CUSTOMERS with JPMorgan Chase will soon witness a significant hike on an annual fee this month.
It comes for a beloved credit card, and those with it will now have to spend thousands to see perks.
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JPMorgan Chase confirmed recently in an announcement that the Sapphire Reserve card would have an annual fee increase from $550 to $795 starting on June 23.
That’s a 45% uptick, and some customers are now arguing that the perks aren’t worth it.
“So glad my card recently renewed with the lower fee because what the h*ll is that,” a cardholder wrote in the comments of an Instagram post from travel website Points Guy.
“Yeahhhhhh! $795 so I can get DoorDash! What a deal!!!” another wrote in reference to a complimentary DashPass membership and discounts that come with the credit card.
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PERKS FOR DAYS
Other benefits, according to Chase’s website, include eight times the cash back points on bookings through Chase Travel, whether that’s for hotels, flights, rental cars, cruises, or more.
There’s also four times the points when they’re made directly with an airline or hotel.
Customers can also get $500 back for prepaid bookings made with The Edit, a collection of hand-picked hotels and resorts from Chase.
Another $300 can also be sent back to cardholders annually for most other travel purchases.
Chase Sapphire Reserve credit card is supposed to be the ultimate travel credit card.
There’s also three times the cash back points on dining and up to $300 in statement credits annually.
Cardholders can also get exclusive Sapphire Reserve experiences, complimentary Apple TV+ and Apple Music subscriptions, extra points on Lyft rides, a $120 annual credit from Peleton, and $300 in annual credits from StubHub.
Except, some perks require spending of over $75,000 annually.
These include IHG Rewards Diamond Elite Status (hotels), a $500 Southwest Airlines credit along with A-List Status, and a $250 statement credit for The Shops at Chase.
EXPERT’S THOUGHTS
While the perks are considerable and more than make up for the $795 fee, Matt Schulz, chief consumer finance analyst with LendingTree, said only a small portion of cardholders would spend the required amount.
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“Some people will fully take advantage of these and get much more than their money’s worth on this card,” Schulz told MarketWatch recently.
“But an awful lot of people will not do anything with these credits, and end up making these cards a little more profitable for the issuers.”
Schulz also cited a 2024 survey from LendingTree where six million credit customers in the United States, only 3% of the total amount of cardholders, would consider a $1,000 annual fee.
“There are very few things that people spend $1,000 a year on, on a whim, and there’s a reason for that,” the analyst said.
“It’s a big cost and it’s something that requires your time.”
Consumers are always advised to consider their lifestyle, income, and the perks of the card before applying to find the best fit.
Chase is also offering customers some free cash.
Some could get at least $300 from the financial institution with no strings attached ahead of a July 16 deadline.
Teens can also claim a $100 “high school” bonus before the same deadline, so long as they meet four simple criteria.
