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.
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Chase has not won. Chase is just trashing their point credit cards at a slower pace than AMEX. Ridiculously high annual fees with credits relying on breakage for a profit combined with continuous point devaluation with ongoing limited points earning categories has made an all cash back credit card approach the only viable option for customers that do not want to waste time jumping through all the hoops. Folks, we all need to reject signup bonus bribes to subsidize clearly inferior credit card products if there is any hope of ever having a premium credit card worth keeping long term. In the current environment, churning is the only rational approach since keeping a premium credit card today only works for a small subset of credit card users. Sad really since I would have kept the Chase Sapphire Reserve in its original form long term.
At least for me working in and living just outside of NYC – I’ll easily be able to use the stubhub and restaurant credits so while I don’t love the coupon aspect – I at least am getting greater than the AF. I $50-75K of hotel spend a year on room blocks for work so only a slight decrease if using it for cash redemptions but increased benefit if transferring points or getting one of the boost deals.
Even though it would be gravy – hate how they do the Apple benefit with no option to upgrade. Basically a gimmick as most people I know have family plans making the benefit useless.
I disagree with this. I think Cap One, Bilt, or US Bank will be the real winner. People are fed up with these fees. I haven’t heard anything positive from anyone outside the churning community. People with real spend, do not have time for the couponing. I think a third bank is going to come in and scoop up all the unhappy clients.
“I haven’t heard anything positive from anyone outside the churning community.” Are you (stinkin’) kidding me? What blogs are you reading? A fair number of individuals have commented that the card is a win for them. In a comment to an article on another blog, one guy noted that he only needs to capture the $300 general travel credit and the $500 hotel credit (which can be done concurrently) and he’s break even with the annual fee — he needs nothing more. And, the higher earn rate on direct bookings is gravy.
Think about it: $40k in hotel spending that receives an extra 1X (on a direct booking) receives 40k extra UR points. With a 25 percent transfer bonus to Air France, the person has an additional 50k Air France points. I get at least 2.5cpp on my Air France bookings, so we’re talking $1250 of value from just the higher earn rate. Or, if those points go to Emirates, we’re talking greater value. And, if we’re talking not just $40k in hotel spending, we’re talking even greater value. So, let me be the first “real” spender to tell you that the card is a win. And, people with real spend don’t have to try to capture the credits, they’ll just happen in the ordinary course of spending. It’s not rocket science.
Those who do complain are those who don’t spend or are not imaginative enough to see how the card works. And, the ones who complain the loudest are those who wring their hands over claiming enough credits to break even on the annual fee. Because what they’re really after is free lounge access and the ability to load their carry-on bag with lounge food. Lounge Lice.
If the card is not a fit for you, fine. It’s okay. But, don’t speak for others. Don’t say the card doesn’t work for anyone else. Because it does.
By the way, Wikipedia states that there are over 20 million people in the US who are millionaires. And, according to one banking industry source, these people typically spend $100k or more per year on travel. A target-rich environment for all issuers of premium travel credit cards.
Hotel spenders looking for Air France miles should consider other options. The WF Autograph Journey earns 5x hotels, has a $95 annual fee and transfers to Air France flying blue.
Agreed. I have that card as well and it is my weapon of choice *when* I’m not earning 8X on the CSR. And, yes, it feeds Air France. (I do hope Wells adds Emirates and Singapore as transfer partners.) The CSR at 8X is my feeder for Emirates — I burn well over 1 million Emirates points per year. And, to the extent my CSR at 8X exceeds my Emirates need, my UR points will feed Singapore . . . and Air France . . . among others. Optimization baby!
PS — Do note that CSR 4X plus the typical 25 percent transfer bonus does equal 5X at Air France. The 5X with WF will be particularly useful for airlines without transfer bonuses.
I don’t like the CSR Reserve SUB & will hold off for better. Extra points are 2x for me so 50k URs mean a whole lot more than $500. I was aproved for the Biz, however, & consider 200k a big win. My CFU/CIU becomes a .03 card on non-bonus spend now, what’s not to love there?!
I’m switching most of my hotel & airline spend to 4x CSR from AMEX 5x Plat for flt & their co-branded hotel cards since I can redeem up to 2x on the Chase portal. AMEX @ .01 (or usually less) is a bummer. Chase wants spend.
Keep the Wells Fargo Autograph Journey in the back of your mind if you’re ever going to transfer points to airline programs. WF management has said that it intends to expand the list of transfer partners. Higher earn rate on direct hotel bookings, low annual fee, no coupons (other than a $50 airfare credit). Great card. I curious what the Autograph Beyond will look like when ultimately released.
