The price jump is part of an ongoing shift for credit card companies and airlines toward premium rewards and high-end travelers.
Chase, the largest U.S. credit card issuer, announced major changes on Tuesday to its Chase Sapphire Reserve card, popular among points enthusiasts and high-end reward travelers, and unveiled a Sapphire Reserve for Business card that offers a new tier of premium perks for customers who spend at least $120,000 a year.
Sapphire Reserve customers will see an expansion of benefits in the usual categories — dining, hotel and lifestyle credits — but also a heftier annual fee: $795 per year, up from $550, which surpasses annual fees for other premium travel cards from companies like American Express. (On Monday, American Express announced its own plans to update its premium cards, with details to come later this year.)
Secondary cardholders, known as authorized users, will also see a higher annual fee of $195, up from $75. The increases will take effect after Oct. 25, on the cardholder’s annual renewal date. New cardholders will be subject to the new fees after June 23, the day the new cards open to applicants. Details on a welcome bonus for the new cards will also be announced that day.
Credit card fees are a billion-dollar enterprise. Across the industry, the total amount paid in annual fees has more than doubled in the last decade to $6.4 billion in 2022, up from $3.0 billion in 2015, according to a 2023 consumer credit report from the Consumer Financial Protection Bureau. The annual fee for the Sapphire Reserve card will have increased 77 percent since it was introduced at $450 per year in 2016.
The announcement from Chase highlights an ongoing shift for credit card companies and airlines toward premium rewards and travelers willing to spend to acquire them.