Amex rival reveals fanciest credit card ever with astonishing array of perks worth more than $2.7k
JPMorgan Chase is rolling out a major update to its premium Sapphire Reserve credit card — and with it, a hefty 45 percent jump in the annual fee.
Starting June 23, the annual cost will rise to $795, up from $550. It's the biggest fee increase since the card's launch in 2016, but the bank is betting a new suite of perks will keep cardholders on board.
Chase says the revamped card will offer more than $2,700 in value, with expanded benefits across travel, dining, and entertainment.
That includes a $500 credit at its network of hotels and resorts, a $300 dining credit at select restaurants, and $300 in credits for StubHub or Viagogo purchases.
Subscribers will also receive complimentary access to Apple TV+ and Apple Music, valued at $250 annually, plus a new program that doubles the redemption value of points on select travel bookings.
High spenders — those who charge $75,000 or more annually — will unlock additional perks, including elite status with Southwest Airlines and IHG Hotels & Resorts.
Later this year, Amex is expected to update its Platinum card, which currently carries a $695 annual fee, and analysts expect that fee to rise.
Last year, Amex copied Capital One with change on airport lounge access.
Despite the steeper cost, Chase is touting a suite of new perks it says add up to over $2,700 in value, including expanded travel and dining credits, access to airport lounges, and new bonus programs through its travel platform.
JPMorgan is also introducing a Sapphire Reserve business card, with the same $795 fee and similar benefits, including credits for ZipRecruiter and Google Workspace.
The move brings the bank into more direct competition with American Express, whose Platinum Business card has long dominated the premium space.
Since debuting in 2016, Sapphire Reserve has helped JPMorgan become a major player in high-end credit cards by offering perks similar to Amex — but at a broader appeal.
Its rich sign-up bonuses and travel credits made it popular not just with the affluent, but also with younger, budget-conscious consumers.
Now, the fee hike raises the question: is the card still worth it?
'When the Sapphire Reserve first came out, it was a solid middle-class play that offered champagne travel on a beer budget,' said Ted Rossman, senior analyst at Bankrate.
'These premium cards are going more luxury, and I wonder if the $800 fees are becoming too much for some to stomach.'
Still, both JPMorgan and Amex appear committed to a subscription-style model where increasingly rich benefits justify rising costs.
Credit cards get lounge access
'These high-rate cards aren't for everyone, that's for sure,' said KBW analyst Sanjay Sakhrani. '
But JPMorgan and Amex believe that if the perks are valuable enough, they can build loyalty — and keep people spending.'
Meanwhile, a recent report showed how the value of credit card reward points has been gradually falling - as inflation has taken hold.
A reward point has long been worth around one cent when used to cover other purchases.
But one cent has lost around 20 percent of its purchasing power since 2018, according to the Bureau of Labor Statistics.
This means a point has also fallen in value by about the same amount, according to The Wall Street Journal.
If you built up 50,000 points with a major credit card issuer in 2020 and still have not spent them, they are now worth about 41,300.
