In a striking return to the luxury credit card space, Citigroup unveils its new Strata Elite card, carrying a $595 annual fee and designed to lure high-spending customers with generous rewards in travel and dining. After stepping away in 2021 by halting its Prestige card, Citi now reclaims its ground, entering a fierce market ruled by JPMorgan, AmEx, and Capital One. With rising interest rates and soaring consumer demand, this sleek, reward-heavy launch signals Citi’s clear intent to captivate the wallets of America’s top-tier cardholders.

STORY HIGHLIGHTS

• Citigroup reenters premium credit card segment with new Strata Elite

• $595 annual fee targets high-income customers focused on travel and dining

• Card promises highest reward potential on relevant categories

• Marks Citi’s comeback after Prestige card exit in 2021

• Faces competition from JPMorgan Chase, American Express, and Capital One

• Citi’s branded card revenue up 11% in Q2; retail services down 5%

Citigroup is stepping back into the high-stakes world of premium credit cards with the launch of its new Strata Elite card, aimed squarely at affluent customers who prioritize travel, dining, and high-value rewards. Priced at a $595 annual fee, the card enters a competitive marketplace that has become increasingly crowded with luxury offerings from the nation’s biggest financial institutions.

The timing is deliberate. With consumers showing renewed interest in experiential spending—especially in categories like travel and fine dining—credit card issuers are jostling for the attention of high-spending clientele. For Citigroup, the launch of Strata Elite marks a return to a space it exited in 2021 when it quietly stopped accepting applications for its then-premium Prestige card, which carried a $495 fee.

Now, after a period of reevaluation, Citigroup believes it has sharpened its understanding of what premium customers actually want.

“The modern customer, who is affluent with a passion for travel and dining, told us they want to maximize the rewards they can earn in the categories they care about,”
—Pam Habner, Head of US Branded Cards and Lending, Citigroup

The Strata Elite is designed to meet those expectations. Rather than offering a wide array of vendor coupons or niche perks, the card promises a more straightforward path to value: higher reward earnings in the most-used spending categories.

“They very clearly told us they don’t want a card that has a coupon book filled with merchant offers we may or may not use,”
—Habner added, emphasizing the directness of feedback received from target users.

This move is also a clear signal that Citi is ready to challenge its largest competitors once again in one of the most lucrative segments of consumer banking. JPMorgan Chase, the nation’s largest credit card issuer by purchase volume, recently hiked the fee on its Chase Sapphire Reserve card from $550 to $795, padding it with additional perks to justify the cost. Not to be left behind, American Express has announced that it will refresh its Platinum card—currently priced at $695—later this year. Capital One is also expanding the footprint of its Venture X card, introduced in 2021 with a $395 fee, and continues to push new incentives aggressively.

With average credit card interest rates exceeding 20%, according to the Federal Reserve’s latest data from May, premium cards remain a highly profitable business for banks. These cards not only bring in revenue through annual fees but also through high spending volumes and interest payments.

“Part of competing in this space is ensuring that we have innovative products that appeal to the needs and interests of our customers,”
—Citigroup CFO Mark Mason said earlier this month.

The new card’s launch also comes as Citigroup’s broader card business shows signs of healthy momentum. In the second quarter of this year, the bank’s branded credit card division saw an 11% year-over-year revenue increase, reaching $2.8 billion. This growth stands in contrast to its retail services card segment, which declined 5% to $1.6 billion.

Habner, who played a key role in launching JPMorgan’s Sapphire Reserve back in 2016, brings a deep understanding of what makes a premium card resonate in the market. The focus this time, she suggests, is on creating a product that cuts through the clutter and delivers genuine value.

By reentering this space with a highly targeted offering, Citigroup is not just introducing another rewards card—it is reasserting its presence among an elite circle of issuers vying for the country’s most lucrative consumers. And in today’s competitive financial landscape, clarity of value and customer relevance may matter more than ever.

As competition in the premium credit card segment intensifies, Citigroup’s launch of the Strata Elite card marks a calculated return aimed at redefining its presence among high-end consumers. With a sharp focus on travel and dining rewards, Citi positions itself to attract affluent users seeking value-driven benefits without the clutter of gimmicks. While rivals continue to raise fees and enhance perks, Citi’s streamlined strategy may prove compelling for discerning spenders. Whether the Strata Elite secures lasting traction remains to be seen—but the bank has made its intentions unmistakably clear.