topic Re: What’s the idea behind platinum cards? in SmorgasBoard

What’s the idea behind platinum cards?

SRT4kid93 — Mon, 16 Sep 2024 19:09:25 GMT

Which the exception of the Amex platinum it seems any card with the "platinum name" is basically an entry level sub prime card.

capital one platinum card is a good example, next to its secured card, the platinum is the lowest card they offer.

did companies just see the prestige and name behind the Amex platinum card and decide to start naming their cards platinum to make them seem more upscale than they really are?

companies have also done this black cards, I have a feeling that is why Amex changed the name of its black card. To differentiate themselves from all the other fake black cards.

I have even seen this with with metal cards, there's even a company out there that will turn any debit or credit card you have into a metal card.

so what's their game? Are companies just stealing the platinum name hoping it will give their cards a better look?

Re: What’s the idea behind platinum cards?

creditrizz — Mon, 16 Sep 2024 19:39:24 GMT

I think it may have been started by Amex, but aside from them it seems like every bank's bare bones card with no perks aside from promo apr

Once capital one started using it, the prestige was completely gone lol. Wonder if synchrony has one...

Even the Amex plat is seemingly available to almost anyone with a 680+ who's willing to pay for it. I find pretty good value in the business version since I spend in those categories anyway, and the lounge access at the airport is invaluable to me.

The physical card has become absolutely ridiculous though. Weighs a ton, and they keep making it thicker. Half of the time I can't get it out of my small card wallet without a struggle. But the fake ballers love to be able to throw it down and make the clink I guess.

Re: What’s the idea behind platinum cards?

SRT4kid93 — Mon, 16 Sep 2024 20:17:18 GMT

@creditrizz

Yes I think at least some of the appeal behind Amex's platinum is the fact that's heavy and metal, and so people love to show it off to impress their friends or whatever. There's a lot of people out there who are all about image. They will buy cars and houses they can't really afford, and maintain their house and lawn so it always looks pristine. Just so people think they are rich.

generally people view metal cards as something special, even tho like you mentioned, the requirements for the platinum card aren't really that special. You would think that as you go up in the Amex ranks the cards become more and more exclusive. So the green card would be easiest, then the gold, Then platinum. But this is not true, the under writing for them all are very similar.

The plat is probably even easier to get approved for than the gold card because the fee is like 2-3x more so they make more money on them. So I think the requirements are the same if not easier than the gold card. I could be wrong but I feel like The only real difference between them all in terms of exclusivity is their black card is invitation only.

I have heard that just to be considered you need to spend at least 100k/month on your gold/platinum, that's the minimum requirement to even be considered for invitation.

Re: What’s the idea behind platinum cards?

NoHardLimits — Mon, 16 Sep 2024 20:26:06 GMT

Back in the olden days of the 1970's, many banks started copying American Express and issued "Gold" cards as a higher level of card than standard. Then Amex introduced its "Platinum" card in the 1980's, and it wasn't before long that other banks began to copy that as well. More recent naming conventions seem to be using "Reserve" to designate a high level card (e.g. Delta Reserve, Altitude Reserve, Sapphire Reserve).

These days, the standard/gold/platinum grading is not that straightforward. Even Amex isn't exactly keeping the same definitions as its Platinum card isn't necessarily better than its Gold card; they just target different customers. As the OP pointed out, some banks are even calling their entry level cards "Platinum" now. It's more important than ever to carefully read the descriptions of any card product before applying.

Edit to add: I'm not sure that Amex ever changed the name of their black card. If I recall correctly, it was always "Centurion" but often nicknamed "Black".

Re: What’s the idea behind platinum cards?

Aim_High — Mon, 16 Sep 2024 20:36:17 GMT

@SRT4kid93 wrote:
Which the exception of the Amex platinum it seems any card with the "platinum name" is basically an entry level sub prime card.

capital one platinum card is a good example, next to its secured card, the platinum is the lowest card they offer.

did companies just see the prestige and name behind the Amex platinum card and decide to start naming their cards platinum to make them seem more upscale than they really are?

companies have also done this black cards, I have a feeling that is why Amex changed the name of its black card. To differentiate themselves from all the other fake black cards.

I have even seen this with with metal cards, there's even a company out there that will turn any debit or credit card you have into a metal card.

so what's their game? Are companies just stealing the platinum name hoping it will give their cards a better look?

