American Express is hiking the annual fee on one of its most popular cards, the American Express® Gold Card. The $75 increase — from $250 to $325 — comes with $184 in new statement credit benefits.
New cardholders also get a limited-time welcome offer of 60,000 points after spending $6,000 on eligible purchases on your new card in the first six months. Plus, the card offers 20% back on restaurant spending worldwide within the first six months of card membership (up to $100 back). This offer ends on Nov. 6, 2024. And last but not the least, the card will offer a new White Gold design — limited-edition, of course.
Unfortunately, all the new benefits might be too niche for many people to justify the fee increase in the long run. They’re tied to specific brands, meaning you’re either spending where the card is telling you or missing out on that extra value. This is becoming a bit of a trend for Amex. In fact, the issuer’s signature products are beginning to resemble card-shaped coupon books.
Let’s take a closer look at how Amex has been changing its cards and what it means for cardholders. Does the issuer still provide enough value or is it time to look for it elsewhere?
The Amex Gold costs $325 per year now — but it’ll pay for your Dunkin’ coffee
The American Express® Gold Card has long been known as an ultimate foodie card. With 4X points at restaurants worldwide (up to $50,000 in purchases per year) and U.S. supermarkets (up to $25,000 in purchases per year), it’s highly rewarding if you spend a lot on food. Plus, it comes with up to $120 in dining credits at eligible restaurants and delivery services, as well as up to $120 in Uber Cash toward Uber Eats or Uber Rides. Both credits are paid out in $10 monthly increments.
Previously, the Amex Gold charged a $250 annual fee. On July 25, 2024, the fee increased to $325. To sweeten the deal (almost literally), Amex introduced the new and improved benefits:
Up to $84 in annual Dunkin’ credits
Now, cardholders can get up to $7 per month in statement credits after using their Amex Gold at Dunkin’. This benefit is as brand-centered as they come. To take advantage of it, you have a choice of either a) miss out on $84 worth of value or b) get something at Dunkin’ at least once a month — if you even get this option at all. Dunkin’ has over 9,000 locations in 44 states with most of their shops located on the East Coast. That means cardholders in at least six states aren’t likely to use this benefit at all.
For one, I’m completely Dunkin’-less in Seattle. There isn’t a single location in the entire state of Washington. There are none in the neighboring states of Oregon and Idaho. I’m going to take it upon myself to feel excluded on behalf of the Pacific Northwest. Folks here are more Starbucks and Krispy Kreme people — where are the credits for them?
Up to $100 in annual Resy credits
Resy is an online restaurant reservation platform. The Amex Gold now gives $50 semi-annually for using the card at U.S. restaurants on the Resy app or Resy.com after enrollment.
Not every restaurant is on Resy — far from it. I’ve used the service a couple of times here in Seattle, and it currently lists over 60 venues, which isn’t much for such a big city. Of course, other cities have more to choose from. For example, Resy in Los Angeles lists over 400 restaurants. That’s more impressive but still relatively few. According to the data from the Los Angeles Office of Finance, there are over 7,700 registered active restaurant listings in the city. Other statistics I saw but couldn’t verify suggest even higher numbers. Either way, you’ll qualify for Resy credits in a small percentage of establishments.
It might very well happen that you’ll be checking Resy to pick a restaurant only to earn the credit twice a year. Sure, it may be a good way to try new foods. But you’ll also be making a choice based solely on your credit card terms.
Updated $120 dining credit
Amex cardholders get up to $10 in monthly statement credits at eligible restaurants and delivery services. This benefit isn’t new, but the issuer has now added Five Guys to the list of qualifying restaurants. With that, eligible restaurants and websites now include:
- Grubhub (including Seamless)
- Five Guys
- The Cheesecake Factory
- Goldbelly
- Wine.com
In case you’re a big fan of Five Guys, this is, of course, fantastic news for you. If not, this benefit is flexible enough as it is, thanks to Grubhub being included. Those frequently ordering food delivery or take-out can easily take advantage of it simply using Grubhub once a month.
The same goes for the Uber Cash credits benefit. Food delivery lovers should have no issues using it with all the restaurant options available on the app. All in all, the Amex Gold was flexible and offered plenty of value before the changes. Plus, just the dining and Uber Cash credits alone were enough to offset $240 out of the $250 annual fee. Now, however, you’ll need to use at least one of the new credit benefits to achieve the same result. So, you’re either drinking Dunkin’ or letting Resy influence your dining choices — you decide.
This isn’t the first time Amex has turned to such apparent brandification of its benefits. Is it turning into a trend?
Justifying higher fees with branded credits is becoming a pattern
The Amex Gold news has given me a sense of déjà vu. The Platinum Card® from American Express used to cost $550 in annual fees and offered, among other perks:
Then, in July 2021, the annual fee increased to $695. The card also added new statement credit benefits worth $920 — an impressive value if you overlook some of the hoops you’d have to jump through to realize it.
At the first glance, that might sound like a fair deal, but the list of new perks left me with mixed feelings.
Let’s take a trip down the memory lane. In July 2021, the card added:
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The Amex Platinum had already offered statement credits to cover Global Entry or TSA PreCheck application fees. But I suppose having as many ways as possible to get through airport lines quickly is a good thing.
