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JPMorgan Chase is hiking the annual fee of its popular Sapphire card by 45% | CNN Business

The article from CNN, published on June 17, 2025, titled "Chase Sapphire Reserve: New Price and Enhanced Benefits," delves into the recent changes made to the Chase Sapphire Reserve credit card, a premium travel rewards card. The article provides a comprehensive overview of the new pricing structure, the enhanced benefits, and the potential impact on current and prospective cardholders. Here is an extensive summary of the content:

Introduction to the Chase Sapphire Reserve

The Chase Sapphire Reserve, launched in 2016, quickly became one of the most popular premium travel credit cards due to its lucrative rewards program and extensive travel benefits. The card initially came with a $450 annual fee, which was later increased to $550 in 2021. The recent changes announced in June 2025 have further adjusted the annual fee to $650, reflecting the card's enhanced benefits and the rising costs of maintaining such a robust rewards program.

New Annual Fee and Justification

The new annual fee of $650 represents a significant increase from the previous $550. Chase justifies this increase by pointing to the enhanced benefits and the overall value provided to cardholders. The company emphasizes that the new fee structure aligns with the rising costs of travel and the need to maintain a competitive edge in the premium credit card market. Despite the increase, Chase asserts that the Sapphire Reserve remains a valuable option for frequent travelers and those who maximize the card's rewards and benefits.

Enhanced Benefits Overview

The article details the new and improved benefits that accompany the increased annual fee. These enhancements are designed to provide greater value to cardholders and justify the higher cost. Key enhancements include:

Increased Travel Credits: The annual travel credit has been raised from $300 to $400. This credit can be used to offset travel purchases, including airfare, hotels, and rental cars, making it easier for cardholders to recoup the annual fee.

Expanded Lounge Access: Chase has expanded its Priority Pass Select membership to include access to more airport lounges worldwide. Additionally, cardholders now receive complimentary access to the new Chase Sapphire Lounges, which offer premium amenities and services.

Enhanced Travel Insurance: The card's travel insurance benefits have been upgraded to provide more comprehensive coverage. This includes higher limits for trip cancellation/interruption insurance, trip delay reimbursement, and emergency evacuation services.

New Dining and Entertainment Benefits: Chase has introduced new dining and entertainment benefits, including exclusive access to curated events and experiences. Cardholders can also enjoy a monthly dining credit at select restaurants, further enhancing the card's value proposition.

Increased Points Earning: The earning rates for certain categories have been improved. Cardholders can now earn 5X points on travel purchased through Chase Ultimate Rewards, 3X points on dining, and 2X points on all other travel purchases. These changes are designed to help cardholders accumulate more points for future redemptions.

Impact on Current Cardholders

The article discusses the potential impact of these changes on current Chase Sapphire Reserve cardholders. For those who already pay the annual fee and utilize the card's benefits, the increased travel credit and enhanced benefits may offset the higher cost. However, some cardholders may find the new fee structure less appealing, especially if they do not fully utilize the card's offerings.

Chase has announced a grace period for existing cardholders, allowing them to maintain their current annual fee for one year before transitioning to the new fee structure. This move is intended to ease the transition and provide cardholders with time to assess the value of the enhanced benefits.

Prospective Cardholders and Market Position

For prospective cardholders, the article highlights the Chase Sapphire Reserve's position in the competitive landscape of premium travel credit cards. The card's new benefits and increased annual fee are compared to other leading options, such as the American Express Platinum Card and the Capital One Venture X Card.

The article notes that while the Chase Sapphire Reserve's annual fee is now higher than some competitors, its enhanced benefits and flexible rewards program continue to make it an attractive choice. The increased travel credit, expanded lounge access, and improved earning rates are seen as significant advantages that may appeal to frequent travelers and rewards enthusiasts.

Expert Opinions and Consumer Reactions

The article includes insights from financial experts and consumer reactions to the changes. Experts generally agree that the enhanced benefits justify the increased annual fee for those who travel frequently and maximize the card's offerings. However, they caution that cardholders should carefully evaluate their spending habits and travel plans to determine if the Sapphire Reserve remains the best option for their needs.

Consumer reactions have been mixed, with some praising the new benefits and others expressing concern about the higher cost. Social media and online forums have seen lively discussions about the changes, with many users sharing their experiences and opinions on the card's value proposition.

Conclusion and Recommendations

In conclusion, the article emphasizes that the Chase Sapphire Reserve's new pricing and enhanced benefits reflect the evolving landscape of premium travel credit cards. The increased annual fee is a response to rising costs and the need to maintain a competitive rewards program. For current and prospective cardholders, the key is to assess the value of the enhanced benefits and determine if the card aligns with their travel and spending habits.

The article recommends that cardholders take advantage of the grace period to evaluate the new fee structure and benefits. Those who travel frequently and utilize the card's offerings may find the increased annual fee worthwhile, while others may need to consider alternative options that better suit their needs.

Overall, the Chase Sapphire Reserve remains a top choice for those seeking a premium travel rewards card, with its new benefits and increased annual fee positioning it as a leader in the market. The article encourages readers to stay informed about future changes and to make decisions based on their individual financial situations and travel goals.

Read the Full CNN Article at:
[ https://www.cnn.com/2025/06/17/business/chase-sapphire-reserve-new-price-benefits ]