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AMEX Zync Cardholder, Just Approved for Amex Platinum - Some details from my CSR talk...

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Alcibiades
Contributor

Re: AMEX Zync Cardholder, Just Approved for Amex Platinum - Some details from my CSR talk...

Another reason why Amex may have discontinued this card is that they are now really focusing on Bluebird and their other prepaid cards  / quasi debit products as a way to grow their customer base. The advantage for them is that there is no credit risk and there is no cost associated with credit card rewards going this route.

Message 21 of 28
pizzadude
Credit Mentor

Re: AMEX Zync Cardholder, Just Approved for Amex Platinum - Some details from my CSR talk...


@Alcibiades wrote:

Another reason why Amex may have discontinued this card is that they are now really focusing on Bluebird and their other prepaid cards  / quasi debit products as a way to grow their customer base. The advantage for them is that there is no credit risk and there is no cost associated with credit card rewards going this route.


I agree with this.   AMEX charge cards are designed to bring in most of their money from merchant card fees, not interest, which assumes that their cardmember base are big spenders.     I think this just didn't work out with Zync, which was targeted towards a younger, presumably less weathly, demographic.     Their prepaid cards fit this model just as well as Zync IMO.

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 22 of 28
Dustink
Valued Contributor

Re: AMEX Zync Cardholder, Just Approved for Amex Platinum - Some details from my CSR talk...


@pizzadude wrote:

@Alcibiades wrote:

Another reason why Amex may have discontinued this card is that they are now really focusing on Bluebird and their other prepaid cards  / quasi debit products as a way to grow their customer base. The advantage for them is that there is no credit risk and there is no cost associated with credit card rewards going this route.


I agree with this.   AMEX charge cards are designed to bring in most of their money from merchant card fees, not interest, which assumes that their cardmember base are big spenders.     I think this just didn't work out with Zync, which was targeted towards a younger, presumably less weathly, demographic.     Their prepaid cards fit this model just as well as Zync IMO.

 


It is just as easy to get a NPSL green, gold, or plat AMEX for a young person as it would be to get a Zync. 

 

Maybe the Zync just didn't carry a high enough AF for their liking. Not profitable enough.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 23 of 28
Duncanrr
Valued Contributor

Re: AMEX Zync Cardholder, Just Approved for Amex Platinum - Some details from my CSR talk...


@Revelate wrote:

@Dustink wrote:

They canceled it right after legal action was taken against them for the discrimination.

 

Maybe the courts made some odd ruling that forced them to discountinue that product base upon the passed discrimination. 


That almost certainly would've been made public in this case?  Where's Duncan for the legal analysis? Smiley Happy

 


The timing is suspect. Even if i did an analysis it may not answer the question. My guess is that Amex factored in all reasons before canceling Zync. The possibility of another adverse legal action would had been a component of it.


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 808 TU --- EX --- CK 804(FAKO-EX 821, EQ 823, TU 803)
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Message 24 of 28
Revelate
Moderator Emeritus

Re: AMEX Zync Cardholder, Just Approved for Amex Platinum - Some details from my CSR talk...


@Duncanrr wrote:

 


The timing is suspect. Even if i did an analysis it may not answer the question. My guess is that Amex factored in all reasons before canceling Zync. The possibility of another adverse legal action would had been a component of it.

Good points, hadn't thought of additional potential issues.  Many thanks for the quality response!




        
Message 25 of 28
pizzadude
Credit Mentor

Re: AMEX Zync Cardholder, Just Approved for Amex Platinum - Some details from my CSR talk...


@Dustink wrote:

It is just as easy to get a NPSL green, gold, or plat AMEX for a young person as it would be to get a Zync. 

 

Maybe the Zync just didn't carry a high enough AF for their liking. Not profitable enough.


Yep, the underwriting standards for charge cards seem to be fairly similar ~ although I believe that they tweaked the Zync to allow borderline approvals, a la the infamous Hard Limits Zync.

 

I think it was likely a combination of the low AF and lower spending customers that killed the Zync.

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 26 of 28
Dustink
Valued Contributor

Re: AMEX Zync Cardholder, Just Approved for Amex Platinum - Some details from my CSR talk...

The possibility of another adverse legal action would had been a component of it.

That's about what I said. So... +1

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 27 of 28
Dustink
Valued Contributor

Re: AMEX Zync Cardholder, Just Approved for Amex Platinum - Some details from my CSR talk...

Just so many things doomed that product.

 

Although, the merchant fee's alone were enough to sustain the product. The merchant fee's would cover the rewards and the litigation. 

 

But....Amex isn't there to sustain a product, they are there to make money.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 28 of 28
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