Here’s why elite credit cards are fighting for affluent shoppers

Americans are feeling bleak about the economy. Yet, despite headwinds, high earners are still spending like mad — and credit card companies are offering more and more perks to attract them.
But some experts are worried these additional rewards for the rich are raising costs for everyone else, from merchants to customers.
“Credit card companies (are) working to serve the most affluent customers more and more,” said Doug Kantor, general counsel at the trade group National Association of Convenience Stores (NACS). These companies “try to get (high earners) more rewards at everyone else’s expense by pushing those costs on to everyone.”
This year, both American Express and JPMorgan Chase added luxury perks to their top rewards cards. For example, the Amex Platinum Card now offers a $200 credit for an Oura ring, while the Chase Sapphire Reserve comes with a credit of up to $500 for high-end hotels; both cards have many other benefits like access to airport lounges. These new perks were paired with higher annual fees, with the Platinum Card now $895 and the Sapphire Reserve $795.
However, annual fees are only part of how credit card companies provide what they advertise as thousands of dollars in savings for cardholders.
These rewards are also funded by the fees that credit card companies charge merchants every time any customer pays with a card. These so-called swipe fees often include items like interchange, processing, and other charges that merchants must pay to credit card companies to accept their cards.
The US market has the highest of these rates compared to the rest of the world, “and that’s what’s used to fund these very rich rewards,” said Brian Riley, director of credit advisory services at Javelin Strategy & Research.
So, as the rich lean on credit cards with greater rewards, the price merchants pay to accept them has also gone up — forcing merchants to choose between lower profits or raising their own prices.
That’s why even cash payers end up contributing to these elite card rewards. Joanna Stavins, principal economist and policy advisor at the Federal Reserve Bank of Boston, found in her research that those who pay with cash and debit effectively “subsidize” credit card users by paying the same prices without reaping the rewards.
“It’s definitely high-income consumers who are more likely to benefit,” said Stavins.
Who actually pays for your credit card rewards?
There’s a growing divergence in spending between high- and low-income households. In September, credit and debit card spending for high-income households grew more than four times faster than low-income spending, according to data from the Bank of America Institute.
“There’s a gap, and the gap is widening,” said David Tinsley, the senior economist at the Bank of America Institute.
Almost half of US consumer spending comes from those with incomes in the top 10% — the highest percentage since at least 1989. And while most low- and middle-income earners prefer paying with cash or debit cards, a majority (51%) of households making more than $150,000 annually prefer credit cards, according to the Federal Reserve’s 2025 findings.
As credit card usage rises, so have acceptance fees for merchants. Since the onset of the Covid-19 pandemic these swipe fees have increased nearly 70%, according to NACS, which cited data from Nilson.
To combat this, NACS has lobbied for legislation that aims to promote competition and allow merchants to choose credit card payment networks with lower costs. Despite picking up key supporters when the law was introduced in 2023, such as now-Vice President JD Vance, the legislation hasn’t advanced and observers see little chance of it becoming law in the near-term.
Javelin Strategy & Research’s Riley said that without such legislation, credit card issuers have doubled down on premium cards that often charge consumers high annual fees and merchants higher fees to accept them — a lucrative business model in an economy where high earners see the fastest growth in spending and wages.
AmEx did not comment for this story, but their fees page says they provide “simplified options” for merchants to accept their cards. The company also offers lower rates for some merchants depending on their type of business, the amount of the transaction, and whether they’re in an emerging market.
Chase told CNN that while the Sapphire Reserve Card is designed for “affluent customers who deeply value travel, dining and experiences,” the company offers several types of credit cards for different types of customers.
Credit card acceptance comes at a cost
Some experts say these swipe fees are necessary for merchants to maintain the advantages of accepting cards.
Todd Zywicki, a law professor at George Mason University, has advocated against proposals to cap swipe fees, arguing that the growing use of credit cards has benefited merchants and consumers alike — giving businesses the flexibility to conduct purchases with no need for cash and providing consumers access to credit.
He noted swipe fees also support services like fraud prevention, which protect customers from paying for charges when their card is stolen.
And, he said, merchants can certainly choose to refuse card payments if the cost of accepting them is too high.
“They want the benefits of accepting credit cards without bearing the cost,” he said.
However, some research shows the divide may not be simply between rich and poor — but rather, that the benefits from these cards go to those with high credit scores at the expense of those with low credit scores.
A study published by the International Monetary Fund that looked only at credit card users found those with high credit scores — including those with low incomes — benefited from the use of rewards cards. High-income consumers with high credit scores gained the most, while high earners with low credit scores ended up losing out more than any other group, according to the researchers.
CNN’s Auzinea Bacon contributed reporting.