--- title: $1,000 Annual Fees on Premium Credit Cards Could Soon Be the New Normal description: Premium credit cards from brands like Amex, Chase and Citi have annual fees growing ever closer to $1,000. What's behind this trend? authors: - name: Adam Hardy role: Lead Data Reporter url: https://money.com/author/adam-hardy/ bio: Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and more than a dozen local and regional newspapers. education: University of South Florida, BA, Magazine Journalism at_money_since: 2021 articles: 501 covers: - Credit Cards - Banking - Business - Career Advice - Credit - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - The Penny Hoarder - Forbes Advisor - Creative Loafing - The New York Times - The Washington Post - Bloomberg - Harvard Law School - The Federal Register - National Consumer Law Center - CBS News - Becker's Hospital Review - Business Insider - Mother Jones - The Week - Fortune - The Philadelphia Inquirer - National Association of Student Financial Aid Administrators (NAFSAA) - Education Advisory Board (EAB) - The Institute for College Access & Success (TICAS) - This Morning with Gordon Deal - Empower - Reddit social: - https://www.x.com/hardyjournalism - https://www.linkedin.com/in/hardyjournalism/ editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Credit Cards - Banking - Business - Career Advice - Credit - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2025-09-24T17:57:38.000Z' modified: '2025-09-24T18:12:50.000Z' section: Credit Cards tags: - News word_count: 987 canonical: https://money.com/credit-card-annual-fees-near-1000/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo-illustration of rising stacks of credit cards](https://img.money.com/2025/09/News-CC-Annual-Fees.jpg) America’s premium credit cards are inching toward an eye-popping milestone: a $1,000 annual fee. Last week marked a major step toward that new norm. American Express announced it's raising the yearly fee on its [Platinum card](https://money.com/pr/u4361a49d6d0) from $695 to $895, following a decision by Chase earlier this year to increase the fee for its popular [Sapphire Reserve card](https://money.com/chase-sapphire-reserve-credit-card-review/) to $795. Citi introduced a $595 premium-tier card, the Strata Elite, in July. They join the the long-reigning champs of high annual fees: Amex’s Centurion card ($5,000 and invite only) and Barclay’s 24-carat gold-plated Luxury Card ($995). ## Credit Repair companies can help you repair and improve your credit so you can apply for the credit card of your choice ### Bad credit can weigh you down. Find out what credit repair can offer you. [View Plans](https://money.com/pr/ucb1000a6da2?ap_referrer=%2Fcredit-card-annual-fees-near-1000%2F) Annual credit card fees usually go in one direction: up. That means credit cards' slow march toward four-figure fees is just the beginning. “Unless macro or regulatory factors intervene,” says John Cabell, managing director of payments intelligence at J.D. Power, “I expect that within five years we may see $1,000 or more as a price tag for some high-end products in the U.S." ## Why are annual fees getting so high? When the Chase Sapphire Reserve hit the market in 2016, it carried a $450 annual fee — almost quaint by today’s standards. After a 77% increase in less than a decade, the premium card’s fee, now $795, stands more as a norm than an outlier. But it’s not just ultra-premium cards that are seeing annual fee hikes. In recent months, annual fees for several Southwest Rapid Rewards cards jumped between $30 and $100 per card. The same goes for United Airlines, which increased fees by as much as $170 per card. Cabell says there are several reasons card issuers are hiking fees right now, and they all have to do with benefits. Those rewards aren’t cheap, and demand for them is “ever-increasing,” he says. After all, if a credit card is going to charge an annual fee, the customer expects something in return. Take the Amex Platinum card, for example. While the $200 fee hike to $895 is steep, the company said it is rolling out an additional $2,000 worth of benefits at the same time, plus new benefit-tracking features for cardholders to monitor all their rewards. Among a slew of benefits are $300 per year of entertainment credits usable on streaming services and newspaper subscriptions; $120 for an Uber One membership; $600 in Amex hotel credits and more. At the same time, [cardholders increasingly want a statement piece](https://money.com/cool-credit-card-design-trends/), not just a plastic credit card, according to research from the biometrics and payment firm IDEMIA. Metal cards are especially in vogue, as are custom artwork and flashy designs that include LED lights. Cardholders, and especially Gen Zers, are demanding more personalized cards because they “want to feel special,” James Sufrin, a senior vice president of payment services at IDEMIA, previously told Money. Of course, exclusive branding and design also costs more for card providers, which fee hikes help offset. All of this is ultimately part of a broader campaign to attract high-end customers — the younger, the better — who as Cabell says “are very willing to pay fees for exclusive privileges.” ## The fight for big spenders Fancy card designs, loaded benefits packages and new fee structures all point to one thing: Credit card companies are duking it out to lure in high-income earners — and keep them spending. That’s largely because those are the people who are buying a bunch of stuff in today’s economy. According to [Moody’s Analytics](https://www.economy.com/getfile?q=8D6D0EAF-E677-4FDA-988D-60C0E9D34A8B&app=download), the top 10% of earners in the U.S. now account for nearly half of all retail spending nationwide. (Meanwhile, lower income folks have been [pulling back](https://www.bostonfed.org/publications/current-policy-perspectives/2025/why-has-consumer-spending-remained-resilient.aspx) on retail spending while struggling with elevated levels of