There's been an evolution with names in my decades in credit, @SRT4kid93. Visa started out as a plain vanilla Visa card with no variations. Over the years, they've added more and more "levels" of card. Each level of card supposedly offers more and more perks and benefits, which equates to a sort of status or higher level of card. At one point, Visa would never have given the Platinum name, as the highest at the time, to a subprime lender. But from my understanding, the interchange fees vary with the type of card issued. Meanwhile, Visa doesn't mandate that an issuer provide all the perks at each card level. So what has happened over the years is that more issuers have access to higher levels of cards for increased swipe fees (and to try to attract consumers as a pseudo-superior card.)

Visa was launched as "BankAmericard" by Bank of America in 1958. The card became known as the Visa in 1976. I'm not sure when Visa first introduced their Gold and Platinum cards but I believe they were both around before about 1990 to 1995, from my recollection. A Visa Platinum used to be a much bigger deal than it is today. Most Visa cards did not have that distinction, so it was akin to having a Visa Infinite card today.

Per Wikipedia, current offerings are:

Traditional/Classic/Standard
Gold
Platinum
Premier (France only)
Signature (Worldwide except Canada)
Infinite
Infinite Privilege (Canada only)

In the USA, the Visa Infinite has only gained a foothold in about the last ten years and the number of VIs is still quite limited. (For example, Chase Sapphire Reserve/JP Morgan Reserve, Chase United Club, Chase Ritz Carlton, US Bank Altitude Reserve, Crystal National Bank, UBS, and most recently the Capital One Venture X.)

So this is why it's rare to see basic vanilla Visa or Visa Gold cards any longer. At one point, they were all that was available and the Gold was the prestige card. Now, Platinum seems to be the entry level with the Signature or Infinite above it for selected cards.

American Express introduced both the "Gold" (1966) and "Platinum" (1984) names and I believe they were the first to market both. And for many years, those were truly selective cards for which the average consumer might not qualify. Today, of course, times have changed.

Re: What’s the idea behind platinum cards?

SRT4kid93 — Mon, 16 Sep 2024 20:35:15 GMT

@NoHardLimits @creditrizz

why wouldnt amex copyright/trademark the gold and platinum name? i am 99.9% sure they have trademarked the "amex Centurion" name.

i mean i know they couldnt see the future and they had no way of knowing other companies would steal those names, but in general its a good idea to copyright things when you are the first to come up with it and theres any possibility of someone stealing it. These card names are assets to the company that created them, being the only company with the "gold" name drives up the exclusivity and appeal of the card, potentially drawing in millions of additional customers. But the name loses all of its appeal once other companies steal the name and use it for their entry level cards.

Actually, now that i think of it, i dont think any of the card issuers have done this? As @NoHardLimits mentioned, cards have started going to the "reserve" name for their top tier cards.

But again, one company must have been first, someone was first to say "okay i want to call our flagship card, reserve", and now there are probably a dozen companies with the reserve name. so again, why is no one protecting this stuff?

Re: What’s the idea behind platinum cards?

NoHardLimits — Mon, 16 Sep 2024 20:42:20 GMT

@SRT4kid93 wrote:
@NoHardLimits @creditrizz

why wouldnt amex copyright/trademark the gold and platinum name? i am 99.9% sure they have trademarked the "amex Centurion" name.

i mean i know they couldnt see the future and they had no way of knowing other companies would steal those names, but in general its a good idea to copyright things when you are the first to come up with it and theres any possibility of someone stealing it. These card names are assets to the company that created them, being the only company with the "gold" name drives up the exclusivity and appeal of the card, potentially drawing in millions of additional customers. But the name loses all of its appeal once other companies steal the name and use it for their entry level cards.

Actually, now that i think of it, i dont think any of the card issuers have done this? As @NoHardLimits mentioned, cards have started going to the "reserve" name for their top tier cards.

But again, one company must have been first, someone was first to say "okay i want to call our flagship card, reserve", and now there are probably a dozen companies with the reserve name. so again, why is no one protecting this stuff?

I would think that words like "gold" and "platinum" are too general to try to trademark.

Re: What’s the idea behind platinum cards?

SRT4kid93 — Mon, 16 Sep 2024 21:23:57 GMT

@NoHardLimits

You're probably right, still tho. It's unfortunate how companies come up with something and they are responsible for giving that name meaning and prestige and then every one else comes and takes the name and devalues it.

now you can have someone say "I have a platinum card" and you have no idea which card they are referring to. Does it really matter? No it's mainly used as a status symbol and most people don't care what type of credit card you have. But for me, it's always been my credit card dream goal to get an Amex platinum. So for people like us, who have worked incredibly hard to build/rebuild their credit, and finally get to our goal of getting an Amex platinum, and have the name no longer mean anything, it's like a little sad.

