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They charge more in fees, and also pass on more as cashback/bonuses/prizes to customers. For example, a visa/mastercard might be able to kick back 1~2% for cas

They charge more in fees, and also pass on more as cashback/bonuses/prizes to customers. For example, a visa/mastercard might be able to kick back 1~2% for cashback. American Express might be able to go 2~3%. This is also why a lot of places don't accept Amex, the fees are higher and from the vendor's perspective they offer nothing in return. PS - The whole credit card system is too expensive, and inefficient, but that's what happens when three or four companies run the whole game.

commandar 13y ago
AmEx also offers a lot of other benefits for the consumer like lengthier chargeback periods and free extended warranties. They'll provide warranty coverage for a year past the manufacturer's warranty on items purchased with the card for no cost; it's the reason I put all my big ticket electronics purchases on my AmEx.
- greghinch 13y ago
  A lot of Visa/Mastercards also offer warranty coverage for at least a year. Not sure why they don't promote this better, but if you look in that little packet of fine print materials they give you, it's usually in there.
ericd 13y ago
The Chase Sapphire Preferred is generally competitive with the AmEx Gold Premier Rewards card, is a Visa, has lower fees, no foreign transaction fee, and has better transfer partners, on average (though they don't do their special transfer bonus, if you ever take advantage of those). I wrote a little webapp to help compare card rewards: http://www.creditcardcomparer.org http://www.creditcardcomparer.org I still need to add the other side benefits like warranties and the like, though, where the AmEx is generally better.
- rubyrescue 13y ago
  Tf you live outside of the US or just travel a lot, and have a US account, the Chase Sapphire Preferred is THE card to have. it saves me a lot of money. i like it slightly better than the Starwood Amex just because i can use it more places.
  - ericd 13y ago
    The Starwood AmEx also has a foreign transaction fee of 2.7%, I believe, so there's no real reason to use it outside the US, unless you're at a Starwood hotel and getting a huge bonus that way. In the US it's pretty excellent, though.
nicksergeant 13y ago
Their Blue Cash card w/ 6% cash back on groceries is particularly amazing: http://www304.americanexpress.com/getthecard/learn-about/BlueCash-Preferred http://www304.americanexpress.com/getthecard/learn-about/Blu... I end up getting about one "small grocery trip" free per month because of that.

commandar 13y ago

AmEx also offers a lot of other benefits for the consumer like lengthier chargeback periods and free extended warranties. They'll provide warranty coverage for a year past the manufacturer's warranty on items purchased with the card for no cost; it's the reason I put all my big ticket electronics purchases on my AmEx.

greghinch 13y ago
A lot of Visa/Mastercards also offer warranty coverage for at least a year. Not sure why they don't promote this better, but if you look in that little packet of fine print materials they give you, it's usually in there.

ericd 13y ago

The Chase Sapphire Preferred is generally competitive with the AmEx Gold Premier Rewards card, is a Visa, has lower fees, no foreign transaction fee, and has better transfer partners, on average (though they don't do their special transfer bonus, if you ever take advantage of those). I wrote a little webapp to help compare card rewards: http://www.creditcardcomparer.org http://www.creditcardcomparer.org I still need to add the other side benefits like warranties and the like, though, where the AmEx is generally better.

rubyrescue 13y ago
Tf you live outside of the US or just travel a lot, and have a US account, the Chase Sapphire Preferred is THE card to have. it saves me a lot of money. i like it slightly better than the Starwood Amex just because i can use it more places.
- ericd 13y ago
  The Starwood AmEx also has a foreign transaction fee of 2.7%, I believe, so there's no real reason to use it outside the US, unless you're at a Starwood hotel and getting a huge bonus that way. In the US it's pretty excellent, though.

nicksergeant 13y ago

Their Blue Cash card w/ 6% cash back on groceries is particularly amazing: http://www304.americanexpress.com/getthecard/learn-about/BlueCash-Preferred http://www304.americanexpress.com/getthecard/learn-about/Blu... I end up getting about one "small grocery trip" free per month because of that.