tows, tire changes, jump-starts, and gas.
  • Baggage delay insurance. If the airline has issues locating your luggage at your destination airport for six hours or more, this insurance policy will reimburse you for essential purchases, like shampoo or slacks. The policy maxes out at $100 per day over the course of five days.
  • Lost luggage reimbursement. What if the airport never finds your bag? Or damages your belongings? Chase will reimburse the value of your belongings up to $3,000.
  • Trip cancellation/interruption insurance.Certain emergencies, such as severe weather or illness, will merit a reimbursement of up to $10,000 if they force you to cancel or cut your trip short.
  • Trip delay reimbursement. If your flight is delayed for over six hours and the airline is offering little to nothing in the way of reimbursement, Chase will pay you back $500 per ticket to cover things like food and hotel stays.
  • Emergency coverages. Chase provides coverage for emergency evacuations, emergency medical and dental services, and accidental death or dismemberment while you’re on a trip that you’ve paid for 100% with your Chase Sapphire Rewards card.

What we don’t like about the card

While Chase Sapphire Reserve®’s rewards are out of this world, they do come at a steep price.

The annual fee is colossal.

A $450 annual fee is huge—especially since it is not waived in the first year. This limits the number of people who will even be able to afford to open a card, nonetheless justify the expense.

Rewards points are scant on everyday purchases.

While this card is generous with rewards points for dining and travel, purchases in every other category only earn 1 point per dollar. Even when you account for the 50% bonus when booking through the Ultimate Rewards portal, it would be wise to put these purchases on one of many other cards on the market that will earn you more points.

Travel hackers will have a hard time qualifying.

Banks (and not just Chase) are making it more difficult for people to jump from bonus offer to bonus offer. If that sounds like you, it will probably be difficult to get approved.

Who the Chase Sapphire Reserve® best for

Those who travel frequently, spending a good portion of their budget on related purchases including dining, will benefit most from this card. These applicants have a solid credit history and score and are more likely to have a higher income as they have the funds available to front the $450 annual fee without hurting their budget. Their travels enable them to get the most out of not only the rewards points but also the statement credits that make this offer so attractive.

Chase Sapphire Reserve® vs. Chase Sapphire Preferred® Card

If you have the $450 to spend up front, and know that you will be able to take advantage of the annual $300 travel reimbursement, Chase Sapphire Reserve® is likely a better card for you than the Chase Sapphire Preferred® Card.

While the Chase Sapphire Preferred® Card‘s annual fee of $95 is only $55 less than the Chase Sapphire Reserve® effective $150 fee after travel reimbursements ($300 Annual Travel Credit – $450 annual fee).

For an additional $55, your Chase Sapphire Reserve® points are worth 1.5 points each when you book through the Ultimate Rewards portal versus the Chase Sapphire Preferred® Card‘s 1.25 points. Let’s look back at our trip from New York City to Tokyo. With the Chase Sapphire Reserve®, you would need 80,000 points to book your $1,200 flight. With the Chase Sapphire Preferred® Card, you would need 96,000 points. That’s a 16,000-point difference. In order to make up the difference, you’d have to spend $6,400 on travel or dining on your Chase Sapphire Preferred® Card.

Fifty-five dollars starts to look like a deal.

You also earn 3 points instead of the Chase Sapphire Preferred® Card rate of 2 points on each dollar you spend on travel and dining.

Given the increased point values, making up the $55 difference is easy. Having the income to support opening the Chase Sapphire Reserve® in the first place is the challenge. Not only do you need to have on hand $450 up front, but you’ll also need to have an income that justifies a credit line of $10,000+. If you will have trouble achieving either of these things, the Chase Sapphire Preferred® Card may be a better card for you.

Alternatives

While Chase Sapphire Reserve® offers fantastic benefits, it’s not for everyone. If you want a credit card that offers travel rewards without such large impositions, you do have other options.

 Chase Sapphire Preferred® Card

The information related to Chase Sapphire Preferred® Card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Chase Sapphire Preferred® Card

Regular Purchase APR
18.24% - 25.24% Variable
Annual fee
$95
Rewards Rate
2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases worldwide

Chase Sapphire Preferred® Card is much like the Chase Sapphire Reserve® option, except the annual fee is $95. It doesn’t have all the same perks, but it does offer 2 points per dollar spent on dining and travel while offering 1 point on all other purchases. When you redeem points in the Ultimate Rewards portal, they’ll be worth 25% more instead of Chase Sapphire Reserve®‘s 50% incentive.