Re: What’s the idea behind platinum cards?

Aim_High — Mon, 16 Sep 2024 23:02:22 GMT

@SRT4kid93 wrote:
@NoHardLimits

You're probably right, still tho. It's unfortunate how companies come up with something and they are responsible for giving that name meaning and prestige and then every one else comes and takes the name and devalues it.

now you can have someone say "I have a platinum card" and you have no idea which card they are referring to. Does it really matter? No it's mainly used as a status symbol and most people don't care what type of credit card you have. But for me, it's always been my credit card dream goal to get an Amex platinum. So for people like us, who have worked incredibly hard to build/rebuild their credit, and finally get to our goal of getting an Amex platinum, and have the name no longer mean anything, it's like a little sad.

The status symbol reference from the viewpoint of the consumer is part of the truth, with the other aspect being the motivation of the lenders for higher swipe fees and attracting more applicants. Oddly enough, you were not alone in still believing that the AMEX Platinum card carries a special mystique, thanks to slick marketing from AMEX along with a slowly dying urban myth. Of course, at one point it was true but AMEX allowed Platinum to lose its luster a long time ago when they got greedier in marketing to the masses, IMO.

And this is a great time to tie into the "status symbol" aspect of the naming of a card, along with how status symbols change and evolve. As one article about the subject sums it up,

"7. It is important to note that the significance of status symbols varies across cultures and time periods. What may be considered a status symbol in one society may hold little value in another. Moreover, the emergence of new technologies and social trends constantly reshapes the landscape of status symbols."

At one point, having a Diner's Club card and a Green AMEX was the pinnacle of credit "status" and success. Then a Gold AMEX and a regular Visa. Then a Platinum AMEX and a Visa Platinum. Then an AMEX Centurion and a Visa Signature. Now Visa upped their game to the Visa Infinite. It's all a moving target.

Re: What’s the idea behind platinum cards?

Drifter73 — Mon, 16 Sep 2024 23:33:13 GMT

I'm sure I missed it mentioned already, but I have several platnum version cards and my main draw to them is that they generally have the lowest apy out of all the other card types and no AF. Some are even no FTF and no added BT fees or a flat rate cost regardless of tranfer amount (CUs mostly).

Rewards and points cards are cool, but if I need a BT or large purchase intending to carry a balance a while, a super low rate platnum is my first go-to choice.

Re: What’s the idea behind platinum cards?

TrapLine — Mon, 16 Sep 2024 23:56:34 GMT

Going back a long way in time (1973 or so) there was standard Visa (actually it started as a BankAmericard issued by Bank of America) and Master Cards that had starting CLs of $300 to $500 and no rewards or benefits.

Then, for instance Citi Bank came out with a Gold Visa Card (around 1979) and a minimum of a CL $5,000 (required your first unborn to qualify - so they said?) which included a few decent travel benefits (no rewards). Michigan National Bank upped the game (1982) by marketing a Gold Visa set in a Black Background (created talk and lots of show) and a $5,000 limit with travel benefits that were even more comprehensive.

Other banks started to dip their toes in the higher level card market and the race was on. Remember when MBNA started offering the Platinum MasterCard as an upgrade from the Standard and Gold in the early 1990's?

From there rewards slid in the door and I believe Citi was one of the early ones. Discover and FNBO worked a deal where the FNBO Discover earned 0.25 points for every dollar spent and Discover core cards were a little more 0.50 (around 2009).

Oh, a trip down memory lane. Will say, I think there were many eye catching and appealing cards back in the day. Today, I am not so impressed. Why don't we have more black exclusive cards ... while no one would see them it would just be fun to carry one.

Re: What’s the idea behind platinum cards?

NoMoreE46 — Thu, 19 Sep 2024 15:36:01 GMT

It is marketing rat race.
Next tier up will the Unobtainium Card.

Re: What’s the idea behind platinum cards?

wingennis — Tue, 24 Sep 2024 02:47:34 GMT

🤣

Re: What’s the idea behind platinum cards?

markbeiser — Tue, 24 Sep 2024 05:35:52 GMT

The world needs a Gold Pressed Latinum card!