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This applies to prepaid bookings with American Express Travel at Fine Hotels + Resorts or The Hotel Collection properties (read: mostly high-end hotels).
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The benefit is doled out in $25 monthly credits. Equinox membership rates currently range from $222 to $405 — per month. This renders your Amex Platinum savings rather minimal even if you can take advantage of them.
Equinox only has 101 gyms in the U.S. with 41 of them being in New York and 32 in California. Those without a club in their city can use Equinox+, an on-demand fitness app, for $40 per month. At least in this case, $25 per month from Amex appears significant.
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Again, cardholders can receive up to $20 every month. Eligible subscriptions include Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peacock and The Wall Street Journal.
This is actually a solid deal for a cardholder who’d pay for one or more of these with or without the card. Remember, if you’re adding an expense you wouldn’t otherwise have, you’re not really saving.
Along with the credits, the issuer also added a bunch of perks to highlight the card’s luxury status. Cardhoders got access to the Premium Private Jet Program, Global Dining Access by Resy and a subscription to a lifestyle destination resource Departures (no longer available).
… and more statement credits
In October 2021, the Amex Platinum doubled down on fitness benefits and threw in a $300 statement credit for a SoulCycle At-Home bike purchase to go with that Equinox+ subscription. On top of that, the issuer added… a monthly Walmart+ membership credit ($12.95 per month plus applicable taxes). This gave me pause. I’m sure people in every tax bracket shop at Walmart, but the perk seemed out of place among the card’s luxury benefits.
“The Amex Platinum is having an identity crisis,” I remember telling my colleagues.
Still, it was clear to me the Amex Platinum redefined its target audience. Before the changes, the card’s perks were much more flexible and allowed more types of cardholders to get value out of it. Sure, it had fewer statement credit benefits, but those it did have were versatile.
Now, the Amex Platinum seems to be targeting a very specific segment of cardholders: People living in Los Angeles or New York City, staying at posh hotels wherever they go (possibly in a private jet) and hitting an Equinox gym while at it. People reading The Wall Street Journal with their morning coffee and booking reservations at the hottest restaurants on the regular. People who probably won’t clutch at their heart over a $695 annual fee. They still shop at Walmart, though.
A credit card as a luxury coupon book: Is it worth it?
“But, Ana,” one might argue, “these cards can still offer incredible value!” And I can’t argue with that. If you look purely at the numbers, the Amex Platinum can provide around $1,700 in recurring annual value, and the Amex Gold — more than $420. This isn’t mere pocket change by any account.
Either or both of the cards might be a brilliant addition to your wallet. This can be true in two scenarios:
- When you’re looking at the list of benefits, it feels as though someone has been watching your spending and created a card with statement credits perfect just for you.
- When you spend enough to offset the annual fees and still earn plenty of rewards even without using all the statement credit benefits.
This applies to any card that offers benefits connected to brands. For instance, I used to love my Amex Gold because I ordered food delivery multiple times a month. I ate my way through those Grubhub and Uber Cash credits… and then I stopped. My habits changed along with my budget. I wasn’t about to fall into my old ways just to keep a credit card. And even at its most versatile, the Amex Gold didn’t offer dining (or any other) credits without brand names attached to them. So we had to part ways.
I’m sorry, Amex. It’s not you, it’s me. I have standards — which now include better flexibility of the statement credit benefits I receive.
Travel cards with flexible statement credit benefits
Perhaps the best example of such flexibility is the travel credit on the Chase Sapphire Reserve®. Cardholders receive up to $300 in statement credits on travel purchases each account anniversary year. Chase’s definition of travel is amazingly broad and includes 18 types of merchants, ranging from airlines and hotels to ferries, highways and parking garages. Now that’s flexible.
The travel card also provides a bunch of limited-time partner offers — the branded kind — like two complimentary years of Lyft Pink All Access when activated by Dec. 31, 2024 (a value of $199 per year) or a DoorDash subscription (a value of $120) when you activate by Dec. 31, 2024. I see these as nice-to-haves that you shouldn’t count toward the card’s ongoing value.
My favorite example of flexibility, however, is the Capital One Venture X Rewards Credit Card. At $395 per year in annual fees, it provides a $300 travel credit you can spend at Capital One Travel. You can book things like airfare, hotel stays and rental car reservations. Together with the 10,000 bonus miles (worth $100 in travel) cardholders receive each year, the annual credit more than offsets the $395 fee.
Ever since the Capital One Venture X hit the market, it has become my personal favorite. It doesn’t require any extra effort from me to use the statement credit — which allows me not to worry about annual fees. This is my standard now. I hope the industry will adopt that standard too rather than follow Amex’s example.
The bottom line
The Amex Gold and Platinum cards still offer fantastic value. The problem is, only a smaller segment of cardholders can easily access it, especially without changing their spending habits.
I’m curious to see if the rest of the credit card market will follow suit — and hopeful it won’t. After all, not all of us travel lovers are meant to fly in private jets, work out at Equinox… or drink Dunkin’ coffee. I very much prefer local coffee shops myself.
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