Capital One® Venture® Rewards Credit Card

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on Capital One’s website

Capital One® Venture® Rewards Credit Card

Regular Purchase APR
17.99% - 25.24% (Variable)
Annual fee
$0 intro for first year; $95 after that
Rewards Rate
2 Miles per dollar on every purchase, every day
Credit required
good-credit
Excellent/Good

The Capital One® Venture® Rewards Credit Card offers 2 Miles per dollar on every purchase, every day, with each mile worth one cent when redeemed against a past travel purchase. The annual fee is waived in the first year ($0 intro for first year; $95 after that), and the current sign-up bonus is a One-time bonus of 50,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $500 in travel.

FAQ

Yes, though you should keep in mind the credit requirements above. If you currently have Chase Ultimate Rewards points, it’s wise to transfer them to the Reserve so you can take full advantage of the 1.5-point redemption rate in the Ultimate Rewards portal.

Yes. As long as you share the same address, you will be able to transfer points one to another instantaneously. You cannot combine or share points with a family member who lives at a different address.

No. Once you transfer points to another program, you cannot convert them back to Ultimate Rewards points. Be sure you understand the redemption process for each program before you transfer to ensure you’re getting the maximum value for your points.

No. As long as you keep your account open, your points will not expire. If you have other Chase cards that are eligible for the Ultimate Rewards program, you could close your Chase Sapphire Reserve® account and transfer them to your other card, but as of today Chase Sapphire Reserve® offers the best redemption rate in the Ultimate Rewards portal, so this may not be the best move.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

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Credit Cards, Featured, Pay Down My Debt

Guide to Credit Counseling: 7 Key Questions to Ask

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

couple talking to a financial advisor
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If you have little knowledge on the topic of personal finance and are struggling with your own money issues, you might want to think about getting credit counseling.

Credit counselors can help you set a budget and advise you on how to manage your debt, which can include credit card debt, student loan debt and even housing debt.

Reputable credit counseling organizations have certified counselors who are trained in consumer credit, budgeting, and money and debt management. Credit counselors will work with you to come up with an individualized plan to address any money problems you may have. This can be done in person, over the phone or online.

Seeking credit counseling is typically voluntary but can be required when filing for bankruptcy. In this guide, we’ll answer some key questions you might have about credit counseling and whether it’s right for you.

How do you find a credit counselor?

Before settling on a credit counseling organization, do your homework to make sure they are not only reputable but will also be the most helpful for your particular financial circumstances. Check with your state’s attorney general and consumer protection agency to see if there have been any complaints filed against the organization.

Ensure that the organization is accredited and certified. Check to see if they are members of the National Foundation for Credit Counseling or the Financial Counseling Association of America. Most non-profit credit counseling agencies are associated with these organizations.

When researching agencies, first ask what information or educational materials they provide for free. Organizations that charge for information are typically more interested in their bottom line than in helping you. Also, ask about the types of services they offer. Limited services can be a red flag. The fewer services they offer, the fewer solutions they may provide for you.

You should also attempt to understand the organization’s fee system — not only how much services will cost but also how employees are paid. If employees make more based on the number of services you receive, look for another credit counseling organization.

MagnifyMoney has come up with a list of some of the best credit counseling options, which is a great place to start. If you are looking for credit counseling as a pre-bankruptcy measure, the U.S. Trustee Program has a list of approved credit counseling agencies that can provide pre-bankruptcy counseling.

How much does credit counseling cost?

Credit counseling can involve both start-up and monthly maintenance costs. The Department of Justice says that $50 per month is a reasonable fee. Further, the National Foundation for Credit Counseling (NFCC) suggests that a start-up fee should not exceed $75 and monthly maintenance fees should not be more than $50 per month.

Credit counseling agencies may offer fee waivers or reductions, depending on your income levels. Where credit counseling is required, the DOJ says that, if household income is less than 150% of the current poverty line, the client is entitled to a fee waiver or reduction.

Other regulations, such as when fees can be collected and circumstances that would warrant a fee reduction or waiver, may also be outlined by your state.

