Shoppers have many high-end card options, but for how long?

Associated Press

NEW YORK — Shoppers with means who want a lot of high-end rewards on their credit cards have plentyofoptions — atleastrightnow.

Since JPMorgan Chase launched the $450-a-year Chase Sapphire Reserve Card a year ago, joining the market created by the American Express Platinum Card, companies like U.S. Bank and UBS have jumped in with similar cards. Citi’s Prestige card, which gives the unique benefit of a fourth night free at hotels, already existed.

The increased competition could help customers. Banks sometimes waive annual fees or offer additional points for certain types of spending Analysts say the companies’ desire to keep their cards distinctive may meanthey offer more benefits.

Chase’s Sapphire Reserve Card was introduced last August with a 100,000-point sign-up bonus, worth $1,500 using Chase’s rewards program, a $300 annual travel credit, and no foreign transaction fees, among other perks. Even with a huge fee, customers ate it up. Demand was so high that Chase temporarily ran out of the metal alloy used to make it.

Banks are aware that the demographics have changed. Younger consumers have been keen on luxury cards — because, as analysts posit,they are willing to pay the large annual fee for access to experiences and travel that they prize more highly.

Some customers who now have both an AmEx Platinum and Chase Sapphire Reserve are paying a combined $1,000 a year in fees for them. The argument among the passionate is that each provides different benefits. AmEx’s airport lounge access is broader, while Chase offers more liberal ways of accumulating points.

The early adopters of the Chase Sapphire Reserve card will be deciding soon whether to renew and once again pay the $450 annual fee. While the card gets strong reviews from users, it’s not clear whether that will be enough to assuage the sticker shock ofthe annual fee, analysts say.