What's Happening?
American Express is raising the annual fee for its Platinum card to $895, marking a $200 increase from the previous fee. This change comes with a boost in total benefits to an estimated $3,500 annually, aimed at high-end consumers. The new perks include $400 in dining credits at Resy-partnered restaurants, $300 annual credit for purchases at Lululemon, and $200 toward Oura smart rings. The company is also expanding its global lounge network and securing new brand partnerships to enhance lifestyle and travel benefits for cardholders.
Why It's Important?
The fee increase and expanded benefits reflect American Express's strategy to compete in the luxury credit card market, targeting affluent consumers who value premium rewards. The move comes as competitors like JPMorgan Chase and Citigroup enhance their premium card offerings. By offering a comprehensive suite of perks, American Express aims to retain cardholders despite economic uncertainty and rising interest rates. The success of the Platinum card will depend on its ability to deliver value that justifies the higher fee.
What's Next?
The changes will take effect for existing cardholders starting January 2, 2026. American Express plans to continue investing in app functionality to streamline the redemption of credits and benefits. The card's performance following the refresh will be closely monitored by industry analysts, especially as competitors continue to roll out comparable offerings in the premium space.
