In true American Express fashion, a higher annual fee is all but certain to arrive for the Platinum Card this autumn, along with more “benefits” to justify it. Not only do we have a rumored number ($895), but a defense from the AMEX CEO about the increased annual fee.

American Express Platinum Refresh Rumor: $895 Annual Fee, More Coupon-Style Benefits Ahead

In terms of the premium credit card market in the USA, issuers are opting for a “coupon book” approach to benefits: higher annual fees with more discounts and rebates. That’s a winning formula for credit card companies because these extra perks are often acquired very cheaply or at no cost in exchange in exchange for marketing and inclusion in a card product of ideal demographics.

Earlier this year, the Sapphire Reserve increased the annual fee from $550 to $795. Now, Doctor of Credit reports that as part of the autumn refresh of the American Express Platinum cards, the annual fees will rise from $695 to $895.

While that is just a rumor at this point, View From The Wing points out some interesting comments from AMEX CEO Steve Squeri during last week’s earnings call. Asked about higher annual fees for the Platinum card, he first pointed to the success of recent changes to the Gold, Delta, and Hilton cards, suggesting that higher fees are not chasing away customers:

“In each of the recent refreshes we’ve done for our U.S. consumer Gold, Delta, and Hilton cards over the last two years, customer demand has increased, driving double-digit account growth. Revenue growth in each of the three portfolios is up over 30% with card fee revenues up at least 60%. And spend retention remains very high at 98% and we’ve seen no meaningful change after the refreshes. Additionally, the high credit quality of the new customers we’re bringing in has helped us widen the gap between our credit metrics and the rest of the industry.”

In 2024, the American Express Gold annual fee rose from $250 to $325.

Squeri then lays out the game plan for the refreshed Platinum card products:

“As we look ahead to our U. S. Platinum launches, you can expect to see the same formula, providing the best premium experience to card members with more differentiated benefits and more world-class partners joining us to offer card members more value that substantially exceeds the annual fee.

“I’ll tell you what, if you don’t tell anybody, I’ll give you the preview. The look, I think that yes, look, I’m not going to get into ratios here, but what I would say is our strategy has always been to, if we do raise the fee, it has always been to add incrementally a lot more value. In terms of that, yes, that’s the same playbook.”

Squeri essentially confirms what we were all expecting…more discounts, credits, and rebates to offset a higher annual fee. Frankly, I’m surprsied AMEX doesn’t jus double the annual fee, but I suppose turning up the heat more gradually is the best way to cook a frog…

I’ve always struggled with financial organization…staying on top of monthly credits (or even expiring miles!) is something I tend to delegate. This approach does not appeal to me and I find it encourages consumpion tah we oherwise would not even consdier.

But that’s the nature of the US credit card industry (AMEX isn’t unique), and in running a pure cost-benefit analysis, holding onto the card is still going to make sense for most cardholders.

That’s exactly what AMEX is banking on…

Will you keep your AMEX Platinum when the annual fee goes up this autumn?