American Express Raised Its Platinum Annual Fee to $895. Here's What the 29% Hike Means for Card-Fee Revenue.
Retention rates remain high despite the fee hike.
Overview
American Express (NYSE: AXP) recently raised the price of its exclusive Platinum card from $695 to $895. It's the first increase since 2021, when it was raised from $550 to $695.
The company offers a long list of perks with the "refresh," worth $3,500 if used in full, plus the prestige of owning a Platinum card and miles for every dollar spent. But the major perk is for Amex, since card fees account for a major portion of total revenue and provide a recurring source of income. American Express will report second-quarter earnings on July 24. Here's why card fees matter.
Details
American Express pioneered the credit card fee model, which has evolved into a subscription model of sorts, with members paying an annual fee for the privilege of using an Amex card. Not all cards come with fees, but the company targets affluent spenders who crave prestige and perks. Seventy-three percent of the 3.1 million new cards in the 2026 first quarter were fee-based.
Source
Originally published at www.fool.com.