American Express Platinum Refresh Hikes Annual Fee and Perk Potential

American Express is overhauling its Platinum credit cards, promising consumer and business customers more than $3,500 in value each year through expanded lifestyle and business perks. Alongside the upgrades, the company will raise annual fees.

The move marks Amex’s latest efforts in the premium card market — and puts pressure on rival issuers to reassess their own high-end offerings.

Not every issuer has to begin at square one. Some recently completed comprehensive reviews of their premium card offerings after this summer’s shifts in the market.

In late June, Chase Bank rolled out new and enhanced versions of its Sapphire Reserve cards for business and consumer customers, respectively. 

Not to be outdone, Citi launched a new card of its own at the end of July. The Citi Strata Elite card brings cardholders a bevy of high-end benefits.

Chase and Citi both unveiled new premium credit card products over the summer.

American Express, Chase, and Citi dominate the credit card market, backed by the budgets and teams needed to pack their rewards programs with premium perks.

Smaller issuers may not have the same resources, but by tracking the features rolled out by these industry leaders, they can decide which benefits their own customers would value most.

Credit card companies can learn about what types of benefits their customers value through surveys and interactions with them.

Issuers who evaluate potential card benefits against customer preferences can avoid wasting time and money on features that won’t appeal to their audience.

American Express’s updated Platinum card offers new perks, including statement credits for purchases at brands like lululemon and Resy. Cardholders receive the credits in the quarter after the qualifying purchase is made.

Companies using the updated business Platinum credit card from American Express can rack up rewards when they complete eligible transactions from outfits such as Dell Technologies and Adobe.

Chase also introduced upgraded benefits over the summer for its Sapphire Reserve customers who use the card to make certain purchases, such as buying equipment from Peloton. Rewards that align with everyday purchases can grow customer lifetime value.

American Express is taking that approach with its Platinum card, giving members access to exclusive offers from brands such as Canada Goose and Hertz.

“There is really nothing like Platinum membership — we offer more value than ever, and with the scale of our lounge, dining, and hotel programs, we make it easy for our card members to access this value,” Howard Grosfield, Group President, U.S. Consumer Services at American Express, said in the company’s press release.

Some people may think of their credit card as simply a payment tool, overlooking the rewards it can bring them. 

Others may have an unfavorable opinion of credit cards in general due to the different fees an issuer may have imposed on them in the past.

By tying its name to a beloved brand, a credit card company can leverage the reputation of that business and gain favor in a cardholder’s eyes. 

So the next time a small business owner pulls out their American Express Business Platinum card, they may have the rewards they stand to earn with Dell in mind as opposed to the interest fees they racked up in the past on another card.

Both the new business and consumer Platinum cards from American Express come with an $895 annual price tag. That is a significant hike from the $695 per year the company used to charge on its Platinum cards. And it represents a jump over what Chase charges for the Sapphire Reserve card, which jumped from $550 to $795 this year.

While paying an increased annual fee is never popular, Dave Grossman, Founder of Your Best Credit Cards, told us he’s impressed with how Amex approached the refresh.

“They came up with a wide range of additional credits that should be easy for people to use which more than cover the additional cost,” Grossman said. “Importantly, they didn’t take a bunch of benefits away in order to do it.”

American Express likely wouldn’t raise the fee unless it was confident cardholders could handle it. On its Platinum card product page, the company makes a point of highlighting the dollar value of key benefits.

Other issuers could follow suit by being upfront about the savings their cards deliver.

If an issuer can present a benefit’s value in dollars, then prospective cardholders can do the math for themselves to learn what the card can mean to their bottom line. That practice can also help a potential customer overcome concerns about paying a hefty annual fee.

A distinctive card design can make an impression when cardholders use it at the checkout counter. American Express’s new Platinum cards aim to do just that.

For a limited time, new and existing Platinum customers in the U.S. can select American Express’s mirror card design to give their card more visual pop. The company is betting that a more eye-catching look could enhance the sense of value cardholders associate with its Platinum products.

American Express has taken top honors for four years in a row on J.D. Power’s review of credit card satisfaction levels for small businesses in the U.S. The company may be looking at five years in a row after releasing its latest card for business customers.

American Express offers businesses tools to help them better manage their cash flow.

Businesses that own a Platinum card can request additional cards for employees at a discounted annual rate. And American Express will continue to offer tools to help businesses manage their money, according to the company’s release.

“For over 30 years, American Express has been a trusted partner to small businesses,” Raymond Joabar, Group President, Global Commercial Services at American Express, said via the release.

“The [Platinum card for businesses] reflects how business owners work today, offering easy-to-use cash flow management tools and no preset spending limit designed to help them run and grow their companies with confidence,” Joabar added.