Popular Amex Cards Could Soon See Fee Hikes. Here's Why
KEY POINTS
- Many of the best American Express cards charge annual fees.
- Recent statements by the CEO suggest some of its top cards could soon be "refreshed" to include higher fees and more features.
- Cardholders will need to consider whether the benefits and perks they're offered justify paying the higher fees.
Many American Express cards charge fees, and sometimes those fees are very high. The Platinum Card® from American Express, for example, comes at an annual cost of $695 (see rates and fees). The cost of being a card member may be about to get higher, though.
Some recent statements by Amex CEO Steve Squeri -- combined with the fact that several cobranded cards have already seen price increases -- suggest that some of the most popular cards in Amex's lineup could soon be more expensive.
Here are the details about why a price increase could be on the horizon.
Evidence suggests fee hikes are imminent
Unfortunately for current and future Amex customers, there's plenty of evidence that some popular cards will soon come at a higher cost. First and foremost, the CEO has signaled price increases are coming down the line.
In a recent quarterly earnings call with investors, Squeri made clear that making changes to cards in its lineup are a top priority -- and those usually include fee hikes. Squeri stated "refreshes" are a key part of the company's business strategy because they help increase demand for Amex cards, and they have "been a strategy that has worked very, very well for us."
While Squeri didn't say which cards are next on the line for changes, there are a few top possibilities.
Which cards could be impacted?
One contender for a fee hike is the popular The Platinum Card® from American Express. The last time it was overhauled was the summer of 2021, and the company has a history of making modifications to this card around every three to four years, so it's due.
On American Express' Secure Website.
Terms apply
On American Express' Secure Website.
Terms apply
Good/Excellent (670-850)
Intro APR
Purchases: n/a
Balance Transfers: n/a
APR
See Pay Over Time APR
Rewards Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel. Earn 1X Membership Rewards® Points on other purchases. Terms and limitations apply.
1X-5X Membership Rewards® Points
Annual Fee
$695
Welcome Offer Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership.
80,000 Membership Rewards® Points
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This luxury travel card has some of the most prestigious perks you'll find — access to over 1,400 airport lounges, elite status with Hilton and Marriott Bonvoy, and spending credits worth over $1,500 in value every year. Just be ready for the hefty annual fee, which can be offset in the first year with a welcome bonus worth $800 in points. Terms apply.
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- Big welcome offer
- Substantial spending credits
- Airport lounge access
- Hotel benefits
- Flexible travel points
- Annual fee
- Limited bonus categories
- Spending credits can be complicated to manage
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- Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.
- Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
- $200 Hotel Credit: Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings through American Express Travel using your Platinum Card®. The Hotel Collection requires a minimum two-night stay.
- $240 Digital Entertainment Credit: Get up to $20 back in statement credits each month on eligible purchases made with your Platinum Card® on one or more of the following: Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peacock, and The Wall Street Journal. Enrollment required.
- The American Express Global Lounge Collection® can provide an escape at the airport. With complimentary access to more than 1,400 airport lounges across 140 countries and counting, you have more airport lounge options than any other credit card issuer on the market. As of 03/2023.
- $155 Walmart+ Credit: Save on eligible delivery fees, shipping, and more with a Walmart+ membership. Use your Platinum Card® to pay for a monthly Walmart+ membership and get up to $12.95 plus applicable taxes back on one membership (excluding Plus Ups) each month.
- $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to your Platinum Card®.
- $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only. Terms Apply.
- $199 CLEAR® Plus Credit: CLEAR® Plus helps to get you to your gate faster at 50+ airports nationwide and get up to $199 back per calendar year on your Membership (subject to auto-renewal) when you use your Card. CLEARLanes are available at 100+ airports, stadiums, and entertainment venues.
- Receive either a $100 statement credit every 4 years for a Global Entry application fee or a statement credit up to $85 every 4.5 years for a TSA PreCheck® (through a TSA official enrollment provider) application fee, when charged to your Platinum Card®. Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost.
- Shop Saks with Platinum: Get up to $100 in statement credits annually for purchases in Saks Fifth Avenue stores or at saks.com on your Platinum Card®. That's up to $50 in statement credits semi-annually. Enrollment required.
- Unlock access to exclusive reservations and special dining experiences with Global Dining Access by Resy when you add your Platinum Card® to your Resy profile.
- $695 annual fee.¤
- Terms Apply.
The last time the The Platinum Card® from American Express was updated, its annual fee was increased from $550 to $695. It's likely a fee increase will happen again when the card gets a facelift, especially since the CEO signaled he believes there's a lot of room for the price to grow. At the end of 2022, he made clear the cost would "go as high as the value allows us to go," and pointed out that the fee in Mexico for the The Platinum Card® from American Express was $1,000.
The American Express® Gold Card may be another prime target, as it hasn't seen a major refresh since 2018, and its annual fee has stayed steady at $325 for years (see rates and fees).
While these cards are among the most likely to see prices rise, they probably aren't the only ones that will see a rate increase in the near future. Squeri told investors that most or all of Amex's 40 cards would see refreshes. As the recent changes to Delta cobranded cards show, those changes usually include price increases.
The Delta SkyMiles® Reserve American Express Card saw its fee bumped by $100 when new perks were added, including new credits for hotel stays, ride-hailing services, and Resy. The other five Delta cards in Amex's lineup also saw fee hikes, including the lowest-tiered Delta SkyMiles® Gold American Express Card. This card saw a $51 annual fee increase, going from $99 to $0 introductory annual fee for the first year, then $150. (See rates and fees.) Squeri said the shift went really well, even exceeding the company's expectations, so it's clearly a strategy the company will implement again.
Will Amex cards still be worth it?
If American Express does raise fees on popular rewards cards, past history has shown most consumers will stick with the company. In fact, the company is raking in the cash from annual fees, reporting a 16% increase in revenue from those fees in the first quarter of 2024.
But whether you should keep your card or not depends on your personal situation. You'll need to look at how high the new fee is, what perks you'll actually take advantage of, and whether the costs outweigh the benefits. If they do, you'll have to pony up and pay. If they don't, there are plenty of other great credit cards out there worth considering.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
For rates and fees for the American Express® Gold Card, click here
For rates and fees for the Delta SkyMiles® Gold American Express Card, click here
For rates and fees for the Delta SkyMiles® Reserve American Express Card, click here
For rates and fees for the The Platinum Card® from American Express, click here
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