Why Premium Credit Cards Are Here To Stay in 2026

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Call it a November surprise. After a 20-year legal battle over interchange fees, the transaction fees merchants pay to banks that issue credit cards, Visa and Mastercard announced a proposed settlement.
The proposed deal would reduce fees and give merchants more flexibility in card acceptance, easing the longstanding rule that requires businesses to accept all cards from a network (if they accept any). The news was first reported by The Wall Street Journal in mid-November.
That’s when the rumor mill started to spin.
Credit card experts, financial planners, accountants and business owners were debating over what would happen next. Merchants, finally given the option to decline select cards, could take direct aim at credit cards offering rewards. That would put premium cards earning higher rewards rates and access to luxury perks, like airport lounges, at risk.
That concern may be an overreaction. While it’s true that interest in premium cards hit a fever pitch in 2025, even as annual fees have spiked — upwards of $800 per year in some cases — the premium card slate doesn’t appear to be waning anytime soon.
Here, I examine the growth of premium credit cards over 2025 and explain why they’ll continue to grow in popularity in 2026.
The growth of luxury credit cards in 2025
While rewards credit cards have been around since the 1980s, 2025 was marked by annual fee increases and souped-up premium credit card offerings. A handful of new premium cards also entered the market.
In July 2025, Citi expanded its premium card lineup with the launch of the Citi Strata Elite℠ Card. The card, which offers highly sought-after perks like lounge access and statement credits, carries a $595 annual fee. This is actually among the lowest annual fees available for true premium credit cards. Notably, the card’s rollout drew criticism after some cardholders reported account freezes and service issues. In a statement to The Wall Street Journal, Citi said it regretted