The American Express Platinum card’s annual fee is skyrocketing from $695 to $895, causing concern and self-reflection among users. Despite the hefty fee, the card is popular among Millennials and Gen Z, who make up 60% of its new customer base globally. Amex is justifying the fee increase with new benefits worth up to $3,500, including credits with Resy, Lululemon, and Uber One, among others. The card is transitioning from a travel card to a lifestyle card, targeting a luxury audience.

With the rise in annual fees, Amex risks losing customers, but most are willing to pay for the benefits. The company boasts a 98% retention rate for the Platinum card. Amex is banking on the enthusiastic customer base, offering rewards and credits that merchants help subsidize. The higher fee attracts high-income consumers, reshaping spending habits around Amex’s merchant partners. Some customers may opt for a more basic cash-back card over the Platinum card.

Despite the fee increase, many cardholders love their Amex Platinum cards, citing benefits like airport lounges and exclusive perks. While some are eager to keep the card, others are evaluating if the rewards outweigh the cost. Amex is investing in expanding lounges and launching new concepts to enhance the cardholder experience. Users are advised to run the numbers and weigh the cost of complexity before deciding to keep the card. Ultimately, the Platinum card is about working the system and maximizing benefits.

Read more at Yahoo Finance: I’ve got a real love-hate relationship with my Amex Platinum card