Is a credit card with an $800 annual fee worth it? For most people, almost certainly not. But that’s how much Chase is now charging for its flagship Sapphire Reserve Visa card: $795 to be exact — a classic sticker-shock concealer — up $245 from its previous annual fee of $550.
The higher-fee card comes with what Chase describes as “more than $2,700 in annual value.” That’s mostly in the form of rebates for purchases at select merchants, including luxury hotel partners, Lyft, Peloton, DoorDash, and StubHub.
It’s a great example of how card issuers like Chase and American Express are trying to transform their highest spenders from mere points collectors into “members” of a more elaborate lifestyle subscription, increasingly based around a treasure hunt of “value” they unlock through — of course — more spending.
Amex has been driving this movement with its Platinum card for the past several years — now sporting a $900 annual fee (sorry! $895) — including access to a growing network of branded airport lounges, priority restaurant reservations, and its own version of these coupon booklets designed for upwardly mobile Millennials.
If I sound skeptical about the value proposition here, let’s walk through how a few of these rebates work.
Chase, for instance, lists $300 in DoorDash credits as one of the main features of the new Sapphire Reserve.
But to use the full $300 in credits, you have to really do some work, making 36 transactions over the course of a year.
