Core Insights - Credit card companies are increasing annual fees significantly, with JPMorgan Chase raising its Sapphire Reserve card fee by 45% to $795, while American Express increased its Platinum card fee from $695 to $895 [6][7]. Credit Card Industry Trends - Credit card companies are focusing on high-net-worth individuals, as they account for nearly half (49%) of consumer spending in Q2 2024 [2][3]. - The total swipe fees charged by card networks and banks reached $187 billion in 2024, indicating a lucrative revenue stream for credit card companies [4]. Consumer Behavior - Approximately 20% of American cardholders own premium cards with annual fees exceeding $100, and these cardholders are highly engaged, with over half using their premium card as their primary payment method [5]. - High annual fees may be justified for frequent travelers who can leverage perks such as airport lounge access and travel upgrades [10]. Competitive Landscape - As one card issuer enhances its offerings, competitors tend to follow suit to maintain market share, leading to a trend of increasing benefits alongside rising fees [6][7]. - American Express has added benefits to its Platinum card, now offering $3,500 in total benefits, including a $600 hotel credit and a $400 dining credit [7]. Consumer Decision-Making - Consumers are encouraged to evaluate the actual value of perks against the annual fee, considering whether they will utilize the benefits offered [11][13]. - Options for consumers include negotiating lower fees or interest rates with credit card companies, with a significant percentage of cardholders successfully obtaining reductions [15].