American Express Raises Platinum Card Fee to $895, Adds New Perks
American Express has increased the annual fee for its Platinum Card to $895, a rise of $200. Despite this increase, many cardholders express satisfaction with the updated benefits that accompany the fee hike. The new perks include credits for purchases at popular retailers such as Resy, Lululemon, and Oura, which some users believe enhance the card’s overall value.
The fee adjustment contrasts sharply with the backlash faced by the Chase Sapphire Reserve earlier this year when its fee jumped from $550 to $795, provoking widespread discontent among cardholders. Unlike the uproar surrounding Chase’s changes, American Express appears to have navigated this adjustment with minimal pushback.
New Benefits Resonate with Cardholders
Many American Express Platinum cardholders feel the new benefits justify the increased fee. The card now offers a $75 quarterly credit for purchases at Lululemon, a $400 credit for dining experiences booked through Resy, and a $200 credit for purchasing an Oura ring, Uber One membership, or Walmart+ membership. Such offerings are designed to appeal to a wide range of users, though their value is contingent on individual preferences.
For instance, while the Lululemon credit may excite fitness enthusiasts, it may not be as appealing to those who do not shop there. The introduction of these “coupon-like” perks marks a significant shift from the previous rewards structure focused primarily on point accumulation. Consequently, cardholders must now evaluate whether the new perks align with their personal spending habits and lifestyle.
Online discussions reveal that some users are creatively exploring ways to maximize the benefits, such as purchasing Lululemon gift cards to resell for cash. This behaviour indicates a desire to extract value from the perks even if they do not directly match personal use.
Mixed Reactions to the Fee Increase
The reception of the fee increase has been notably varied. While some users, like Ben Bergman, report feeling enthusiastic about the new offerings, others are less convinced. Bergman noted, “I already used my Resy credit last night. I’ll also use the Lululemon and $400 hotel one very easily.” He highlights how the benefits outweigh the new fee for him, as he also receives a $300 credit at Equinox gym.
Conversely, some potential cardholders feel disheartened by the fee hike, particularly those who do not frequently dine out or travel. The perception of value remains subjective, with some individuals feeling that the new fee does not equate to adequate benefits for their lifestyle.
In light of these changes, American Express’s approach seems to be a strategic effort to retain its customer base while appealing to new users. The Platinum Card’s evolution reflects broader trends in the premium credit card market, where card issuers continuously adapt their offerings to meet changing consumer preferences.
Overall, while the fee increase may give some cardholders pause, the perceived value of the new perks could serve to keep the American Express Platinum Card a popular choice in competitive financial landscapes. As users navigate their options, the decision to maintain or cancel their cards will likely hinge on how effectively they can leverage these new benefits into tangible rewards.
