American Express

[Fiches Mouser]

Apparently American Express is a bit of a DYKWIA!

Bloomberg has published an interesting feature on how AmEx lost their Costco contract, and has some tidbits on their strategies over time.

Seems relevant to the FF community since so many of us live in AmEx land.

How Bad Will It Get for American Express?

 

[Dr Ralph]

since so many of us live in AmEx land.

Really????????

I'm obviously missing something.

 

[Fiches Mouser]

Really????????

I know I do.

 

[docjames]

Really interesting article, thanks for sharing.

The "erosion" of benefits across all tiers of Amex cards is starting to be noticed by (savvy) users (such as AFF members).

In Australia it is the "surcharge difference" that is most visible, and reflecting some of their issues.

Will be interesting to see how Amex evolves (locally and globally) over the next 5-10 years, but I cant help but think it will be less benefits and less acceptance unless they lower fees, which hits benefits etc etc.

 

[Ewing]

In Australia it is the "surcharge difference" that is most visible, and reflecting some of their issues.

I can't remember the last time I was charged a surcharge as a customer. It's almost universally accepted where I live and work - even the local Chinese takeaway accepts Amex with no surcharge.

 

[Cruiser Elite]

Seems relevant to the FF community since so many of us live in AmEx land.

Really????????

I'm obviously missing something.

I know I do.

Me too again - applied and approved for Amex Plat - was Amex holder for 35yes until cancelling Cent 18mths ago - back into Amex land now with the 120K sign on bonus - I''ll harvest another 40K with referrals then transfer into SPG then onto AA - with the SPG transfer bonus should end up with 100K AA pts by my reckoning = almost 3 x o/w J flts to Asia - $400ea + booking fees has to be a bargain huh?

 

[yohy?!]

Interesting Amex charts - downward pressure on merchant fees but US acceptance seems a lot higher than in AU

Seems like Costco ditching their co-brand card was the beginning of a Domino effect that could impact up to 23% of their US cards in use, a huge impact to their business - could be the beginning of the end for them going the way of Diners or having to merge with another institution to remain competitive.

 

[moa999]

The $purchases / cards issued ratio though is Amex's advantage - Amex users spend more

 

[Simsy85]

Hmmm I live in CBR and it's frustrating how many people won't take it...

 

[lovetravellingoz]

Direct Amex Cards (not the bank issued ones) used to be a gold mine for earning points through various promotions and various wrinkles if one was savvy and pro-active.. Between my wife and I we would earna million or more a year from prely private spend. That has shrunk to a few hundred thousaond (ignoring any sign-on bonus promotions/ referrals).

These days you simply cannot do what you could do up 2 years ago. It is only those that can push company expenses/revenue/cash/fees through their cards who are still earning large numbers of points (though some of this is effectively buying points when surcharges are at play).

In my case it means that I am earning points now on a wider variety of cards with VISA spend as a % much greater than it used to be. Fortunately the last couple of years has been very lucrative for sign-on bonuses. "Shock-horror" I am also now earning more points again that have ended up at QFF, which is something I have tried to minimimise since discovering the benefits (much cheaper and one can actually get seats in the pointy end) of KF and various *A redemptions.

 

[Warks]

I have one but only since the Velocity one came out with the big sign-on bonus a couple of years ago. What puts me off using it is the surcharge - many places like petrol stations don't charge for Visa or MC but do for Amex. Hotels charge surcharges for all cards but extra for Amex. Only a couple of bucks but who wants to give money away for no reward. Also the big difference shows up when paying ATO bills - not sure how many cards still give points for that though - my MC recently notified me that it wouldn't give points any more for ATO transactions.

In summary if Amex was in the same region as Visa and MC for merchant charges then it would be more widely accepted and more widely used. They may well want to cling to their precious margins but any percentage of zero is still zero.

 

[straitman]

Really????????

I'm obviously missing something.

Many here do so maybe you are missing something. :shock:

 

[RAM]

I find it hard to get a merchant who takes AMEX without a surcharge.

Sure Coles and WoW do but the discount on the gift cards of 5% trumps the use of Amex.

Can get WoW cards using Amex without a surcharge but not Coles.

Most utilities I use won't take Amex without a surcharge or won't accept it at all - and if anyway Govt related them my Amex ccs only give 50% value anyway - so vs Visa - relatively pointless.

School fees- double surcharge vs Visa/MC.

Small fruit shop - takes Amex no surcharge - go figure?

Petrol Stations - non-Coles/Wow either double surcharge or don't take it - but most of the time use Coles/WoW petrol stations and GCs anyway (& Myer 1).

Even trouble with IGAs not accepting it.

The number of clothes boutiques that take it without a surcharge is high and same with women's shoe stores (as our statement shows).

Number of gift card sellers that apply surcharge (vs none for Visa/MC) also high.

Any that sell Coles cards with no surcharge for Amex?

 

[Timtammi]

Agree with your comments RAM. It's even worse in Europe. Having just spent some weeks there I found it almost useless which is really annoying as I get extra points for overseas purchases.

 

[Princess Fiona]

I don't find it difficult to use my Amex at all. Even online it's pretty easy to get around any blocks using PayPal for most merchants.

 

[get me outta here]

Talking of PayPal, I just got 2 points per $1 on my VA AMEX for AirBnB.

(I had inadvertently let the charge go through to my bank account. I called PP and asked them to put the charge on AMEX via PP and they complied and gave me a refund to PP. Pretty impressed)

I don't find it difficult to use my Amex at all. Even online it's pretty easy to get around any blocks using PayPal for most merchants.

 

[Dr Ralph]

Any that sell Coles cards with no surcharge for Amex?

There's none that I know of. Effectively it just means that when if I use an AMEX to buy the gift card the discount I receive will be less than 5%.

 

[Dr Ralph]

Many here do so maybe you are missing something. :shock:

Unlikely. I've checked my cards and considered their earn rates and the value I get by churning them for sign up bonuses far outweighs anything I could get by keeping an AMEX long term.

 

[straitman]

Unlikely. I've checked my cards and considered their earn rates and the value I get by churning them for sign up bonuses far outweighs anything I could get by keeping an AMEX long term.

Understood.

Churning is not an option for some people though and therefore they need to revert to picking the best ongoing cards.

 

[Boca68]

I don't find it difficult to use my Amex at all. Even online it's pretty easy to get around any blocks using PayPal for most merchants.

I'm with Fiona on this one. I don't really have any problem using my Amex at most places and excessive surcharges are definitely the exception nowadays, rather than rule.