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How Bad Will It Get for American Express?
- steanne 11y agoi'd be more impressed if they hadn't done the half-assed chip-and-sig thing and actually supported pins.
- Exuma 11y agoIs AMEX really struggling... ? I really had no idea. That's really disappointing, how could that be?
- johansch 11y agoWhy would that be disappointing? (Unless you own stock..)
- AngrySkillzz 11y agoThey offer a strictly inferior, more expensive product in an industry that has been effectively commoditized.
- pound 11y agoThey have high fees. Plenty of small vendors do not accept Amex at all.
- cm2012 11y agoThis is typical modern Bloomberg reporting - telling a misleading, emotion driven story from anecdotal data and rumors. "The Amex people, most of whom had MBAs, sometimes found it amusing to deal with Costco veterans who spoke about starting out stocking warehouse shelves. Less endearing was the habit Costco executives had of referring to Amex as a “vendor.” That made the Amex people seethe. After all, they represented one of America’s oldest corporations. But they smiled and said nothing, and the corporate marriage endured for 16 years." Seriously?
- josefresco 11y agoI don't understand the criticism. The "personal" level at which this story was told, is an asset to the reporting. Many long form pieces follow this same formula; mixing personal anecdotes from subjects within the story, with factual "outside" sources of information to create a richer story.
- adamgray 11y agoIt seems like a hit piece from Bloomberg - someone must want AmEx's stock to drop this week.
- enahs-sf 11y agoThe Young Thug reference raised an eyebrow for me
- thehoff 11y agoWhile I don't entirely agree, this article put me off a little. The first three paragraphs didn't make sense to me and seemed like you said, anecdotal/rumor. Same with the part about Chenault at the Museum of Natural History event with Sheryl Sandberg and how "yet his dark slacks were creased, and his shoes gleamed as if they'd just been polished." Reads as if the author has something personal in this. What was he supposed to show up in?
- joezydeco 11y agoI got the impression the author was trying to reinforce the image of Amex being a stodgy Wall Street company that is increasingly out of touch with technology and culture.
- AdmiralAsshat 11y agoI was really bummed when I found out that the Costco Amex card was getting cancelled, as I was thinking about getting one. But having read the article: good. I'm glad Costco did not hesitate to tell them to take a hike when they found a better deal.
- JoshTriplett 11y agoThe Costco Amex vanishing seems like no big deal. However, Costco refusing to take Amex for payment at all introduces far more inconvenience.
- brewdad 11y agoNot really. Before AMEX, Costco had an exclusive deal with Discover. That's the definition of inconvenience. This new deal will result in a Costco branded Visa but Costco will be accepting ANY Visa card. For the vast majority of consumers this is much more convenient. FWIW, AMEX has been doing the hard sell trying to get me to switch to a new card. So far, I haven't seen any offers worth my time. It's a shame really. I've been a cardholder for 15 years and even worked for them for a few years. Personally, I see no reason to continue the "relationship".
- davidw 11y agoYeah, when we moved back to the states, I signed up with Costco. Only I couldn't pay for it with any of the cards that I had. So I also had to sign up for their Amex card. Quite a bit of paperwork and hassle...
- redblacktree 11y agoThere's always cash.
- s73v3r 11y agoNow here's the real question: Why won't Costco just buckle down and accept any major card?
- eggoa 11y agoFor something as fungible as credit card transactions, it's hard to understand how a "brand" could be truly valuable. (Or is the grocery store cashier secretly really impressed when I produce my Amex Blue?)
- magic_beans 11y agoI've live in New York and I've literally never been to a single bar or grocery store that accepts American Express. Anyone know why this is?
- astockwell 11y agoHigher fees than the competition. Otherwise known as their "brand premium".
- dpeck 11y agoThey charge significantly more off the top vs Visa/Mastercard, and they want their money before you get yours. I appreciate it because its good for me as far as consumer protection, but I fully understand smaller businesses not wanting to deal with the added expense/hassle.
- ulysses 11y agoFor regular businesses, the transaction fees (both % and per transaction) are higher for AMEX than VISA or Mastercard. So a lot of small businesses don't take them. With some processors, there's also a monthly fee if you take any AMEX, so it's better to not take it all.
- Sanddancer 11y agoAmex charges higher fees per-transaction. Because they're a charge card, they make their money off the transaction fees, and not off the interest rates a card accrues. Conversely, this means they have to charge more on the front-end to maintain profitability.
