JP Morgan Raises Sapphire Reserve Fee to $795 with New Perks

Credit Card Industry Trends - JP Morgan disrupted the credit card industry a decade ago with Sapphire Reserve [1] - JP Morgan is pushing further upstream with a new credit card [2] - Competitor cards like Capital One carry a $395 fee [7] New Credit Card Details - The new credit card has a $795 annual fee, 45% higher than before [2] - The company hopes to attract customers with about $2,700 in annual benefits [2] - Benefits include fine dining and resort stays, Apple TV and Apple Music subscriptions [3] - Credits may only be applicable at selected restaurants or resorts [4][6][7] - A $500 hotel credit requires a two-night stay at a hotel within their fine resorts network [6] - A $300 dining credit is only valid at restaurants selected by JP Morgan Chase [7] Potential Risks and Customer Behavior - Customers may downgrade to lower-fee cards or switch to competitors [7] - Customers are sophisticated and may maximize credit card benefits using spreadsheets [5] - The bank previously incurred a $300 million charge due to customers gaming the system [4]