Citi charges $595 for ‘Strata Elite’ credit card to rival Amex, Chase

Citigroup Inc. launched a premium credit card designed to rival ones offered by JPMorgan Chase & Co. and American Express Co., the latest entrant in the increasingly crowded market for cards offering high-end perks.

The ‘Strata Elite’ card will feature an annual fee of $595 — a price that the bank says can unlock almost $1,500 in value if used to its maximum potential. It offers the largest points rewards for hotels, car rentals and attractions booked on Citigroup’s travel platform, as well as restaurant dining at peak weekend times.

The card also bakes in perks for customers who fly with American Airlines Group Inc., giving four passes per year to the airline’s airport lounges and the ability to transfer Citigroup “ThankYou Points” into reward miles with the airline. That follows an expansion of the firms’ existing card partnership in December, when American Airlines chose to make Citigroup the exclusive issuer of all its credit cards.

In addition to American Express and JPMorgan, Citigroup will be competing with other banks trying to break into the premium space, including Capital One Financial Corp. The customers they vie for are highly sought after, known for their willingness to pay annual fees, and reliably spending more and prioritizing travel and hospitality.

“It’s always been highly competitive — competition makes us all better,” Pam Habner, Citigroup’s head of US branded cards and lending, said in an interview.

At $595, plus $75 a year for each authorized user, the card is cheaper than JPMorgan’s Sapphire Reserve, which Habner helped launch when she worked there in 2016. That card’s annual fee will jump to $795 from $550, JPMorgan said last month.

Read More: JPMorgan Hikes Sapphire Reserve Fee to $795 in Card Overhaul

In addition to the perks rolled out by Citigroup directly, the Strata Elite card will be the first in Mastercard Inc.’s recently announced World Legend tier of credit cards, meaning it comes with an additional suite of benefits. World Legend cards include access to the Mastercard Collection, which translates into ticket pre-sales and streamlined airport security access, among other rewards.

“We designed benefits that we know our customers can use,” Habner said, adding that the card was designed to give customers rewards for types of spending, rather than handing them coupon-style rewards to use with specific companies.

This story was originally featured on Fortune.com