American Express will double the annual fee on its Centurion card, colloquially called the “Black” card, while adding additional benefits. Is it worthwhile?
While the Centurion card is considered by many to be a status symbol more than anything else, I recently outlined why I am considering the card. Back then (about a week ago), the annual fee was $2,500/year (plus $7,500 initiation fee). Today, American Express announced the annual fee is doubling to $5,000/year.
> Read More: Why I’m Seriously Considering An American Express Centurion (Black) Card
Cardmembers received the following email this morning:
New benefits will include:
- Complimentary CLEAR membership (for the cardmember + family members)
- $1,000 Saks Fifth Avenue credit per year
- Equinox membership
- The Private Suite at LAX membership (per use payment still required)
But the $200 annual airline credit is disappearing.
My Thoughts
These new benefits mean nothing to me and surely do not justify the doubling of the annual fee. That said, this recent annual fee increase does not change my calculus IF the card provides additional protection in the case billing inquiries. There’s a lot of crooked people in the wholesale business (another reason I don’t need the Saks Fifth Avenue credit, since I don’t have to buy any clothing at retail price) and I need American Express to be my advocate when fraud is committed by unscrupulous vendors. This discussion here is quite interesting on this topic.
CONCLUSION
I’d say the value proposition of this card dropped for most people today. Then again, for the demographic AMEX is targeting with this card, the extra $2,500/year probably doesn’t make a huge difference.
(H/T: Jason Around the World)
Indeed. If you’re a typical good standing constituent of the helix firm, Koch brothers, or Buffett’s inner circle, the $2,500 additional simply goes unnoticed.
“Then again, for the demographic AMEX is targeting with this card, the extra $2,500/year probably doesn’t make a huge difference.”
I’d say a Centurion Card holder complaining about the increase in the annual fee would be the rough equivalent of the same person complaining about the cost of gas to fill up their gas-guzzling Bentley…
I’m already broke and can not afford another $2500 annually. My food stamps already got cut down by $100 a month and my baby momma kicked me out of the house. I gotta keep this black card tho so I can stay fly til I die. I guess I’m gonna have to step my hustle game up by 2 times to make dis money for my black card.
My equinox subscription is $178 a month and certainly a $1000 at sacks is a $1000 at sacks. If u live in SoCal or Bay Area or major city, the $2500 extra is not all bad news.
Isn’t there an equinox right of the 210 in Glendale? These are nice gyms.
I don’t think it is that big of a deal. I only use my Centurion card for business investments anyway. So the extra $2,500 won’t matter too much.
If you pay them to carry their card and make them money on every transaction…you are an idiot.
You are right as Rain!
Titanium card? Guess they’re taking a page out of Marriott’s books.
It has been Titanium for years.
The target demographic of egocentric professional athletes and Hollywood elites will be unshaken by the increased AF.
“for the demographic AMEX is targeting with this card, the extra $2,500/year probably doesn’t make a huge difference.”
Maybe they WANT to winnow their ranks and rid them.of the penny pinchers?
Just a thought.
Except you have to charge enormous amounts of spend with Amex just to receive an invitation to apply for a Black Card. Thus, I’d imagine the number of cheapskates to get rid of is a very, very small number.
Being a President & Owner of a small airline, we see these Centurion Cards fairly frequently. On the Private Aircraft side of the airport, many aircraft owners and people who lease aircraft, use the Centurion Card (Amex Black Card) for fueling their aircraft. A simple tank of fuel can cost $25,000 to $100,000 per fill-up. When a customer presented the Centurion Card to me the first time, I had never seen one before, so I thought it was a fake. I called Amex to verify the card and customer, my Amex representative said whatever the customer wants, we will honor the charge. If the customer wants the plane, give it to him, we will honor the charge. My point here, someone flying a 60 million dollar jet does not care about a $5000 annual fee. Besides, it will be paid by the massive points earned by the Card, so who cares, it’s a wash. You have to have a totally different mindset when you are dealing with this caliber of wealth. Just my two cents of a comment.
I didn’t even know that a card like this even existed!! I cringe with my $49 or $150 annual fee. I wasn’t aware that people were paying$2500, and now $5000.
All I can say is where did I go wrong in my
Life, and most of all how can I change my path so I wouldn’t be worrying about $150
Congratulations to all of you that can genuinely afford that lifestyle.
As I see the doubling only applies to american Centurion cards right?
In some countries the fee was already close to 5000$ before this announcement.
Apparently the initiation fee is now $10k.
Lunacy. People scrabbling to get the the front of the queue to hand their money to profiteering banks. So many travel sites promote these ludicrous cards ( and get paid for doing so) as the best thing EVER ( or at least since sliced bread) , only to go into shock/horror meltdown when benefits are diminished a short time later….but then it’s time to start flogging the new greatest card, and the cycle continues.
I’m glad Matthew doesn’t engage in this nonsense. Financial institutions are on the same rung of the ethics ladder as Big Tobacco.
I believe this is a precursor to AMEX Platinum increasing annual fee to $1000+ or AMEX introducing a new premium card. If the former, benefits of Platinum will be boosted. If the latter, the new card will feature elevated benefits and the Platinum benefits will be diluted to encourage the upgrade to Platinum+. Appetite for experiences and posh status seem to be unlimited.
I would be all for an increase in annual fee up to $2,500 on the AMEX Platinum card if it came with even stronger benefits befitting a higher annual fee including Delta Gold status, Equinox discounted membership fee if paid on the Platinum card, & an increased annual credit for Saks Fifth Avenue. I think an increased annual fee might help to lead to a reduction in the crowding in the Centurion Lounges.