The Rise of Couponization in Credit Cards

Credit card issuers have increasingly adopted a strategy of couponization, where they raise annual fees and provide unrelated credits to justify these increases. This trend began with the AmericExpress Platinum card in July 2021, which elevated its fee to $695 while introducing various credits such as Uber and digital entertainment. Following suit, many other cards, including the City Advantage Executive Card and Amex Business Gold, have incorporated similar tactics, often providing seemingly random benefits like restaurant and rideshare credits. This approach is seen as a way for issuers to market cards favorably, claiming high annual value without clearly stating the limitations associated with redeeming these credits.