Our 2023 bank card predictions and developments: What did we get proper and mistaken?

A 12 months in the past, we made our greatest guesses at what would occur with bank card rewards in 2023.

The previous 12 months has been full of revolutionary developments — and protracted challenges — within the bank card trade.

Let’s take a second to revisit the predictions we made initially of the 12 months and assess their accuracy.

Greatest-ever gives will likely be uncommon: Right

2021 and 2022 noticed way more profitable welcome gives than this 12 months.

Of our prime 10 hottest bank cards, the Chase Sapphire Most popular® Card, The Platinum Card® from American Specific and the mid-tier Citi Premier® Card (see charges and costs) featured decrease welcome gives for many of 2023 in comparison with the earlier 12 months. Whereas there have been continued focused gives for choose Amex playing cards by the CardMatch software (topic to vary at any time), there have been only a few publicly accessible and best-ever welcome bonuses.


Nevertheless, a few of Chase’s playing cards have been the exception.

The Chase Freedom Limitless® launched a particular double money again provide in October. On the enterprise facet, we have seen a repeat of the all-time gives on the Ink Enterprise Money® Credit score Card and Ink Enterprise Limitless® Credit score Card, in addition to an virtually halving of the spending requirement to earn a 100,000-point bonus on the Ink Enterprise Most popular® Credit score Card (you now should spend $8,000 on purchases within the first three months of account opening).

Shift from premium playing cards to these with monetary advantages: Right

With continued financial uncertainty and stubbornly excessive rates of interest, customers have been shifting away from premium playing cards just like the Capital One Enterprise X Rewards Credit score Card to playing cards providing money again, engaging steadiness switch charges, and 0 or low curiosity on purchases.

Bank card debt will enhance: Right

Whole debt on bank cards hit $1 trillion for the primary time within the second quarter of 2023, reaching an all-time excessive of $1.08 trillion in Q3.

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Consequently, customers are involved with paying down debt and shifting to bank cards that supply extra tangible and instant cash-back and interest-saving advantages.


Associated: Find out how to consolidate and repay your debt

Enhance in ‘purchase now, pay later’ choices and utilization: Partially appropriate

We have not seen a major enhance within the variety of purchase now, pay later (BNPL) choices like PayPal Credit score, Afterpay and Klarna in 2023. Nevertheless, utilization of those providers has elevated.

In accordance with Bankrate, 10% of customers deliberate to make use of BNPL providers for winter vacation purchasing in 2023.

C+R Analysis has discovered that BNPL choices are extra common amongst girls (in comparison with males), renters (vs. householders) and Gen Zers and Millennials (vs. Gen Xers and Boomers).

Much less curiosity in crypto-earning playing cards: Right

Shoppers stay cautious of receiving crypto rewards like Bitcoin and Ethereum when spending money on day by day purchases. That is regardless of most prime cryptocurrencies remaining steady or rising in worth in 2023, following the 2022 cryptocurrency crash.


Associated: A round-up of playing cards that earn cryptocurrency rewards

2% money again is the usual going ahead: Partially appropriate

With one of the best cash-back bank cards, just like the Citi Double Money® Card (see charges and costs), providing a 2% again on all purchases (1% money again on the register and 1% money again if you repay your invoice, it has change into more and more tough for bank card issuers to amass new clients with playing cards providing lower than 2% again on on a regular basis spending.

That doubtlessly explains why Chase is at present providing an unprecedented double cash-back provide on one among its hottest cash-back playing cards (the Chase Freedom Limitless). For brand spanking new cardholders, you will take pleasure in an efficient incomes charge of a minimum of 3% on all purchases for the primary 12 months — with as much as 10% on choose purchases. Simply notice that your bonus money again will likely be deposited as a single lump sum inside six to eight weeks of the tip of your twelfth month-to-month billing cycle.

If customers are in search of cash-back earnings within the 12 months forward, they’re going to need to earn as a lot money again on every buy as potential.

Annual charges will proceed to climb: Right

We actually have not seen annual charges lower this 12 months. Actually, simply within the second half of the 12 months, we have seen charges enhance on 4 common journey rewards playing cards, principally from American Specific:


The knowledge for the Hilton Aspire card has been collected independently by The Factors Man. The cardboard particulars on this web page haven’t been reviewed or supplied by the cardboard issuer.

We have additionally seen will increase in licensed consumer charges, with the Amex Platinum rising its licensed consumer payment from $175 whole for as much as three customers to $175 per consumer (see charges and costs). Equally, the Citi AAdvantage Government card eliminated its extremely helpful perk of as much as 10 free licensed customers (together with Admirals Membership entry). Now, you will pay $175 for as much as three customers and $175 for every further cardholder thereafter.

Extra area of interest and associate merchandise: Partially appropriate

We predicted model partnerships between bank card issuers and types would broaden this 12 months, as we thought bank card issuers would search new partnerships to generate extra income — just like the Instacart Mastercard® from Chase, launched in 2022.

This proved to be partially appropriate. Whereas we did not see a slew of recent product launches, the next playing cards did hit the market in 2023:

We additionally realized about a minimum of one new product coming from Wells Fargo in 2024 — although it is unclear if new card choices will proceed to be the exception moderately than the norm subsequent 12 months.

Fewer business-related journey perks: Right

Enterprise journey continues to lag behind leisure journey — and can in all probability proceed to take action — prompting issuers to shift enterprise bank card perks away from journey towards spending.


