Why Chase needs a competitor to the Amex Gold

12.07.2024 - 22:21 / thepointsguy.com

Chase and American Express are two of the most popular card issuers. Since they offer similar products, their cards are often compared.

The American Express® Green Card competes with the Chase Sapphire Preferred® Card, while The Platinum Card® from American Express has a notable rivalry with the Chase Sapphire Reserve®.

But what about the American Express® Gold Card? American Express's mid-tier lifestyle card has no direct competitor from Chase, which I see as a missed opportunity. So, here's what Chase should do to create a formidable opponent to the Amex Gold.

The information for the American Express Green Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

This term isn't official, but I chose to use it because, from my perspective, it best represents what cards like the Amex Gold are about.

Dining and buying groceries are two meaningful parts of people's daily lives. The restaurants a person visits and what they purchase at the grocery store are a big part of their lifestyle. So, cards offering bonus points on these purchases and statement credits at dining establishments and supermarkets target consumers who spend big in these areas.

With that established, we can dig a little deeper into why Chase needs an Amex Gold competitor.

The choice to create a mid-tier lifestyle card goes beyond creating two competing trios of cards. The Amex Gold has received criticism for its high $250 annual fee (see rates and fees) and "coupon book" credits. Consumers want reasonable annual fees for what a card offers, and they don't want benefits that are a hassle to use.

By listening to the woes of those dissatisfied with the Amex Gold, Chase can seize a sizable portion of its audience. Competition in the credit card market is good; it encourages innovation and discourages consumer-unfriendly practices.

If Chase can offer a great answer to the Amex Gold, it might encourage American Express to take a more competitive approach to future refreshes of the Amex Gold.

What could a Chase mid-tier lifestyle card look like? Since Chase's competitors to the Amex Green and Amex Platinum offer lower annual fees, it should continue that trend with this hypothetical card. The Amex Gold has an annual fee of $250, so a Chase competitor should target an annual fee between $150 and $195.

In terms of benefits, Chase would need to approach this very strategically. According to Reddit, one of the most common criticisms of the Amex Gold is the way it issues its monthly dining statement credit. This statement credit is limited to a handful of brands, including Grubhub, Shake Shack and The Cheesecake Factory. Reddit users also report frustration with