JPMorgan is raising the annual fee on the Chase Sapphire Reserve Card to $550 for some users

[tacobell fan]

 

The popular Chase Sapphire Reserve credit card is about to get more expensive.

JPMorgan Chase & Co. is boosting the annual fee for customers to $550 from $450 as it adds new perks with partners such as DoorDash and Lyft Inc., according to bank spokeswoman Ashley Dodd. For new cardholders, the increased annual fee will go into effect on Jan. 12, while existing customers will pay the new fee once their cards renew starting April 1.

The increase follows a move by rival American Express Co. in 2017, when the company raised the fee on its Platinum card to $550 after adding benefits like a $200 annual Uber credit to its bevy of benefits. The two firms have been battling for premium millennial customers since 2016, when JPMorgan debuted the Sapphire Reserve.

JPMorgan said Tuesday that it’s adding the perk of a year of lower DoorDash fees, and on Wednesday said it’ll give Sapphire Reserve customers $120 in statement credits for the food-delivery service. The bank also will partner with Lyft to offer Sapphire Reserve members a free year of Lyft Pink, a new monthly membership program from the ride-sharing app, as well as 10 points per dollar spent with the company, Dodd said.

 

The bank is trying to lure new customers by targeting services that are surging in popularity. JPMorgan said customers more than doubled their spending on food-delivery services in the past year, with the average person ordering in a least once a month. Most Sapphire Reserve customers use ride-hailing apps at least once a week, according to a person with knowledge of the matter who asked not to be identified discussing internal data.

Since JPMorgan introduced the luxury card, industry watchers have wondered how the bank could make money on it while still offering generous benefits like three points per dollar spent on dining and travel, which can be redeemed for more than one cent per point. Analysts at Sanford C. Bernstein & Co. estimated in 2016 that the bank wouldn’t break even on its investment in the card for more than five years.

Many of the world’s biggest card issuers have been scaling back perks and introductory offers in recent months as the industry begins to prepare for an eventual downturn in consumer credit. Last year, Citigroup Inc. discontinued free trip insurance and price-protection guarantees on its U.S. cards, and AmEx’s chief executive officer said last month that the war for premium consumers has begun to level off.

 

[pamogudu]

This was expected after the free doordash pass for 2 years that many got yesterday.

[jbourne]

3 minutes ago, pamogudu said:

This was expected after the free doordash pass for 2 years that many got yesterday.

Free door dash pass endi 

I never ordered food through these apps in my life 🙄

[tacobell fan]

4 minutes ago, pamogudu said:

This was expected after the free doordash pass for 2 years that many got yesterday.

it's like throwing dog food and expecting $$

[jbourne]

Just now, tacobell fan said:

it's like throwing dog food and expecting $$

Asalu ee points cards premium credit cards worthy of their yearly fee anatava Ankul never had a privilege of having premium cards 

[pamogudu]

3 minutes ago, jbourne said:

Free door dash pass endi 

I never ordered food through these apps in my life 🙄

Doordash introduced door pass. Their subscription service in 2018. Monthlyy 10$ . Most of the nearby restaurants nunchi free delivery and service fee konchem discount.

[tacobell fan]

1 minute ago, jbourne said:

Asalu ee points cards premium credit cards worthy of their yearly fee anatava Ankul never had a privilege of having premium cards 

Bokka man. It also depends on the person. I had 200k+ points but i never really used it for anything. They charge you more APR, force you to spend more indirectly so this is not really meant for avg guy/girl. They cannot afford it. They charge me $450/year and give $300 in tickets but heck they can't cover 1% of my travel expense. 

[pamogudu]

4 minutes ago, tacobell fan said:

it's like throwing dog food and expecting $$

Haha yeah. Lyft subscription service kooda 1 year free anta. It costs 23$ per month. Nenu SFO lo vunta. Actually both doorpass and lyft works out for me.

[pamogudu]

1 minute ago, tacobell fan said:

Bokka man. It also depends on the person. I had 200k+ points but i never really used it for anything. They charge you more APR, force you to spend more indirectly so this is not really meant for avg guy/girl. They cannot afford it. They charge me $450/year and give $300 in tickets but heck they can't cover 1% of my travel expense. 

You should checkout Chase rewards portal to book flights,hotel or rental car. I got good deal for Hawaii and Utah last year.

[acuman]

6 minutes ago, jbourne said:

Asalu ee points cards premium credit cards worthy of their yearly fee anatava Ankul never had a privilege of having premium cards 

They are giving all that fee money back. 300$ for any air travel and lounges free access and no international transaction fee. But, downside is they are with high APRs

[tacobell fan]

17 minutes ago, pamogudu said:

Doordash introduced door pass. Their subscription service in 2018. Monthlyy 10$ . Most of the nearby restaurants nunchi free delivery and service fee konchem discount.

This is BS, they are forcing restaurants for more commissions + indirectly forcing customer to lock to subscription model. It all works as long as a consumer like you are able to afford. Right now, I have these two, chase reserve card + a subscription from a delivery service. I think I want to go back to very normal card without rewards. I use Prime but I still think it's not worth it, i can wait to add more items to cart and eligible for free shipping. Nenu initial Prime subscribe ayyinappudu it's $59 today it;'s double the price and I'm sure by next year they will bump up to cover their costs. I don't blame amazon, they've added ton of content and digital content but I rarely watch anything on Prime. 

You also need to understand how the interchange works. For a card like this Visa and POS companies charge more fee from business owners and then they push end consumer to lucrative rewards (what they think). End of the day the middle layer is greatly benefited by this. Your debt will pile up & you fall prey for this.

[tacobell fan]

8 minutes ago, pamogudu said:

You should checkout Chase rewards portal to book flights,hotel or rental car. I got good deal for Hawaii and Utah last year.

How much you spent to gain those points? 

[pamogudu]

6 minutes ago, tacobell fan said:

How much you spent to gain those points? 

Haha adhi nijame . I eat out most of the time or order on doordash and use CSR for all restaurant and pubs charge. I always payoff  and dont keep any balance so not worried about APR. Annually it works out.

[pamogudu]

11 minutes ago, tacobell fan said:

This is BS, they are forcing restaurants for more commissions + indirectly forcing customer to lock to subscription model. It all works as long as a consumer like you are able to afford. Right now, I have these two, chase reserve card + a subscription from a delivery service. I think I want to go back to very normal card without rewards. I use Prime but I still think it's not worth it, i can wait to add more items to cart and eligible for free shipping. Nenu initial Prime subscribe ayyinappudu it's $59 today it;'s double the price and I'm sure by next year they will bump up to cover their costs. I don't blame amazon, they've added ton of content and digital content but I rarely watch anything on Prime. 

You also need to understand how the interchange works. For a card like this Visa and POS companies charge more fee from business owners and then they push end consumer to lucrative rewards (what they think). End of the day the middle layer is greatly benefited by this. Your debt will pile up & you fall prey for this.

Yes the prices on doordash is jacked by a dollar or two by restaurants to make up for the fee they have to pay.

[tacobell fan]

Just now, pamogudu said:

Haha adhi nijame . I eat out most of the time or order on doordash and use CSR for all restaurant and pubs charge. I always payoff  and dont keep any balance so not worried about APR. Annually it works out.

Couple years it worked for me, but it's just too much.