American Express is increasing the annual fee on its popular American Express® Gold Card from $250 to $325, but is also adding $184 in new statement credit benefits.
New cardholders can enjoy a welcome offer of 60,000 points after spending $6,000 on eligible purchases in the first six months. Additionally, the card offers 20% back in statement credits on restaurant spending worldwide within the first six months (up to $100 back), with this offer ending on Nov. 6, 2024. The card will also feature a limited-edition White Gold design.
However, some may find the new benefits too specific to justify the fee increase in the long term, as they are tied to particular brands. This trend of brand-specific rewards is becoming more common for Amex, leading some to question whether the issuer still provides enough overall value.
The Amex Gold now costs $325 per year and includes Dunkin’ coffee perks
The American Express® Gold Card is known for its rewards on dining and supermarket purchases, with 4X points at restaurants worldwide and U.S. supermarkets. The card also provides up to $120 in dining credits and Uber Cash. The recent fee increase to $325 introduced new benefits:
Up to $84 in annual Dunkin’ credits
Cardholders can now receive up to $7 per month in statement credits for using their Amex Gold at Dunkin’ (enrollment required). This benefit may not be accessible to all cardholders, especially those in states with fewer Dunkin’ locations.
Up to $100 in annual Resy credits
The Amex Gold now offers $50 semi-annually in statement credits for using the card at U.S. Resy restaurants on the Resy app or website.
Updated up to $120 dining credit
Cardholders can get up to $10 in monthly statement credits at eligible restaurants and delivery services, with Five Guys now included in the list of qualifying restaurants (enrollment required).
While the card continues to offer value, cardholders may need to utilize the new credit benefits to offset the fee increase. This trend of brand-specific rewards raises questions about the direction Amex is taking with its card offerings.
Branded credits and higher fees: A growing trend for Amex
The changes to the Amex Gold Card reflect a pattern of increasing fees while introducing brand-specific credits. This approach may limit the appeal of the card to a broader audience and raise concerns about the overall value provided to cardholders.
The annual fee for The Platinum Card® from American Express used to be $550 and included perks such as Priority Pass Select membership, up to $200 statement credit for airline incidental fees, up to $100 hotel experience statement credit, up to $100 statement credit for Global Entry or TSA PreCheck every four years, and up to $200 in Uber Cash statement credit.
In July 2023, the annual fee increased to $695, but the card added new statement credit benefits worth $920. These new perks included up to $189 Clear statement credit annually, up to $200 in annual hotel credits, up to $300 in annual statement credits for Equinox membership, up to $240 in annual statement credits on digital entertainment, and more.
In October 2023, the card added a $300 statement credit for a SoulCycle At-Home bike purchase and a monthly Walmart+ membership statement credit. These changes seemed to target a specific segment of cardholders, focusing on luxury benefits and fitness perks.
Despite the increase in the annual fee and the addition of new benefits, the card’s target audience appeared to shift to those living in Los Angeles or New York City, staying in luxury hotels, using Equinox gyms, reading The Wall Street Journal, and dining at high-end restaurants.
While the card can provide significant value, it may be worth it for individuals who can offset the annual fees and take full advantage of the rewards and benefits. The card’s value is most apparent when the benefits align with the cardholder’s spending habits and lifestyle.
Exploring Travel Cards with Flexible Statement Credit Benefits
After careful consideration, it was time for us to go our separate ways.
I apologize, Amex. It’s not about you, it’s about me. I have certain standards now, including a preference for better flexibility in the statement credit benefits I receive.
Discovering Travel Cards with Versatile Benefits
One great example of flexibility in statement credits is the Chase Sapphire Reserve®. Cardholders can enjoy up to $300 in statement credits for travel purchases every account anniversary year. Chase defines travel broadly, encompassing 18 types of merchants, from airlines to hotels, ferries, highways, and parking garages. That’s what I call flexibility.
This travel card also offers various limited-time partner offers such as complimentary years of Lyft Pink All Access or a DoorDash subscription. While these are nice perks, I don’t consider them as part of the card’s core value.
However, my favorite in terms of flexibility is the Capital One Venture X Rewards Credit Card. With an annual fee of $395, it provides a $300 travel credit for use at Capital One Travel. This credit can be used for airfare, hotel stays, and rental car reservations, along with 10,000 bonus miles each year. The credit easily offsets the annual fee.
Since the launch of the Capital One Venture X, it has become my top choice. The seamless use of the statement credit without any extra effort on my part alleviates my concerns about annual fees. This has become my new standard, and I hope the industry will follow suit rather than following Amex’s model.
Final Thoughts
While the Amex Gold and Platinum cards continue to offer great value, accessing that value may be challenging for a smaller segment of cardholders without changing their spending habits.
It remains to be seen whether other credit card providers will adopt a similar approach, and I remain optimistic that they won’t. Not all travel enthusiasts are looking to fly in private jets, exercise at Equinox, or enjoy Dunkin’ coffee. I, for one, prefer supporting local coffee shops.