Credit Card News: AMEX Increases Authorized User Fees for the AMEX Platinum Card
Premium travel credit cards are becoming more expensive, especially for the American Express (AMEX) Platinum card. It is AMEX’s signature luxury travel credit card, and in 2017, its annual fee went up from $450 to $550, and in 2021, it went up to $695 from $550. One cost-effective method of enjoying the benefits of the AMEX Platinum card has been to become an authorized user. However, AMEX has recently announced an increase in the fees for authorized users. Let's delve into the concept of an authorized user, exploring its benefits and potential reasons behind AMEX's implementation. Additionally, we'll explore alternative options that might offer greater advantages than the AMEX Platinum card.
Recently, AMEX has implemented a substantial increase in the authorized user fees for the AMEX Platinum card.
What Is an Authorized User?
An authorized user on a credit card is someone who is given permission by the primary cardholder to use the credit card account. The authorized user is not responsible for making payments but can make purchases with the card and receive benefits such as cashback rewards or travel points. Essentially, the authorized user is an extension of the primary cardholder. Thus, it's important for primary cardholders to carefully consider who they add as an authorized user, as they will be responsible for any charges made by that person. However, adding an authorized user can be a valuable option for sharing credit card benefits with family or trusted friends.
Including authorized users on your credit card can enhance the potential for earning rewards. However, it is important to only add individuals whom you trust, such as your spouse. Photo by Clay Banks on Unsplash.
Benefits of Adding Authorized Users
Adding an authorized user to your credit card is a great way to extend the benefits that come with that card. Travel credit cards are particularly useful for adding authorized users, as an authorized user can provide additional rewards and travel benefits, without paying the full annual fee of a premium travel credit card. Some of these benefits may include elevated car rental or hotel status, access to airport lounges, and bonus points or miles for purchases made by the authorized user. This can be especially helpful when traveling with family members or friends. Additionally, adding an authorized user can help improve their credit score if they are responsible for making payments on time and maintaining a low balance.
What Perks Do AMEX Platinum Authorized Users Receive?
The AMEX Platinum card comes with a plethora of benefits and perks that help cardholders justify its $695 annual fee. They include:
$200 Fine Hotels & Resorts Credit
$100 Saks Fifth Avenue credit
$200 airline incidental credit
$200 Uber credit
Delta Sky Club access when flying Delta
Hilton Honors Gold status & Marriott Bonvoy Gold Elite status
Reimbursed Global Entry or TSA PreCheck application fees
$240 digital entertainment credit
$300 Equinox credit
$179 CLEAR credit
$155 Walmart+ credit
Centurion Lounge Access & Priority Pass Membership
Elevated rental car status - Avis Preferred Plus, Hertz Gold Plus Rewards, and National Emerald Club Executive membership
During my recent visit to The THIEF Hotel in Oslo, Norway, I had the pleasure of utilizing the $200 annual FHR credit on my AMEX Platinum card, and I was upgraded to an elegant suite and treated to a complimentary breakfast.
Among these benefits, authorized users of the AMEX Platinum card receive the following benefits:
Delta Sky Club access when flying Delta
Hilton Honors Gold status & Marriott Bonvoy Gold Elite status
Reimbursed Global Entry or TSA PreCheck application fees
Centurion Lounge Access & Priority Pass Membership
Elevated rental car status - Avis Preferred Plus, Hertz Gold Plus Rewards, and National Emerald Club Executive membership
The benefits primarily encompass access to airport lounges, elevated hotel elite statuses, and various travel perks. Now, the real question lies in assessing the value of these benefits and justifying the associated authorized user fee.
Fees for Adding Authorized Users to the AMEX Platinum Card
Traditionally, it would cost a fixed fee of $175 to add up to three authorized users to the AMEX Platinum card. Starting with the fourth authorized user, an additional authorized member would cost $175 per person. For just $58.33 per person, a family of four can enjoy upgraded travel perks for three authorized users. Unfortunately, the glory days have come to an end. AMEX made an announcement stating that they will now impose a charge of $195 per authorized user. As a result, the three individuals who were previously paying a total of $175 for all three now find themselves having to fork over $195 each, ultimately driving the total expense up to $585. Once there are three authorized users, any additional members will still be charged $175 to become authorized users. The effective date of the change hasn’t been announced, but this steep hike in price will certainly affect many current and future cardholders.
Potential Rationale Behind the Price Hike
In my perspective, the primary factor that has led to the rise in authorized user fees is the overcrowding issue at airport lounges. The Centurion Lounges and Delta Sky Clubs have become overwhelmingly crowded, causing AMEX Platinum cardholders to anticipate being placed on a waitlist upon arrival at the lounge. To address the issue, AMEX and Delta made adjustments to their lounge programs. Previously, primary card members of the AMEX Platinum card could bring in two guests to Centurion Lounges at no additional cost. However, the new policy now requires cardholders to pay a fee of $50 per guest. Delta has implemented a revised access policy to alleviate overcrowding, along with a membership fee adjustment. As a result, Delta Sky Club membership is now exclusively available to SkyMiles Medallion members. However, regardless of these changes, the overall situation hasn’t changed much. It will be interesting to witness the impact of the revised authorized user policy on alleviating overcrowding at Centurion Lounges.
Delta Airlines has recently made changes to its Delta Sky Club lounges in order to manage and limit the occupancy rate. Photo by Delta.
Alternatives Premium Travel Credit Cards to Consider
The increased $195 fee per authorized user will be difficult to swallow for most consumers. If you are still looking for a premium travel credit card to earn versatile reward points that can be transferred to airline and hotel partners, I recommend considering either the Chase Sapphire Reserve card or the Capital One Venture X card. To include authorized users on the Chase Sapphire Reserve card, a fee of $75 per person applies. On the other hand, for the Capital One Venture X card, you have the freedom to add up to four authorized users without incurring any additional charges.
The Capital One Venture X card is a great alternative to the AMEX Platinum card, and you can add up to four authorized users for free. Apply HERE!
The lounge networks for these two cards are not as strong as the AMEX Platinum card. However, both Chase and Capital One have recently introduced their own versions of AMEX's Centurion Lounge—Sapphire Lounge by The Club for Chase and Capital One Lounge for Capital One. Recently, both Chase and Capital One have unveiled their own renditions of AMEX's Centurion Lounge, Chase offering Sapphire Lounge by The Club and Capital One expanding Capital One Lounge. These additions intensified the competition, increasing options for travelers seeking a premium lounge experience.
Summary
In summary, authorized users can be a valuable addition to your credit card account, especially if used responsibly. However, it's important to understand the responsibilities that come with adding someone else to your account. Recently, AMEX raised the authorized user fee for the AMEX Platinum card. The fee has increased from a flat fee of $175 for up to three people to $195 per additional authorized user. AMEX Platinum cardholders will now need to carefully consider the pros and cons of adding authorized users to their accounts since the recent substantial increase in price may make it less justifiable than before.
