Premium card now costs $795 as bank aims to attract affluent spenders
JPMorgan Chase is significantly increasing the annual fee for its Sapphire Reserve card to $795, a 45% jump and the largest hike since the card’s debut in 2016. To justify the price, the bank is rolling out over $2,700 in new and existing benefits aimed at affluent U.S. consumers who prioritize travel, dining, and lifestyle perks.
Starting Monday, cardholders will gain access to an expanded portfolio of travel and dining benefits. Among the headline perks: a $500 annual hotel credit, $300 in exclusive dining offers, $300 in event credits for StubHub or Viagogo, and complimentary Apple TV+ and Apple Music subscriptions, valued at $250 per year.
Perks tied to high spenders and travel incentives
The revamped card will maintain existing travel and point redemption programs, while introducing a new redemption model that doubles the value of points used on select travel bookings. Customers spending $75,000 or more annually will unlock elite status with partners like Southwest Airlines and IHG Hotels & Resorts.
JPMorgan is also introducing a business version of the Sapphire Reserve card, featuring similar perks and a matching $795 annual fee. Additional benefits for business users include credits for services like ZipRecruiter and Google Workspace, signaling a direct challenge to American Express and its long-standing Platinum business card.
Luxury shift may alienate some users
The Sapphire Reserve initially disrupted the credit card market with generous signup bonuses and rich travel rewards, offering accessible luxury to a broad swath of consumers. Now, with the move upmarket, analysts say JPMorgan risks pushing out middle-tier users who may find better value in alternatives like the Sapphire Preferred or cards from Capital One and AmEx.
“This used to be a middle-class card offering luxury perks on a budget,” said Bankrate’s Ted Rossman. “Now, at $800 a year, it’s becoming a high-end product that not everyone will want or need.”
Competing in a crowded premium space
JPMorgan’s fee increase comes as American Express is reportedly preparing updates to its Platinum card, currently priced at $695. Analysts expect AmEx to raise its own fee while expanding benefits, continuing the trend of high-priced cards offering layered perks to justify their costs.
“The model is clear,” said Sanjay Sakhrani of KBW. “These banks are building subscription-like ecosystems. If customers use the perks, the value holds. If not, they may walk.”
With crowded airport lounges, rising travel costs, and shifting consumer behavior, the premium credit card space is evolving. Whether the Sapphire Reserve’s new benefits can keep pace with rising expectations remains to be seen.