How long does credit counseling last?

While the length of your credit counseling session depends on the complexity of your financial problems, sessions typically last 60 minutes. After the initial session, credit counselors will follow up to ensure you understand the actions you need to take and that you have been able to get started on the plan they developed. Another session may be necessary depending on how your financial situation unfolds following the first session.

What do you accomplish with credit counseling?

According to the NFCC, reputable counseling involves three things. First, there must be a review of a client’s current financial situation. You cannot move forward unless you know from where you are starting. Second, there should be an analysis of the factors that contributed to the client’s bad financial situation. You don’t want bad habits to undermine your progress. Lastly, there must be a plan to address the situation without incurring negative amortization of debt. Negative amortization occurs when the amount of debt you have increases because you aren’t paying enough to cover the interest, even though you are making payments.

Understanding these three factors of good credit counseling gives you a place to start in improving your financial situation.

What is the difference between credit counseling and debt management programs?

A debt management plan is just one solution a credit counselor may recommend based on your financial situation. Having a debt management plan is not the same as credit counseling.

A debt management plan involves the credit counseling organization acting as an intermediary between you and your creditors. Each month you will deposit an agreed upon amount of money to your credit counseling agency, which they will, in turn, apply it to your debts.

The credit counseling agency works with your creditors to determine how the amount will be applied each month, and negotiates interest rates and any fee waivers. It’s important to call your creditors directly to check whether they are open to negotiating interest rates or offering waivers for fees. In some cases, a credit counseling firm may promise to negotiate those items for you but be stonewalled when they discover a creditor isn’t even open to the discussion.

Before agreeing to a debt management plan, make sure you understand any fees associated and any choices you might be giving up. For example, some debt management plans may require you to give up opening up new lines of credit for a specified period of time. Remember that a debt management plan is just one of many solutions a credit counselor may advise you to consider.

How does credit counseling impact your credit score?

Not directly. While the fact you are in credit counseling may show up on a credit report, that does not affect your credit score. The actions you take as a result of credit counseling, however, can impact your score.

For example, if you don’t choose a reputable credit counseling agency, the agency may submit a payment on your behalf late to your creditors. So even though you submitted your payment on time to the credit counseling agency, your score may still be dinged. This is just one reason why it’s important to make sure you use a reputable credit counseling agency.

Who should consider credit counseling, and when?

While credit counseling is sometimes required, such as in instances of bankruptcy, you always have an ability to seek credit counseling.

Boston-based Bankruptcy attorney Julie Franklin explains, “For bankruptcy purposes, there are two course requirements — a debtor must complete the first credit counseling course prior to filing and obtain a certificate that is filed with the court in their initial bankruptcy petition documents. Post bankruptcy filing, the debtor is required to take a second course, and upon completion, the certificate that is issued must be filed with the court in order for the debtor to obtain an order of discharge.”

Anyone struggling with their personal finances can consider credit counseling as an option. Franklin also notes that “the first credit counseling course is a tool for debtors, as it compels the individual taking the course to closely examine the household assets, income, liabilities and spending habits to determine if there’s a way to save the debtor from having to file bankruptcy.”

If you are considering bankruptcy, you will have to attend some credit counseling anyhow, but doing so could also help you avoid filing for bankruptcy at all. Keep in mind that filing for bankruptcy will always have a significant effect on your credit score, and can hurt your changes for getting loans or new credit for years to come. If you can avoid it, you probably should.

Voluntary credit counseling might not help if you are already being sued to have a debt collected. However, you may be able to negotiate terms with the debt collector that result in a withdrawal of the suit if you agree to enroll in credit counseling and possibly a debt management program. Not all creditors will agree to such terms, but it is possible.

Bottom line

Many people run into trouble with their finances, whether they have too much credit card debt, are struggling to make their housing payments or just find general budgeting to be a challenge. Some people are dealing with more serious issues, such as potential bankruptcy. There are credit counselors available to help you with any difficult financial situation you may be facing. The most important thing is to ensure you work with a reputable credit counseling agency, so do your research first. A good credit counselor can help you get on the road to financial health, but working with a bad one can lead to more problems than you already have.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Liz Stapleton
Liz Stapleton |

Liz Stapleton is a writer at MagnifyMoney. You can email Liz here

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Credit Cards, Identity Theft Protection

When Banks Can Refuse to Refund Fraudulent Debit Card Charges

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

ATM

Typically, debit cards that are used as “credit” are offered the same protections as credit cards. This means that if you use your debit card in a store and choose “credit” instead of entering your PIN number, you should receive the same protections as if you used an actual credit card. However, we do encourage you to double check the fine print your bank provides on this matter before assuming your debit card will receive those protections.

