JPMORGAN Chase is in hot water with its customers for significantly raising the fees on one of its popular credit cards.
As the bank bumps up the annual fee on its Chase Sapphire Reserve, the steep price tag is pushing many customers to cancel their cards and instead turn to a more affordable option.
JPMorgan Chase is the largest banking institution in the country[/caption]
Many JPMorgan Chase customers are furious after the bank raised its annual fee on the Chase Sapphire Reserve credit card[/caption]
JPMorgan Chase, the largest bank in the US, is planning to raise the yearly fee on its popular Sapphire Reserve credit card to $795.
This marks a 45% jump from its current $550 price point, which has been in place since 2020, and the company’s largest price raise for the Sapphire Reserve since its launch in 2016.
To make the credit card worth the extra $245 each year, JPMorgan Chase is reworking its rewards.
The card issuer shared that customers will get over $2,700 in yearly benefits when the updated card rolls out on Monday, which includes most of its previous perks as well as a handful of new ones.
For example, JPMorgan Chase is launching a new redemption program that will double the value of points used for select travel offers.
The bank is also adding a new $500 yearly credit toward its “The Edit” collection of hotels and resorts, as well as a $300 dining credit at restaurants under the Sapphire Reserve Exclusive Tables network.
JPMorgan Chase customers will also be able to enjoy a $300 credit for StubHub or Viagogo purchases as well as complimentary subscriptions to Apple TV+ and Apple Music, worth $250 annually.
An existing $300 travel credit will continue as well.
Those who spend $75,000 or more each year on their Sapphire Reserve cards unlock additional benefits, such as top-tier status at Southwest Airlines and IHG Hotels and Resorts.
As the finance corporation works to gain a leg up in the highly competitive world of premium credit cards, JPMorgan Chase will also introduce a similarly priced version of the Sapphire Reserve card for businesses.
The new Sapphire Reserve card for business clients will have a $795 annual fee and similar perks as the consumer card.
The business card will also feature credits for ZipRecruiter and Google Workspace.
CONSUMER CLAPBACK
When JPMorgan Chase announced its significant price hike to its Sapphire Reserve credit cards, customers were quick to criticize the bank.
“So many good credit cards out there without annual fees,” cried one Facebook user. “Why would you get one with a fee?”
Many JPMorgan Chase customers were upset by the “ridiculous” fee increase, stating that they could not justify paying $795 for the credit card.
“Not renewing my ‘membership fee’ once it’s up!!!” fumed one cardholder, attributing the bank’s move to “greed.”
A number of infuriated Facebook users shared a superior alternative to the Sapphire Reserve card: the Venture X Rewards credit card from Capital One.
The Venture X card, a new card in the premium travel card market, offers similar benefits as the Sapphire Reserve card but with a $395 annual fee – $400 less than JPMorgan Chase’s offering.
Capital One Venture X Rewards Credit Card
The Capital One Venture X Rewards credit card is a new card in the premium travel card market.
While its $395 annual fee is $400 less than that of the Chase Sapphire Reserve credit card, holders of the Venture X Rewards enjoy similar perks.
Some of the benefits of the credit card include:
- $300 annual travel credit for bookings made through Capital One Travel
- Anniversary bonus of 10,000 miles
- No foreign transaction fees
- Access to over a dozen transfer partners and Hertz rental car elite status
- Access to over 100 Plaza Premium lounges, including select Virgin Atlantic Clubhouses, and the new Capital One lounges in the US
- Earn 75,000 bonus miles when you spend $4,000 on purchases in the first three months from account opening, equal to $750 in travel.
Source: NerdWallet
“I’ve used both. Venture X is way better, even more so now,” commented a Capital One customer.
“Raising prices and lowering bonuses and exchange it for specific discounts like DoorDash and Lyft isn’t the way to go.”
“Venture X is better by a country mile,” agreed a second user, as another shared they would be “downgrading and moving the Venture X to the top of the lineup.”
As JPMorgan Chase hikes its fee for its Sapphire Reserve Card, the banking giant is also offering customers some free cash.
For example, Americans can score $300 with no strings attached – see the exact steps to follow before the July 16 deadline.
Teens can also claim a $100 “high school” bonus as long as they meet four simple criteria.
Many JPMorgan Chase customers plan to cancel their Sapphire Reserve credit cards, instead opting for the Venture X Rewards card from Capital One[/caption]
Top 10 bank sign-up bonuses
- E-Trade from Morgan Stanley: Up to $10,000
- Chase Private Client Checking: Up to $3,000
- Flushing Complete Checking: Up to $2,500
- Wells Fargo Premier Checking: Up to $2,500
- Capital One 360 Performance Savings Account: Up to $1,500
- Citi Checking Account: Up to $1,500
- Huntington Business Checking Account: Up to $1,000
- Chase Total Checking and Chase Savings: Up to $900
- Huntington Bank Platinum Perks Checking: Up to $600
- Associated Bank Checking Account: Up to $600
Source: MarketWatch
