American Express is raising the price of prestige. Starting Thursday, the annual fee on its Platinum card will climb to $895, up from $695, marking one of the most significant hikes in the premium card space.
In exchange, Amex says cardholders now have access to over $3,500 in annual benefits, a big leap from the $1,500 in perks it previously advertised.
Among the new credits are $400 for restaurants, $600 for hotels, $300 for shopping at Lululemon, and the continuation of a $200 annual Uber benefit. Amex executives say the refreshed perks target affluent customers who value luxury experiences, exclusive services, and high-end rewards.
“The Amex Platinum is for the customer who is looking for premium service, premium benefits,” said Howard Grosfield, president of U.S. consumer services at American Express.
The update highlights the fierce battle among major U.S. credit card issuers for the wallets of wealthy spenders. JPMorgan Chase, Citigroup, Capital One, and Amex all recently rolled out changes to their top-tier offerings. With issuers cutting back on approvals for consumers with lower credit scores, the strategy has shifted to high-income households willing to pay steep fees for access to luxury perks.
This bet comes at a time when affluent Americans are driving a disproportionate share of spending. The top 10% of earners accounted for 49.2% of all U.S. consumption in the second quarter, the highest on record since 1989, according to a Moody’s analysis of Federal Reserve data.
Amex has long led the way in positioning premium credit cards as status symbols. It pioneered concierge services, launched the first airport lounge for cardholders in 2013, and set itself apart in 1958 by charging a $6 annual fee, $1 more than the competition, simply to signal exclusivity.
“Amex leads and then other issuers will follow, and then Amex has to push again,” said Tiffany Funk, co-founder of rewards site Point.me.
The Platinum’s latest fee increase reestablishes it as the priciest option in its category. Chase briefly claimed that title when it raised the Sapphire Reserve fee by $245, to $795, in June. Capital One and Citi, meanwhile, are courting a wider audience with premium cards priced between $400 and $600, offering perks like lounge access and fashion event invites. Capital One has said it has no plans to raise its Venture X card’s $395 annual fee.
While higher fees come with promises of richer rewards, the fine print reveals complexity. The Amex Platinum’s $600 hotel credit is split into two $300 installments spread across six months. Dining credits of $400 must be used quarterly through Resy, while the $300 Lululemon credit is also parceled out. The $200 Uber credit is distributed in $15 monthly chunks, except December, when it jumps to $35.
Such statement credits are increasingly popular because they look generous on paper but cost less for issuers to provide than straightforward cash-back or points. Merchants like Saks Fifth Avenue, Equinox, and Lululemon subsidize these perks for exposure to high-spending cardholders. Amex says partners across its cards now shoulder more than a quarter of the total rewards bill.
Merchants are also tightening rules. For example, some Platinum members once used a $300 Equinox credit for spa treatments without a gym membership. That loophole is gone, the credit can now only offset monthly dues.
The challenge is that many cardholders never fully use their available perks. Amex is attempting to address this with a new dashboard in its app to help Platinum members track credits, enroll in benefits, and book dining. Analysts, however, remain skeptical. “The truth is that most consumers are not spending much time in their bank’s app,” said Greg Davis-Kean of Frequent Miler. “How are they going to see these trackers if they’re not logging in?”
Consumer frustration isn’t unique to Amex. Chase faced criticism when it revamped the Sapphire Reserve despite adding $2,300 in new benefits. Customers complained the straightforward travel points system had been replaced with complex multipliers that depended on booking channels. Just this week, Chase added a $250 hotel credit and made another hotel perk more flexible to appease users.
Still, analysts note one key distinction: Amex added benefits without cutting any of its existing rewards. That said, Davis-Kean wryly pointed out, “Well, they took away $200 more out of your pocket.”
With the fee hike, American Express is betting its affluent cardholders will see value in an expanded roster of luxury credits, even if many never maximize them. For those who do, the Platinum remains the ultimate symbol of high-end spending power, at a price.
CTA: Would you pay $895 a year for Amex Platinum’s expanded perks, or do you think the complexity outweighs the value? Share your take as premium card wars heat up.
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