When JPMorgan Chase said it was raising the annual fee by 45% on its popular Sapphire Reserve credit card, longtime cardholder David O’Brien didn’t notice.⁠ ⁠ Until a reporter told the 36-year-old New York lawyer that the fee will soon rise to $795, from $550, he assumed he had been paying less than $100 a year. A brief shock, acknowledged with an expletive, gave way to acceptance.⁠ ⁠ Top credit card companies have stumbled on a winning formula at odds with almost every other sector of America’s inflation-obsessed economy: Raising their prices is good for business. Already sold by the status the cards convey, a large number of customers are willing to eat the costs.⁠ ⁠ This is JPMorgan’s third and largest increase to its annual fee for the Sapphire Reserve card since it was launched in 2016 at $450 a year. It took effect this week for new customers and will be in effect in October for existing customers.⁠ ⁠ American Express, whose Platinum card usually carries the heftiest fee in its market segment, is expected to raise its $695 fee—even higher than the Sapphire Reserve’s—in its fall refresh, analysts say. ⁠ ⁠ Price hikes make the cards appear more exclusive.⁠ ⁠ Theoretically, the math can make sense. Chase touts the more than $2,700 in annual value on its refreshed Reserve card, including hotel and dining credits and travel perks. Amex Platinum offers similar benefits for frequent travelers.⁠ ⁠ But many perks go unredeemed. According to the latest data from the Consumer Financial Protection Bureau, cardholders earned over $40 billion in rewards in 2022, yet more than $33 billion went unclaimed—a 40% jump since before the pandemic. The average account sat on $150 in unused perks.⁠ ⁠ Read more at the link in our bio.⁠ ⁠ 📷: Tony Luong for @wsjphotos