@Mark is right save your money. If you want something Chase or Amex offers with these cards just pay for it at the time you need it. You’re better off. Even chase lounges have waiting lists now. Time is money and time has run out for these”premiere “ cards
There’s an old saying that if your competitors are copying you then they’re already behind.
Chase seems to be copying the profitable model of the couponified Amex Platinum.
Maybe the Amex model is the real winner here.
And, if the Amex Platinum update copies the earnings structure and benefits that Chase has just rolled out?
I would agree. I believe it’s now a twin of AmX. I sent think it was too couponish until now. I won’t keep both AmX Platinum and CSR. I’ll get the bonus on CSR even it’s higher than 100k. I don’t believe 100k is good enough. I’ll apply fur the work card bc I use half of the benefits already so with the $300 travel credit I can justify the fee for the work card. The 200k bonus is worth it for me. I’m going to have that kind of work spend in the next 5 months. The personal I’ll keep this year since I’m grandfathered into the old price until next year. I just don’t see the benefits really adding up. I really did like the monthly credits. Really they get all the fee up front why can’t they give us the benefits all at once – maybe semi annually. Monthly is discouraging. CSR in now a coupon card. It’s now a copy cat. Hmm wonder if there lounges will suffer – people will
Jump ship from AmX which could help AmX retain the high quality people it user to. AmX customer service is way better than CSR.
I’d agree with you that Chase is doing well by creating a big buzz around the new cards.
I disagree with you that labeling a bunch a exacting and – to me – frequently worthless benefits as a coupon book is a misnomer. I got approved today for the Business CSR. I applied because the signup bonus is compelling for me, not because the extremely lackluster benefits enticed me. I don’t use Lyft or Indeed or food delivery services to bring me once-warm food. Having read some comparisons of the $250 hotel benefit it’s very often no bargain. This is a supposed travel card that forgets to offer a spending bonus for food, which is a pretty important category when traveling. I already have a bunch of cards to renew my Global Entry with while getting a rebate for the fee. The lounge access, while limited by the number of lounges that I suspect are about to get vastly busier, actually is of interest to me.
Slice it how you like, I’m just not seeing much value here although I’d really prefer to be wrong on this one. It’s happened before. Until then I’ll try to wrangle what value I can from the card and see how that works out. Maybe I’ll be pleasantly surprised and end up becoming a big fan of the card.
While the zero-net-cost-lounge-access types are screaming bloody murder, seasoned travelers who actually use a premium travel card have offered positive comments about the CSR refresh.
Benjy, your analysis seems spot on. The CSR refresh is so big, one would expect Amex to match it at best. And, if all Amex is only going to match it, why wait? The CSR is here now. And, does a person need a second premium travel card? Amex has been caught flat-footed — it’s a day late and a dollar short. Amex has indeed lost.
As for lounge access, the Amex Platinum offers no access that I don’t already have. Amex scores no points here. No pun intended.
I had an Amex Platinum card from the early 90s when it had all sorts of real perks. I used the 2 for 1 First Class quite a few times, got great and truly “free” amenities at FHR hotels, got hard reservations, and it was a no-brainer. Slowly it devolved so that these benefits were totally illusory, while the price went up and up, and I kept it only out of inertia. Then, in April 2020 with the world shut down I called to get my Annual Fee waived and the agent told me too bad, pay it. I cancelled it and never thought about it again and pat myself on the back for refusing to allow myself to be taken advantage of any longer and I’ve saved roughly $3K that I can spend on what I want, and not some stupid thing that I have to buy to rationalize by stupid annual fee. Chase strikes me as a poor value in the same vein with the same picking up pennies in front of a steam roller vibe – there is still nothing like the 2 for 1 First Class or a real concierge service like Amex had until 2015 or so and it’s larded with things I don’t need or want – but I you are correct that I don’t despise Chase the same way I do Amex for rubbing my face in it. With millions of miles in my accounts that I haven’t been able to redeem, I’ve come to think of all annual fees as suspect – paying cash regularly every year for a benefit that I’ll only be able to use well into the future, if at all.
Not trying to overstate the matter but it seems that Amex has felt that they don’t have to work for their cardholders’ business.
@Mak, thanks for saying all that. It’s exactly what has been churning in my head for several years now re: Amex Plat (I have the Biz), and seeing that in 5 years you saved $3k from the AF, I’m smacking myself. All I really care about anymore is the Marriott Gold status and the Dell $200 credits (which are now $150). I keep hoping Amex will up their game to make it great again, but I might as well spend the $3k on a great hotel stay instead.