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Why Credit Card Fees Keep Getting Higher - WSJ

1. JPMorgan increased Sapphire Reserve's annual fee to $795, up 45%. 2. Customers pay higher fees for premium perks, increasing loyalty. 3. Over $33 billion in rewards went unclaimed in 2022, signaling complexity. 4. Higher fees may boost engagement from premium cardholders. 5. Only 9% of cardholders would cancel their card due to fee hikes.

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FAQ

Why Bullish?

Higher fees may increase revenue and loyalty, similar to past price hikes benefiting companies like American Express.

How important is it?

Changes in fee structure could significantly impact JPM's revenue and customer engagement.

Why Short Term?

Immediate revenue boost can be expected, but long-term loyalty effects will unfold gradually.

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