If you thought inflation was cooling off, think again—at least when it comes to your wallet’s most elite companion: the premium credit card.
This summer, JPMorgan Chase is hiking the annual fee on its Sapphire Reserve card from $550 to a jaw-dropping $795. Meanwhile, American Express is rumored to follow suit with an increase to its $695 Platinum Card later this year.
So why are premium credit card fees in 2025 exploding, and why are millions of users shrugging it off—or even embracing it?
According to a Wall Street Journal report, it’s simple: higher prices make the cards feel more exclusive—and exclusivity sells.
Price Tag Shock… or Status Symbol?
David O’Brien, a 36-year-old lawyer in New York, had no idea the Sapphire Reserve’s fee was jumping 45% until a reporter told him.
“My eyes glaze over with this stuff,” he told WSJ. When he learned the new price, he let out a shocked expletive—then said he’d likely keep the card anyway.
Why? Because despite the fee, users still feel like they’re getting VIP treatment: lounge access, hotel credits, travel perks, and a seat at the table of an ultra-select club.
This is Chase’s third and largest fee increase since the Sapphire Reserve launched in 2016—and they’re betting customers won’t flinch. So far, they’re right.
The Psychology Behind the Swipe
“Raising the fee adds prestige,” said marketing expert Derek Rucker of Northwestern’s Kellogg School. “It’s a luxury item. The math doesn’t even have to make sense.”
And often, it doesn’t.
Chase boasts over $2,700 in yearly cardholder value, according to the WSJ, but many users never redeem the full benefits. In fact, a 2022 Consumer Financial Protection Bureau report found that Americans left over $33 billion in credit card rewards unclaimed—up 40% from pre-pandemic levels.
That means you’re likely paying for perks you never use—and issuers know it.
Use It or Lose It: Perks with Strings Attached
The new Sapphire Reserve includes a $500 hotel credit. Sounds amazing, right?
Not so fast. Chase splits the credit: half must be used in the first six months of the year, and the other half in the second. For high-rolling investment banker Jacob Moon, this feels less like a benefit and more like a burden.
“This card is giving me homework,” he told The Wall Street Journal. “I want freedom, not a schedule.”
The Prestige Arms Race: Amex vs. Chase
While Chase dominates headlines now, American Express isn’t far behind. Analysts expect Amex to raise its Platinum fee above $795 later this fall.
Both companies are pushing a high-spend, high-status model. Chase, for instance, gives top-tier hotel status only to customers who spend more than $75,000 per year on the card.
Meanwhile, startup card providers like Atlas charge even higher fees—$1,000 annually—and offer perks like elite dining concierge access.
Will People Cancel? Probably Not.
A recent Bank of America Global Research survey found that only 9% of Chase users would cancel their premium card over a $100 fee hike.
“Even if fewer people keep the card,” said Atlas founder Patrick Mrozowski, “those who do are far more engaged—and that’s better business.”
And that’s the play: smaller base, bigger spenders.
Should You Keep Your Premium Card?
Here’s what to ask yourself:
- Do you actually use the perks? Lounge access, hotel credits, etc.
- Do you spend enough to unlock bonus tiers? ($50K–$75K+)
- Do the annual fees outweigh the point value you redeem?
- Are you spreading benefits across multiple cards? (This can weaken your value.)
If you’re maximizing every point, then yes—it might still be worth it. But if you’re treating your premium card like a shiny wallet trophy, it’s probably time to downgrade.
