Amex likely to hike Platinum card fees as Chase ups the ante, says BofA

June 19, 2025 02:55 AM AEST | By Investing

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Amex likely to hike Platinum card fees as Chase ups the ante, says BofA — Image source: Kalkine Media

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Investing.com -- BofA says American Express (NYSE:AXP) may significantly raise the annual fee for its Platinum card following a major fee hike by rival JP Morgan Chase’s Sapphire Reserve offering.

JPMorgan Chase (NYSE:JPM) raised the annual fee on its top-tier Sapphire Reserve card to $795 and launched a new business version. It’s a 44% hike which is the highest among major U.S. consumer credit cards.

The move could pave the way for Amex to increase pricing "meaningfully," with media reports suggesting the Platinum card fee could rise to $895 or even cross $1,000, BofA analysts said.

Amex is expected to unveil its own "major" refresh this fall, in what it calls the largest investment ever in a card revamp.

The competition between the two premium cards is intensifying as both banks load their products with statement credits and benefit-rich features, a model that allows for targeted cardholder engagement and easier cost-sharing with merchant partners, BofA noted.

Chase is also launching a Sapphire Reserve Business card, escalating its challenge to Amex’s business Platinum franchise.

Despite rising reward costs and mounting pressure in the premium segment, BofA maintained its “Buy” rating on Amex, citing strong brand recognition and scale advantages.

Amex shares are trading up roughly 2% at $298. BofA holds a price objective of $318.

This article first appeared in Investing.com

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