American Express Plans Important Changes To Its Popular Gold Card

American Express

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is in the process of redoing its popular Gold Card, apparently in order to conquer more millennial consumers.

The credit card issuer announced Thursday a series of changes to the popular premium card, which was launched for the first time in 1966. The annual fee for the card will increase from $ 195 to $ 250. In comparison, Chase charges a $ 95 annual fee for the Sapphire Preferred Card, the lowest level of its premium card program.

Holders of the Go Card from the front will no longer earn rewards on purchases made at gas stations in the United States. The Gold Card Rewards program will now be exclusively dedicated to food and travel.

The card will now offer:

• 4X points in American restaurants (double the previous win).
• 4X points in US supermarkets for the first $ 25,000 purchases of this category each year (also double the previous bid).
• 3X points on flights booked directly from airlines or via the American Express Travel Portal (same as the previous award).
• A $ 100 credit on air fares
• A dining credit of $ 120 (up to $ 10 per month) that can be used in four non-advertised restaurant chains to date.
• Discounts on airline tickets, accommodation, cruises and vacation packages booked by American Express.

In addition, the Gold Card will feature a new sign up bonus for new members. Consumers subscribing until January 9 will receive an additional 25,000 reward points when they spend $ 2,000 in the first three months. American Express also offers a $ 20 statement credit for restaurant-related expenses of up to $ 100 during this three-month introductory period.

"It's about creating a product for consumers who are traveling less than their Platinum customers, but who really enjoy eating out or cooking at home," said Rachel Stocks, Executive Vice President of Premium Products and Foods. global benefits at American. Express.

Current Gold Card members will have a vested right to the program and will be charged the highest annual fee as membership is renewed.

American Express has not made any update on the rate of interest. According to the ValuePenguin personal finance website: "Late fees on American Express Gold can be considerably higher than other credit cards when cardholders do not pay their balance twice in a row. This is approximately 36% on an annual basis, against a 19% APR for credit cards (rates are capped at 29.99% for credit cards). For this reason, if you are unable to pay your balance in full every month, think twice before applying for this card. "

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American Express woo the millennials

The changes come at a time when other issuers are publishing maps designed for millennia interested in restaurant meals and travel. Capital One

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announced in August that it would begin offering a 4% discount on its dining and entertainment costs with its Savor card and the Uber visa.

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Card also offers a 4% cash back on purchases in restaurants and bars. Wells Fargo

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recently launched a new 3 point travel credit card offer on meals this summer.

The latest updates announced by American Express for the Gold Card also seem to be an effort to make it more competitive with Chase technology.

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Sapphire credit cards, said Matt Schulz, chief industry analyst at CompareCards.com

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"Credit card issuers are very focused on using wealthy millennials," said Schulz. "AmEx has long been the king of the hill for high-end credit cards. But this crown has been taken by Chase over the past two years and this space is very competitive. "

In addition to new rewards, American Express will also begin issuing metal credit cards to these customers, including a limited edition pink gold option.

American Express has made other announcements in recent months to highlight its attempts to better meet the needs of a millennial population. Earlier this year, the company launched a new no-fee refund card and another new card with travel bonuses including 6 points in some hotels.

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