JPMorgan Chase is making a significant move to retain high-income customers with an updated version of its Sapphire Reserve credit card, now priced at an annual fee of $795, a 45% increase from its previous cost. This revision marks the most substantial fee hike since the card’s introduction in 2016.
Despite this steep increase, JPMorgan promises an enhanced value proposition, asserting that cardholders will enjoy over $2,700 in annual benefits, effective from the new card launch on Monday. Loyal users will still have access to many of the existing perks while also gaining new features aimed at improving the earning and spending of points, especially in travel and dining sectors.
Among the notable perks introduced are a new redemption program that doubles the value of points for select travel purchases, and an annual $500 credit applicable to various hotels and resorts within the bank’s portfolio. Additionally, cardholders will receive a $300 dining credit at participating restaurants in the Sapphire Reserve Exclusive Tables network, a $300 credit for purchases made on StubHub or Viagogo, along with subscriptions to Apple TV+ and Apple Music, valued at $250 annually.
Moreover, customers spending over $75,000 in a year will unlock exclusive benefits, including premier statuses with Southwest Airlines and IHG Hotels and Resorts.
In a related move, JPMorgan also launched a Sapphire Reserve business card, mirroring the consumer card’s perks while adding credits for ZipRecruiter and Google Workspace. This strategy directly targets the market occupied by American Express, which has long offered a business version of its celebrated Platinum card.
By focusing on high-value benefits, JPMorgan aims not just to justify the increased fee but to solidify its foothold among affluent customers who seek both prestige and value in their credit products. This approach reflects a growing trend in the credit card industry where premium services cater to an elite clientele.