But here’s a scenario where your debit card is riskier than your credit card. If you withdrawal money at an ATM (or any store doing cash back) using your PIN number, you have additional risk. If someone steals your pin number with a skimming device at an ATM, then he has direct access to your money. This isn’t like credit card fraud with obnoxious charges you need to dispute. This is your hard-earned cash being taken directly out of your checking account. And if you aren’t careful, you might not be able to recoup your losses.

So, what can you expect if you are a victim of debit card fraud?

Timeline for Being Able to Get Your Money Back

If you are a victim of debit card fraud, you are responsible for the following:

  • $0 if you report the loss or fraud immediately and the card has not been used,
  • Up to $50 if you notify your bank within 48 hours of your lost or stolen card,
  • Up to $500 if you notify the bank with 48 hours and 60 days of your lost or stolen card, and
  • All of the fraudulent charges if you don’t notify the bank until after 60 days.

It’s important you don’t delay in reporting the fraud to your bank if you want to be able to get all of your money back. If you were the victim of theft because the crook skimmed your info and used your PIN, then you may be on the hook for the $50 because you couldn’t report to the bank before the card was used. You didn’t know it had happened until the strange transaction showed up!

It may seem unfair to be responsible for charges that you did not actually charge yourself, but to avoid that scenario and protect yourself, consider taking the following precautionary actions.

What You Can Do To Protect Yourself

To protect yourself against debit card fraud, you should do the following:

  • Only use an ATM inside a bank (this will lesson the likelihood that a scanner is on an ATM)
  • Cover your hand when you type your pin into an ATM (to protect yourself against any devices attached to the ATM from getting your PIN)
  • Set up text alerts for each transaction over $0.01 on your card. This way you’ll be immediately alerted if a bogus charge is made
  • Monitor your bank on a regular basis (so you can give notice of fraud immediately)
  • Report stolen funds immediately (so you’re not responsible for the charges)
  • Check-in annually with your bank as to the policies regarding debit card theft (know whether your debit card is specifically protected and to what extent)

While you can notify the bank by phone, it is best to get everything in writing. For purposes of the time requirement, notice is considered given when you put the letter in the mail. It’s even better if you send the mail certified. You can, of course, send notice by mail and call. Whatever you do, keep a record of your communications you have with the bank. This will put you in the best position if you have to escalate your problem.

Remember that if you take the actions listed above, you will be more protected than you otherwise would. Even if you didn’t do anything wrong, like in the example above, you can still find yourself stuck with fraud charges that your bank won’t reverse. These specific steps will help you protect yourself, even when you’re not at fault. This is particularly important if you use your debit card frequently.

Don’t want to use a credit card? Learn how to survive with just debit cards here. 

Debit vs. Credit: How to Decide

Using a debit card forces you to keep your spending in check because you cannot spend more than you have in the bank. However, it may be riskier than using a credit card for the reasons described above. Discover, for example, now offers a Freeze It® on/off switch for your account. If you’re concerned because you’ve lost your card, you can temporarily freeze your account and Discover will not authorize new purchases, cash advances or balance transfers.

Discover it® Balance Transfer

Intro BT APR

0% for 18 months

Balance Transfer Fee

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Regular APR

14.24% - 25.24% Variable

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on Discover Bank’s secure website

Rates & Fees

If you’re not sure which is best for you, ask yourself what do you value more – your spending being limited or the additional protections from fraud. If you can control your spending, then you may be better off with a credit card. If you are a spender, however, then take the additional steps listed above to make sure you fully understand your specific liability in the event of debit card fraud. If you feel your bank is behaving unethically and should be refunding you, then reach out to the Consumer Financial Protection Bureau to file a complaint.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Natalie Bacon
Natalie Bacon |

Natalie Bacon is a writer at MagnifyMoney. You can email Natalie at [email protected]

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