For instance, though the refresh of the Amex Enterprise Gold card in October noticed the addition of upper incomes charges for transit and Amex Journey bookings, it was additionally accompanied by the introduction of assertion credit for eligible purchases at FedEx, Grubhub and workplace provide shops and a Walmart+ membership in addition to cellphone safety.*

*Eligibility and profit ranges fluctuate by card. Phrases, circumstances and limitations apply. Go to for particulars. Insurance policies are underwritten by New Hampshire Insurance coverage Firm, an AIG Firm.

Extra complimentary subscriptions and tough-to-use credit: Right

We have seen a continuation of the “couponization” of bank cards through assertion credit — a few of which could be difficult to make use of.

In earlier years, we noticed the introduction of broad-category or multiple-merchant assertion credit, like Amex Platinum’s $20 month-to-month digital leisure credit score — for use with seven retailers, together with Disney+ and The New York Occasions — and the $10 month-to-month wi-fi phone supplier assertion credit score on The Enterprise Platinum Card® from American Specific.


This 12 months, issuers have launched extra merchant-specific assertion credit, typically with stricter restrictions.

Following a Hilton card portfolio refresh within the second half of the 12 months, Hilton Surpass cardmembers now obtain as much as $200 in annual Hilton assertion credit — however it’s damaged up into $50 quarterly chunks to encourage extra frequent stays at Hilton properties.

Equally, the Citi AAdvantage Government card was refreshed with three new assertion credit. One in every of them was easy (as much as $120 again on eligible Avis or Finances automotive leases each calendar 12 months). Nevertheless, the opposite two require extra effort to make the most of:

  • As much as $10 in assertion credit score for Lyft every month — however solely after you’ve got taken three eligible rides in a given month
  • As much as $120 again on eligible Grubhub purchases — distributed as as much as $10 per 30 days

On the plus facet, Walmart+ members now get a complimentary Paramount+ subscription, and Instacart+ members get a free subscription to Peacock.

Learn extra: How lengthy does it take to obtain assertion credit from Amex, Capital One, Chase and Citi?

Clients will search for journey protections after complications: Partially appropriate

There have been far fewer journey disruptions in 2023 in comparison with final 12 months’s summer time journey chaos and Southwest’s vacation meltdown.

Nonetheless, customers proceed to seek for helpful journey protections both by journey insurance coverage coverage or a bank card that gives them at no cost. Vacationers need assurances that further prices they incur attributable to delays, cancellations, misplaced baggage or different issues will likely be reimbursed.

Area of interest entry and merchandise with prices to card issuers will go away: Right

The beginning of the 12 months noticed Capital One take away Precedence Move restaurant advantages from eligible playing cards, together with the Capital One Enterprise X Rewards Credit score Card. Moreover, attributable to overcrowding within the issuer’s lounge community, they may take away lounge entry for choose cardholders from the beginning of 2025.


Equally, Amex has tightened up its lounge coverage. As of February 2023, Platinum cardmembers should spend $75,000 or extra every calendar 12 months to get visitor privileges. Some Hilton cobranded playing cards are shedding Precedence Move lounge entry starting February 2024, and beginning in February 2025, entry to Delta Sky Golf equipment will likely be restricted for Platinum and Delta cobranded cardmembers.

Extra cardholders will spend their technique to elite standing: Right

It is potential to spend your approach towards elite standing by bank cards in a number of loyalty applications — for each airways and motels. We anticipate extra individuals to make the most of this profit in 2024 — as a result of they should.

Bank card issuers and loyalty applications are more and more turning frequent flyers into frequent spenders. They make a ton of cash from customers utilizing their cobranded bank cards, so they’re incentivizing this avenue.


Delta prompted an uproar amongst its fan base in September by saying drastic adjustments to its loyalty program. From 2024, Delta will consolidate all Medallion status-earning actions into one metric referred to as Medallion Qualification {Dollars}.

Vacationers will nonetheless earn MQDs on flights however will likely be pushed to spend extra on its cobranded bank cards — and through automotive leases, lodge stays and trip packages by the Delta web site and app. Delta calls this “rewarding clients for whole engagement.” Nevertheless, these adjustments have led some to surrender on incomes Delta elite standing — even with Delta backtracking on a few of them simply weeks after the unique announcement.

Learn extra: Is Delta Air Strains standing price it? What this dissatisfied soon-to-be-Diamond thinks

Backside line

Wanting again at our predictions for bank cards in 2023, we did fairly properly — as we obtained 9 appropriate and 4 partially appropriate. None have been fully off base.

General, the worth proposition of journey rewards bank cards was challenged attributable to rising charges, excessive rates of interest, much less profitable welcome gives and extra difficult-to-redeem assertion credit.

Nevertheless, there may be nonetheless large worth to be discovered within the rewards and advantages supplied by bank cards, particularly for these prepared to place within the effort to maximise their perks. That is so long as the Credit score Card Competitors Act does not intestine bank card rewards considerably.

As we bid farewell to 2023, keep tuned for our predictions for 2024 and prepare to comply with what lies forward within the ever-evolving world of bank cards, factors and miles.

For charges and costs of the Amex Enterprise Gold, click on right here.
For charges and costs of the Amex Platinum Card, click on right here.
For charges and costs of the Hilton Aspire, click on right here.
For charges and costs of the Hilton Surpass, click on right here.

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