Credit Card Changes: Rise in Fees, Enhanced Welcome Offers, New Perks, and Introduction of Bonus Categories by Southwest Cards
In a recent portfolio refresh, Chase has announced changes to the annual fees and benefits for the Southwest Rapid Rewards business credit cards. The Southwest Rapid Rewards® Priority Credit Card will now cost $229 per year, an increase of $80. The Southwest Rapid Rewards Premier Business Card will see a more substantial increase, going from $99 to $149.
These changes are part of a wider overhaul of Southwest's business card offerings. The fee increases range from 43% to 54%, with business cards seeing a 50% hike. The new benefits include seating and boarding perks, aligning with Southwest Airlines' updated boarding process and introduction of assigned and premium seating. This enhancement aims to improve the cardholder experience by offering improved boarding priority and seating options.
The Southwest Rapid Rewards® Priority Credit Card will now offer 4x points on Southwest purchases and 2x points at gas stations and restaurants with no annual cap. Meanwhile, the Southwest Rapid Rewards Premier Credit Card will offer 2x points on grocery stores and restaurants up to $8,000 in combined annual spend.
Other new benefits for all Southwest credit card holders include free checked bags for the cardholder and up to eight additional passengers on the same reservation, standard seat selection within 48 hours prior to departure, Group 5 boarding, and one promotional code for a 10% flight discount each anniversary year (except on Basic fares).
However, some existing reward categories and perks will be going away in 2026. For example, after Dec. 31, 2025, the Priority card will eliminate its $75 Southwest travel credit and its annual "four upgraded boardings" perk. After Jan. 27, 2026, Early Bird Check-In will no longer be available for purchase.
Despite these changes, Southwest points remain valuable. According to NerdWallet's valuations, each point is worth about 1.3 cents. New cardholders can still earn significant rewards. For instance, new cardholders of any Southwest credit card can earn 100,000 points after spending $4,000 in the first five months of account opening.
This marks the first significant fee increase for Southwest cards in about a decade, reflecting the need to price cards consistent with the enhanced benefits offered. The changes will apply immediately for new cardholders and will take effect at the 2026 renewal for existing cardmembers.
In summary, the business cards now cost $149 and $299 per year respectively, with new benefits centered on seating and boarding privileges reflecting Southwest’s evolving airline model. The ongoing rewards for the Southwest Rapid Rewards® Plus Credit Card will now include 2x points on gas stations and grocery stores up to $5,000 in combined annual spend, while the Southwest Rapid Rewards® Premier Credit Card will offer 2x points on grocery stores and restaurants up to $8,000 in combined annual spend. The annual fee for the Southwest Rapid Rewards® Plus Credit Card will increase to $99 a year, up from $69.
[1] Source: Chase press release [2] Source: Southwest Airlines official announcement [3] Source: NerdWallet valuations [4] Source: CNBC article [5] Source: Forbes article
- The annual fee for the Southwest Rapid Rewards® Plus Credit Card will increase to $99 for the business cardholder, providing enhanced benefits such as improved seating and boarding privileges.
- The Southwest Rapid Rewards Premier Business Card now offers 2x points on grocery stores and restaurants up to $8,000 in combined annual spend, making personal finance management more rewarding for frequent spenders in these categories.
- As part of a comprehensive overhaul, the Southwest business credit cards now offer saving opportunities in the form of free checked bags for the cardholder and up to eight additional passengers on the same reservation.
