Premium credit card costs rise—here’s what’s changing

Singapore’s ultra-premium credit card market is shifting again. In recent months, several major issuers have revised their fee structures—quietly, in some cases, and in others with glossy announcements about “enhanced member privileges.” What this really means: the most exclusive credit cards are about to get even more expensive.

American Express Singapore now lists its Platinum Charge Card annual fee at S$1,744, up from S$1,712 just a year ago. DBS Insignia’s S$3,210 fee hasn’t moved yet, but insiders suggest a service revamp may be coming. HSBC Jade clients are reporting more frequent spending tier reviews to maintain complimentary privileges, while Citi’s Prestige card quietly reduced the value of its fourth-night-free hotel benefit, despite keeping fees flat.

This isn’t just a pricing tweak. It signals a broader retrenchment: premium cards are no longer trying to appeal to aspirational users—they’re tightening access, pushing up prices, and segmenting perks to justify the cost for only the highest-spending clients.

These fee hikes don’t touch the average salary earner—but they absolutely matter for a growing segment of professionals, business owners, and expats who rely on credit cards for structured spending and soft-margin benefits like airport lounge access, travel protection, and lifestyle concierge services. The typical entry requirement for these cards already filters out the mass market: most require a minimum annual income of S$120,000 or more, and some—like the J.P. Morgan Reserve—are by invitation only and reportedly require S$500,000 in assets under management. But for those who do qualify, rising annual fees are no longer being matched by equivalent increases in tangible benefit value.

Consider this: a S$1,600 fee used to offer unlimited airport lounge visits for two guests, comprehensive travel insurance, hotel elite status, and regular cashback offers. Today, some of those perks require opt-ins, manual claims, or have been trimmed to once-a-year benefits. For users who don’t track every perk or max out usage, the fee hike translates to real value erosion.

There are three main drivers:

1. Perks inflation – Card issuers are bundling new lifestyle credits (for food delivery, gym memberships, or streaming services) into their annual fee pitch, but these are often tied to monthly activation limits or usage conditions. The total headline value looks higher—but real redemption may be lower for users with fixed routines or limited travel needs.
2. Cost-to-serve reality – Premium cards often come with higher customer service standards, concierge teams, and partner payouts for things like hotel status or flight upgrades. As those costs rise globally, especially post-pandemic, banks are rebalancing by shifting more cost to the user.
3. Portfolio segmentation – Issuers are increasingly splitting their premium tiers. A card once aimed at affluent professionals now bifurcates: one version for ultra-high-net-worth (UHNWI) clients with more bespoke services, and another “affordable premium” option that looks exclusive but offers diluted benefits.

This segmentation often creates confusion for users who think they’re getting the same perks as before—but are in fact receiving a restructured, less generous bundle under a new tier name or spending category.

In the US, the American Express Platinum card hit US$695 per year in 2023, with benefits including US$200 in airline credits, hotel loyalty status, and access to the Centurion Lounge network. But American consumers have been increasingly critical of “benefit overload”—where multiple perks sound attractive but are hard to use consistently.

Singapore’s market response has been different. Many high earners treat premium cards as financial infrastructure—tools to streamline business travel, bill payment, and emergency coverage. But even in this context, fee elasticity is being tested. Anecdotal reports suggest some cardholders are letting cards lapse rather than renewing at the higher rate.

In the UAE, where cards like the Emirates NBD Visa Infinite or ADCB Etihad Guest Black are marketed to professionals with significant regional travel patterns, the approach has been more nuanced. Rather than raising annual fees directly, issuers are adjusting tier access by tying it to salary transfers or AUM thresholds. This bundling masks fee increases behind relationship privileges, but the logic remains the same: fewer benefits, more conditions.

While fee increases are headline-grabbing, the more critical change lies in benefit design. Key reductions include:

• Travel insurance coverage: Some cards have quietly lowered their caps for lost baggage, trip cancellation, and emergency evacuation. Others now require the full airfare to be charged to the card for insurance to apply.
• Lounge access restrictions: Guest passes are being limited. Priority Pass access, previously unlimited for cardholders and a guest, may now be capped at 10 visits or exclude certain lounges.
• Rewards program devaluation: Point earning remains stable—but redemption rates for flights and upgrades have worsened, especially on non-flagship airline partners.
• Concierge services: Once a flagship feature, concierge access is now often outsourced to third-party providers with slower response times and lower success rates.

These aren’t necessarily listed in the marketing material—but they show up during usage. And for users who treat these perks as part of their travel or protection strategy, they represent meaningful functional downgrades.

If your exclusive credit card is up for renewal this year, take the time to audit its current value based on your real usage—not just the issuer’s benefit brochure.

Here’s what to consider:

• Annual redemption value: Do you actually use enough perks (e.g., hotel discounts, airport lounges, insurance claims) to offset the new annual fee?
• Travel patterns: If you travel less frequently now than pre-COVID, the embedded travel perks may no longer justify the premium.
• Overlap with other cards: Are you holding multiple cards with similar benefits? You may be able to downgrade one or consolidate.
• Alternative structures: Some digital-first travel cards (like YouTrip Metal or Instarem Amaze) now offer partial lounge access and cashback with no annual fee. They lack prestige, but may offer better dollar-for-dollar utility.

Remember: credit cards are not insurance substitutes or investment tools. Their value lies in convenience and benefit layering—but only if those layers align with your lifestyle.

In Singapore, high earners often treat exclusive credit cards as identity markers, relationship anchors with banks, or even informal safety nets during business trips. But as annual fees rise and benefits become more conditional, it’s worth revisiting this logic.

• For business owners: Consider whether the concierge and lounge perks meaningfully enhance your travel cadence or client service flow—or whether they’ve become legacy features you no longer use.
• For mid-career professionals: If you're not maxing out points or using the insurance coverage, a downgrade may make sense—especially if your employer already covers most travel.
• For expats: Check how your region’s card benefits stack up. In some cases, a UK-issued or UAE-issued premium card may offer better FX or hotel perks than a Singapore-issued equivalent.

The goal is not to avoid fees entirely, but to ensure that each dollar of annual cost returns practical, recurring benefit. A S$1,600 card might make sense if it anchors S$3,000 worth of insurance, flight access, and hotel savings. But if you’re only redeeming two lounge visits a year and missing activation windows for lifestyle perks, the math likely doesn’t hold.

This latest round of exclusive credit card fee hikes isn’t just a pricing move—it’s a strategic filter. Issuers are using pricing to identify and retain only their most profitable, active, and benefit-engaged customers. That means less tolerance for dormant cards, more enforcement of usage conditions, and a sharper line between “premium-looking” and “premium-performing” cardholders.

If you’re renewing a top-tier card this year, treat the process like any financial product review: check the fine print, map usage to cost, and decide whether the perks support your actual life—or just the version of it the brochure assumes. Because as always, the card may be optional—but its tradeoffs aren’t.