Chase Has Already Won

Chase Sapphire Reserve or Amex Platinum

Chase is no longer boring.  The bank’s returned with two significant, simultaneous, freshly-premium products (one an update, another an entirely new card) and hefty signup bonuses.  Customers, current and prospective ones, are mainlining content on the refreshed Reserve and spanking-new Business version.  Indeed, the bank has thrown a kitchen sink-full of features and complexity with these two cards.  As I described before the Chase card details officially arrived, I’m intrigued to see how Amex meaningfully responds with their Platinum products.  Regardless, many are naturally asking, “should I opt for the Chase Sapphire Reserve or Amex Platinum?”  Bigger picture, I feel Chase has already beaten Amex this go-round.

Chase Is First

Banks are in the attention business just as much as the credit card business.  The more individuals focus on a given bank, the more likely they’ll hold the bank’s credit cards and steer spending accordingly.  People earn rewards, while the banks make more money.  With this latest refresh, Chase has grabbed the attention of a wide swath of consumers and business owners, oh and uh, a few people who do stuff on the internet for money.  Indeed, DDG and I have talked a good amount about these here at MtM, while others have gone all-in on the Chase content machine.

The bank is diabolically genius here.  Chase innovation seems infrequent compared to Amex.  But when Chase does something big, the bank seems to command more attention, mostly positive.  I’ve had more friends and family contact me about the Chase Sapphire Reserve in the past week than any other card since, well, the launch of the Sapphire Reserve in 2016.

Chase struck first in this latest round of the premium card competition.  Amex, seemingly taken off-guard by the Chase onslaught, vaguely announced they’re revamping the Platinum cards with “major updates” later in the year.  This isn’t a good look.

It’s safe to say that everyone flocking, or at least considering, a Chase Sapphire Reserve card right now won’t stick around for whatever Amex offers in the future.  And that’s even if Amex gives us something worth pursuing, which is far from guaranteed.  Many individuals will opt out because they already hold the Reserve and won’t need another premium card with Amex.  Others will simply be exhausted – they won’t have the time or patience to research another complex product.

Goodwill

Chase has been careful about raising the Sapphire Reserve annual fee.  The card originally came with a $450 fee in 2016.  In 2020, Chase modestly raised it to $550.  In my view, the Reserve has been overdue for a refresh, paired with an annual fee increase.

Meanwhile, the Reserve has historically come with a few primary benefits which subsidized the annual fee, such as the $300 annual travel credit.  In my view, Chase’s lounge offering has improved over time.  Priority Pass was a big hit at first with the Reserve, since it provided access to a few dozen mostly-mediocre restaurants.  While cardholders eventually lost that restaurant option, they’re gaining more superior ones with Sapphire Lounges, what I consider the strongest-performing bank clubs.  While the footprint is limited, it’s steadily, responsibly growing.  I’ll take Chase’s quality over Amex’s quantity any day (more on that later).  The Reserve’s top-performing Pay Yourself Back categories have enabled solid value on everyday redemptions, as well.  We now know this benefit will continue with 1.25 cents per point redemption options.

The Sapphire Reserve has become more convoluted due to last week’s refresh.  It will take more time and effort for cardholders to obtain bigger value out of the card’s spiked $795 annual fee, but I’m definitely up for the challenge.   And from what I’ve recently noticed, cardholders are open to playing more ball with Chase than Amex.  Chase doesn’t have a history of doing them dirty like Amex has.  I’ve noticed many individuals have a deep-seated anger with Amex, unlike anything I’ve seen with Chase.  That’s next.

Grievance

I’m not a fan of calling any card a “coupon book.”  Knee-jerkingly describing a card this way doesn’t capture the nuance of certain benefits.  But the term reached new heights in our points and travel lexicon thanks to Amex’s Platinum cards.  For years, it’s been like death by a thousand cuts with these products – consistently degrading benefits, introduction of questionable ones, and annual fee increases along the way.

The addition of the Walmart+ membership benefit is just wacky, even if it’s valuable for some.  Indeed, many perceive the benefit as a hit on the “prestige” of the Platinum products, or whatever was left of that.  Certain benefits, in the form of statement credits, come with substantial limitations and/or have become increasingly difficult to use.

While I still think big things are possible with Amex, even I’ve opted out of many recently.  Overall, I hear a level of frustration with Amex higher than any other card issuer.  I doubt anything can bring back many of these previous customers.  And if any do return, I’d be surprised if it’s due to this next Amex Platinum benefit.

The Sad State of Centurion Lounges

Years ago, Centurion Lounges set a new standard for what airport clubs could be, at least domestically.  And we probably have Amex to thank for other banks’ investment in airport lounges.  But Centurions aren’t what they once were.  I’m increasingly dissatisfied with most every visit.  Even on quick stops, I leave asking myself, “why bother?”

Amex just can’t seem to solve the overcrowding problem.  Kudos for trying, and maybe another Platinum card annual fee increase will help.  For whatever reason, I observe more traveler misbehavior in Centurion Lounges than any other type, often worse than at the gates.  I know this isn’t necessarily Amex’s fault.  Or, perhaps, this behavior is a reaction to how cardholders feel they’ve been mistreated by the bank – something Tyler Durden might have done.  Regardless, I can’t help associating it with the brand.

But in my view, the real whoppers are the repeated health code violations at Centurion Lounges.  From my perspective, this is the largest net-negative to a card benefit ever.  If I hear about such violations at a restaurant, it’s automatically off my list of options to visit.  How can I reconcile such a blemish as a card benefit?  Plus, lounge access is the primary reason some have historically held a Platinum.  Why should anyone pay for something they would openly reject in any other forum?  I think the current state of said clubs is a reason many should tell their Platinums, “smell you later.”

Chase Sapphire Reserve or Amex Platinum – Conclusion

Many travelers will have valid reasons to keep or pick up the new versions of the Platinum cards later this year.  And a segment will be able to justify holding a Chase Sapphire Reserve and an Amex Platinum (or more).  But overall, I feel Chase has already won this round with the masses.

Every few years, Chase captivates.  Meanwhile, Amex incessantly tweaks with mixed results.  Chase figures the former defeats the latter.  I agree.