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How Bad Will It Get for American Express?

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Re: How Bad Will It Get for American Express?

#71

Post by s73v3r »

brewdad wrote: post #22
JoshTriplett wrote: post #6

Earlier quoted context omitted.

The Costco Amex vanishing seems like no big deal. However, Costco refusing to take Amex for payment at all introduces far more inconvenience.

Not 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.…

Now here's the real question: Why won't Costco just buckle down and accept any major card?

Re: How Bad Will It Get for American Express?

#72

Post by dcherman »

brewdad wrote: post #22
JoshTriplett wrote: post #6

Earlier quoted context omitted.

The Costco Amex vanishing seems like no big deal. However, Costco refusing to take Amex for payment at all introduces far more inconvenience.

Not 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.…

For some card holders, it may be worth it to transition to another no annual fee card rather than closing the account itself. Age of credit is one important component of your credit score, and my AMEX is my second oldest account.

Re: How Bad Will It Get for American Express?

#73

Post by s73v3r »

AngrySkillzz wrote: post #29
Exuma wrote: post #2

Is AMEX really struggling... ? I really had no idea. That's really disappointing, how could that be?

They offer a strictly inferior, more expensive product in an industry that has been effectively commoditized.

Their service for cardholders is strictly superior to any other card issuer.

Re: How Bad Will It Get for American Express?

#74

Post by platform »

In 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.

Re: How Bad Will It Get for American Express?

#75

Post by cthalupa »

branchless wrote: post #31
Sanddancer wrote: post #13

Earlier quoted context omitted.

Amex 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.

Yep - great to see them in trouble. Most small businesses hate them as they take from their bottom line. IIRC amex also tried to stop retailers letting customers know just how much they charge per transaction and wouldn't let shops offer different prices to counter-balance Amex greed. Overall they sound thoroughly nasty and I cheer their demise. ps whenever I can I use cash at an independent business so they keep the…

>Overall they sound thoroughly nasty and I cheer their demise.

They're wonderful as a consumer, and I would be quite sad if they were to go anywhere. I've had multiple large companies try to screw me over, and I went to Amex and they went to bat for me and took care of the issue.

I have 100% confidence that I will be taken care of for all purchases related to my Amex card, which I cannot say even for my other "prestige" cards such as the Chase Sapphire Preferred, etc.

Re: How Bad Will It Get for American Express?

#76

Post by iamleppert »

"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."

Re: How Bad Will It Get for American Express?

#77

Post by [deleted] »

pbreit wrote: post #65
zyxley wrote: post #28

Earlier quoted context omitted.

It seems to me like the company is caught between a rock and a hard place: the only way to make the card popularly accepted enough that the high-end "status" cardholders can use it anywhere they like is to dilute the brand by convincing as many people as possible to use it.

I'm wondering if they can play the Apple role of sticking with the higher end, but smaller user base. They already have enough cardholders and usage to the point where not accepting Amex is pretty brain-dead.

[deleted]

Re: How Bad Will It Get for American Express?

#78

Post by Exuma »

s73v3r wrote: post #73
AngrySkillzz wrote: post #29

Earlier quoted context omitted.

They offer a strictly inferior, more expensive product in an industry that has been effectively commoditized.

Their service for cardholders is strictly superior to any other card issuer.

That is the correct answer.
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