American Express raises fees while boosting Platinum Card benefits
- American Express announced an update to its Platinum Card that includes new perks and an annual fee increase.
- The card now features several credits totaling approximately $3,500 in value for cardholders.
- These changes reflect American Express's response to increasing competition in the high-end credit card market.
In the United States, on Thursday, September 18, 2025, American Express announced a significant update to its high-end Platinum Card, introducing a suite of new perks alongside a higher annual fee. The annual fee has risen to $895, marking a $200 increase from previous years. This revamp includes a $400 dining credit, a $600 hotel credit, a credit for athletic apparel at Lululemon, and an increased digital entertainment credit of $300. These benefits can be redeemed through American Express's platforms and are designed to add substantial value for cardholders. The notable shift in fee structure aims to deliver benefits that surpass the new cost of ownership. The company intends to maintain appeal among cardholders by ensuring that the estimated total value of the perks now amounts to approximately $3,500—a figure that executives believe justifies the increased cost. Howard Grosfield, the group president of U.S. Consumer Services at American Express, emphasized that the goal is to facilitate easy access to benefits exceeding the annual fee. This effort highlights the competitive landscape of premium credit cards in which American Express operates. American Express has historically dominated the premium credit card market, but the rise of competitors from major banking institutions has intensified. Rival companies like JPMorgan Chase and Citigroup have introduced their own high-end credit products featuring similar perks and benefits. In particular, Chase updated its Sapphire Reserve Card in June, creating a direct challenge to the Platinum Card. Citigroup's introduction of the Strata Elite Card and Capital One's Venture X card underline the surge in market competition. The landscape has evolved from a period where American Express enjoyed a near monopoly on premium credit cards to a highly competitive realm. With various players intensifying their offerings, there is an ongoing struggle to retain customer loyalty and entice new members. The recent changes to the Platinum Card reflect the company's strategic response to these dynamics, as they seek to enhance customer satisfaction while adapting to market demands.