- maxerickson 11y ago
- crisopolis 11y agoArticle references Costco getting bummed that their customers could use VISA in plenty of places and that's correct. However, I'm an AMEX cardholder and I've yet to run into a place who doesn't accept AMEX. However, Costco is right AMEX is just a vendor and if they can find cheaper or better vendor with benefits then more power to them.
- ajross 11y agoYeah, but I'm in the demographic being discussed in the article: I'm an AMEX cardholder for the sole purpose of being able to shop at Costco. The AMEX doesn't otherwise come out of my pocket, for the simple reason that there are places that won't take it and I'm too lazy to turn around and look for the sticker on the door. When the Costco contract drops, I'm almost certainly going to cancel the account.
- thieving_magpie 11y agoReally? I only have an AMEX card and unless it's a chain store it's almost never accepted. I often get lectures from small business owners about the higher rates charged by AMEX and why they can't accept it.
- deleted 11y ago[deleted]
- ww520 11y agoAmex has been offering pretty sweet signing bonus for new cards. I think I have raked in enough points for two first class international flight tickets.
- mastre_ 11y agoNot a fan of elitism, however one good effect AMEX has on people who use their charge cards is to make them be more responsible with their spending habits. Credit cards make their money by charging interest on revolving credit, which steers people toward being less responsible with their spending. Ironically, I think the people who would stand to benefit the most from a charge card, those just getting started i.e. in college, probably don't qualify for a charge-only AMEX, whereas the credit card companies aggressively pray on them.
- NoMoreNicksLeft 11y agoChenault's strategy of pursuing the New Jersey EBT card program was when things really started to go downhill.
- d2ncal 11y agoI've been an AMEX user since 2002. I have a MasterCard also, and use it where AMEX is not accepted. However, I prefer using AMEX because: 1. It has a rock solid dispute system. I've disputed charges where the merchant didn't deliver on promise and AMEX took really good care of it. Same thing with a Visa card didn't go very well. You can do everything off the AMEX website and over email. With others, you have to call them and deal with lousy customer support. 2. They have a really good website and overall user experience. Its a pleasure to go to the website to see the charges, or to get a well laid out annual spending report. Their mobile app is also the best as compared to others. 3. They have stellar customer service. I rarely need to call them, but when I do, the wait times are in seconds. 4. They support mobile payments - Its the first one to be on Samsung Pay and I happen to have a Note 5. FWIW, I just have the "American Express Blue Cashback" card, which no annual fees.
- exw 11y ago> Same thing with a Visa card didn't go very well I agree with the overall sentiment of your post, but unlike Amex, Visa does not issue credit cards, and relies on banks ("Issuing Banks") to deal with disputes. So if you had a bad experience with your Visa card, you should consider switching to a different issuer, vs. just assuming that all banks that issue Visa cards will act the same.
- brianclements 11y agoYour experience point by point matches my own, the customer service feels exactly how it should. The premium product I need from Amex isn't the lounges and the prestige, just a credit card company that has my back and isn't trying to avoid me when I need to contact them. Let me also note that since Amex has become a commercial bank, they offer a FDIC insured savings account[1] at an extremely competitive .9% APY. That was the highest I could find a couple years ago when I started looking. That product too, to me, feels very premium. [1]https://personalsavings.americanexpress.com https://personalsavings.americanexpress.com
- tmaly 11y agoI have been an AMEX user since 2005. I love their customer service, and I like that my card is travel ready. I do not have to call up some place to tell them I am traveling over seas. That is a huge benefit for me.
- deleted 11y ago[deleted]
- platform 11y agoIn my view, AMEX will not survive, unless it innovates by creating new 'types and ways' of credit card usage. Eg offering multiple currency balances, digital currencies, using a card for non-payment functions, integrating with phones for security/etc. Their network is small and getting smaller, and I think soon corporations will just stop issuing AMEX to its employees for corp expenses (this were AMEX is still strong (guessing)) -- as there are enough attractive business-friendly alternatives are out there.
- iamleppert 11y ago"And you know the surest way to go broke? Keep getting an increasing share of a shrinking market. Down the tubes. Slow but sure. You know, at one time there must've been dozens of companies making buggy whips. And I'll bet the last company around was the one that made the best goddamn buggy whip you ever saw. Now how would you have liked to have been a stockholder in that company? You invested in a business and this business is dead. Let's have the intelligence, let's have the decency to sign the death certificate, collect the insurance, and invest in something with a future."
- Overtonwindow 11y agoAnyone else go into a Costco and then try to pay only to be hit with the Amex deal, and say no thanks? I wouldn't mind having a Costco membership, but the Amex thing really rubbed the wrong way, so I never bothered to get a membership.
- NN88 11y agoGoddamn this was brutal