Premium Rewards Cards: More Perks, Higher Fees

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American Express Platinum
Capital One Venture X
Chase Sapphire Reserve

If you have a premium credit card, you may be paying significantly more for the privilege.

The annual fee for Chase Sapphire Reserve is rising to $795 — a $245 increase from the previous fee of $550 — while American Express is boosting the annual fee for The American Express Platinum Card® to $895, a $200 jump from the former $695 fee.

With this in mind, are the perks worth the higher fees? I'll break down what you receive with each card so you can determine if it's still worth it.

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Elevated perks add value

a happy man using his credit card on his computer

Along with pushing up fees, the cards are revamping their benefits. In addition to other long-standing perks, Chase Sapphire Reserve cardholders now get semiannual credits of $250 for bookings with hotels and resorts that are part of The Edit, Chase’s curated collection of fine hotels and resorts.

Cardholders also earn $150 in semi-annual credits at restaurants that participate in Chase’s Exclusive Tables program; $150 in semiannual credits for concert and event tickets through StubHub and Viagogo; $10 monthly for a Peloton membership; and $10 monthly for Lyft rides. You also receive a complimentary subscription to Apple TV+ and Apple Music, valued at $250 annually.

New benefits for Amex Platinum cardholders include an increased semiannual credit of $300 for stays at properties in Amex’s Fine Hotels + Resorts or Hotel Collection; $100 quarterly in credits for purchases at restaurants that participate with the Resy platform; $25 monthly in credits for an expanded list of digital entertainment subscriptions, including Paramount+ and YouTube TV; $75 quarterly in credits for purchases at fitness-apparel store Lululemon.

Are the perks worth the price?

an arm outstretched draped in shopping bags with a hand holding a credit card

Weigh the benefits. Whether you already have a premium card or are considering opening one, the key consideration is whether you receive enough value from the benefits to make the annual fee worthwhile. Think about which perks fit into your current lifestyle.

If you travel often, access to airport lounges and credits toward hotel stays or flight incidental fees may easily cover the annual fee and more. Those who already subscribe to streaming platforms or other services that a card offers as a complimentary perk may come out ahead.

If you have to stretch beyond your typical spending to use the benefits, however, think twice about whether the card should be in your wallet. “Do the math on your circumstances. Did you save money, or did you go out of your way to use perks to justify the fees?” says Ted Rossman, senior industry analyst at Bankrate. “You could just be treating your card as an expensive coupon book.”

And don’t overlook changes that may be less favorable for you. Under Chase Sapphire Reserve’s previous structure, for example, you could exchange points earned with the card for all bookings through Chase Travel at a value of 1.5 cents each.

But going forward, points are generally worth 1 cent apiece for Chase Travel redemptions. (For details on how and when the point values transition for existing cardholders, go to Chase.)

Chase has instead introduced “Points Boost,” in which points are worth up to 2 cents each only on select hotel and flight purchases through Chase Travel.

If you’re on the fence about whether you’re getting adequate value from your premium card, you could try asking the issuer to reduce the fee for a year. If your issuer won’t provide a discount, consider switching to one of its other cards with a lower annual fee.

Compare your options

We’ve listed the annual fee, points-earning structure and noteworthy perks of premium rewards cards from three major issuers.

Along with the features listed below, all the cards offer credits to cover the application fee for the TSA PreCheck or Global Entry airport security screening programs. For a full rundown of each card’s benefits, visit the issuers’ websites.

American Express Platinum

Annual fee: $895
Points structure: Five per dollar spent on flights and prepaid hotels booked through Amex Travel; two per dollar on other eligible Amex Travel purchases; one per dollar on other spending
Top benefits: Access to airport lounges in various networks, including Amex’s own Centurion lounges as well as Delta Sky Club (10 visits yearly) and Priority Pass Select
$300 in semiannual credits for select hotel bookings
$200 annual credit for incidental fees with one airline of choice
$15 monthly (and an extra $20 in December) in Uber Cash
$120 in annual credits for a subscription to Uber One
$209 annual credit for a CLEAR Plus membership, for expedited airport security screening
$100 in quarterly credits for dining purchases at restaurants that use the Resy platform
$25 in monthly credits for select streaming subscriptions
$75 in quarterly credits for Lululemon purchases
$12.95 monthly credit for a membership with Walmart+

Capital One Venture X

Annual fee: $395
Points structure: 10 per dollar on hotels and rental cars booked through Capital One Travel; five per dollar on flights and vacation rentals booked through Capital One Travel; two per dollar on other spending
Access to Capital One airport lounges, as well as those in the Priority Pass network
$300 annual credit for bookings through Capital One Travel
10,000 bonus points each year on your cardmember anniversary
$100 resort credit when you stay at properties in the Capital One Premier Collection
$50 resort credit when you stay at properties in the Capital One Lifestyle Collection

Chase Sapphire Reserve

Annual fee: $795
Points structure: Eight per dollar on Chase Travel purchases; four per dollar on flights and hotel stays booked directly with the airline or hotel; three per dollar at restaurants; one on other spending
Access to Chase Sapphire airport lounges as well as those in the Priority Pass Select network
$300 annual credit for travel purchases
$250 in semiannual credits for select hotel bookings
$150 in semiannual credits for purchases at restaurants that are part of Sapphire Reserve Exclusive Tables
Complimentary Apple TV+ and Apple Music subscriptions
$25 monthly to spend with food-delivery service DoorDash, and a complimentary DashPass membership, which offers reduced fees on orders ($120 value)
$150 in semiannual credits for purchases with StubHub and Viagogo
$10 monthly in Lyft credits
$10 monthly credit for a membership with Peloton

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

Disclaimer

We may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened. We may not cover every available offer. Our relationship with advertisers may impact how an offer is presented on our site but our editorial selection of products is made independently. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. We calculate a typical annual reward for each card, assuming $36,000 spent annually and less any annual fee. Interest rates, fees, rewards and other terms listed in this article are subject to change. Before you apply for a credit card, check its current terms and conditions with the issuer.

Sean is a veteran personal finance writer, with over 10 years of experience. He's written finance guides on insurance, savings, travel and more for CNET, Bankrate and GOBankingRates.