debt.) So even if that means providing far fewer cards to focus on wealthier customers, it’s a winning strategy. “These cards are profitable for issuers,” Cabell says. And it's not just because of the steep annual fees. The real money is in swipe fees, which are charged to merchants who accept credit card payments. Usually these fees run between 1% and 3% of the transaction cost, sometimes with an additional flat fee. In effect, credit card companies get a slice of every purchase the card is used for — on top of annual fees and any interest on revolving balances. Last year, the credit card industry made [over $230 billion](https://insights.cmspi.com/soir-2025) in swipe fees alone, sparking condemnation from [merchant groups](https://merchantspaymentscoalition.com/credit-and-debit-card-swipe-fees-totaled-236-billion-2024-over-one-quarter-higher-previously) who are in favor of more [regulation on these charges](https://money.com/credit-card-competition-act-rewards/). As for the annual fees, which cardholders pay, their role is partially psychology. Yes, they are a stand-alone revenue driver, but they serve another purpose: High annual fees further incentivize cardholders to use that specific card to make large purchases in order to reap its benefits, thus creating a win-win for card providers. And it seems some customers don’t mind it, either. "Honestly, I thought they'd turn this into a useless coupon book credit card," one Reddit user [wrote](https://www.reddit.com/r/finerds/comments/1nnt151/the_new_amex_platinum_is_officially_confirmed_but/) this week, discussing the revamped $895 Amex card. "But I was wrong. At least partially." "Yes, it is a coupon book credit card," the person added, "but it's a good one." This reaction is not unique. According to J.D. Power’s 2025 credit card satisfaction [survey](https://www.jdpower.com/business/press-releases/2025-us-credit-card-satisfaction-study), higher annual fees are actually linked to higher overall satisfaction with [credit cards](https://money.com/best-credit-cards/). The survey found that people who have a credit card with an annual fee said they were more satisfied than customers who used cards with no fees. When the fee was $500 or more? Satisfaction was even higher. This dynamic could potentially create a curious feedback loop in which more expensive credit card fees lead to higher satisfaction, and vice versa. “As long as the perceived mix of benefits and rewards seems rich enough,” Cabell says, “satisfaction could support increased fees.” ## Find a Credit Repair company that works for you ### 🥇 Most Affordable Credit Help Company! ![View Plans](https://s3.consumersadvocate.org/prd/image/image/28241/medium_ae18ab6b-f004-4597-a78c-b5057ebf3778.png) Our Partner [View Plans](https://money.com/go/e806b95845d7?bidid=4111616989&pmeta=p129-c527-u25367&ptid=670485653&ptoken=8f3e8e0192e781ba9646a387123d4797) ### Take Steps Toward Improving Your Credit with a Trusted Legal Team ![View Plans](https://s3.consumersadvocate.org/prd/image/image/541/medium_AEPRGHMZaPsbrAuaWpZtkFWwSMTooS.png) Our Partner [View Plans](https://money.com/go/445acb605087?bidid=4111616987&pmeta=p129-c527-u25367&ptid=670485653&ptoken=24444d644142b48044276c491c4d9787) ### Offers a single, low-cost credit repair package ![View Plans](https://s3.consumersadvocate.org/prd/image/image/1992/medium_Sky_Blue_Credit_Repair_Logo.png) Our Partner [View Plans](https://money.com/go/a2246c0eb87f?bidid=4111616988&pmeta=p129-c527-u25367&ptid=670485653&ptoken=0a36b04580d598ae636a700201f9669b) ### All plans include unlimited disputes to all three credit bureaus ![View Plans](https://s3.consumersadvocate.org/prd/image/image/544/medium_AzCOfmOSdIObukHTtkAFkkVcednFPx.png) Our Partner [View Plans](https://money.com/go/1a632f6fa858?bidid=4111616990&pmeta=p129-c527-u25367&ptid=670485653&ptoken=7ae15a1c7a83d681b724ab2649e7b397) ### Even the most basic packages include financial management tools ![View Plans](https://s3.consumersadvocate.org/prd/image/image/29349/medium_5f909068-0d8c-41f9-91b3-62c42c6b942c.webp) Our Partner [View Plans](https://money.com/go/8af88d75e31d?bidid=4111616991&pmeta=p129-c527-u25367&ptid=670485653&ptoken=de73f69cc2d34555f97feade9a5f0f39) ![](https://s3.consumersadvocate.org/prd/image/image/28241/medium_ae18ab6b-f004-4597-a78c-b5057ebf3778.png) Reclaim control of your credit with Credit Saint [View Plans](https://money.com/pr/za8c6eaee60a?ap_referrer=%2Fcredit-card-annual-fees-near-1000%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/credit-card-annual-fees-near-1000/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Credit Cards", "item": "https://money.com/credit-cards/" }, { "@type": "ListItem", "position": 3, "name": "Fees", "item": "https://money.com/fees/" }, { "@type": "ListItem", "position": 4, "name": "$1,000 Annual Fees on Premium Credit Cards Could Soon Be the New Normal" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/credit-card-annual-fees-near-1000/#webpage", "url": "https://money.com/credit-card-annual-fees-near-1000/", "name": "$1,000 Annual Fees on Premium Credit Cards Could Soon Be the New Normal", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2025-09-24T17:57:38.000Z", "mainEntity": { "@id": "https://money.com/credit-card-annual-fees-near-1000/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/credit-card-annual-fees-near-1000/#breadcrumb" }, "dateModified": "2025-09-24T18:12:50.000Z" }, { "@type": "NewsArticle", "headline": "$1,000 Annual Fees on Premium Credit Cards Could Soon Be the New Normal", "articleSection": "Credit Cards", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2025/09/News-CC-Annual-Fees.jpg", "width": 2800, "height": 1920, "caption": "News-CC-Annual-Fees" } ], "author": [ { "@type": "Person", "name": "Adam Hardy", "url": "https://money.com/author/adam-hardy/", "@id": "https://money.com/author/adam-hardy/#author", "description": "Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. 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