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Over the last few months, we’ve been hearing rumors about Amex possibly launching a new premium credit card. The rumor was the Amex would introduce a new card which would target a new customer segment. This segment would be one that’s right between the Amex Platinum Card and the ultra expensive invitation only Centurion Card.
Premium Credit Card Market
We’ve already seen multiple new entrants and brand refreshes, thereby crowding the field of premium credit cards. Amex has recently refreshed their co-branded portfolio of Delta credit cards. Chase has also launched the United Club Infinite Card. They also increased the annual fee on the Sapphire Reserve to $550. A few years back, a $450 fee was the norm. Amex set the trend and now it seems most members will pay upwards of $500 for a premium credit card.
Doctor of Credit reports about how a reddit user spotted a placeholder in a vendor list for the Titanium and Black card. Previous rumors stated that the new premium card by Amex may be named ‘Optio’.
Amex also doubled the annual fee on the Centurion Card. The card now carries a whopping $7,500 initiation fee and a $5,000 annual fee. So will Amex’s new ultra premium card have an annual fee somewhere in the range of $1,000 to $3,000?
The Pundit’s Mantra
Given current economic conditions and uncertainty, I guess we’ll have to wait and watch whether Amex will launch this card this very year. Even when Amex does launch this card, I feel the new card may have a higher airline fee reimbursement credit, one that we often find hard to use every year. For a card that would charge an annual fee upwards of $2,000, I hope that it would at least offer mid-tier status on Delta and Hilton. While we’d all love Amex to offer a simple travel credit, I don’t think Amex will take that path anytime soon.
However, given how badly the travel industry has been hit in the last couple of weeks, I won’t be surprised if Amex delays the launch of this card until 2021.
Would you be willing to sign up for an ultra premium credit card with an annual fee of $2,500 or more? Let us know in the comments section.
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I have been an Amex Centurion cardholder for more than a decade. I’ve always wondered if the $2500 annual fee was worth it but I’ve renewed every year. I mean, the celebrated “black card” hardly impresses the wait staff or anyone else anymore, I have found. When I got the news that the fee was going up to $5000 I was shocked. To justify the fee, American Express is adding features like a membership in a club that gives you access to a special lounge at airports where you will board your plane by private car to the first-class door.… Read more »
Hi Pete,
Thanks for your comment. That’s great insight and glad that you shared your experience. With the new possible Optio card, I’m skpetical about what Amex may roll out. My fear that they’ll introduce a card with a $2k annual fee but still keep the airline fee credits around.