How bad will it get for American Express?

[Anonymous]

---

@Gunnar419 wrote:

---

@Anonymous wrote:

---

@mitchblue wrote:

The article seems to make more fun the fact Amex people have masters degrees. Like it's a crime. 

---

Hmm, I didn't interpret the reading that way.  I understood it as a disconnect between people at Amex and the people in the trenches - stocking shelves you know..

---

Yes, same here. If the article is correct, Amex takes its image of exclusivity in a deeply personal way, down to the bones of its corporate culture. Major culture clash between that and the upstart, bare bones culture of Costco.

I also wouldn't be surprised if part of the culture clash is east vs west, urbanite vs suburban-rural west. Manhattan tends to view itself as the center of the civilized and monied world and Manhattanites (no offsense to those here) sometimes act as if the rest of the country is populated by the Beverly Hillbillies. Issaquah, WA, where Costco is headquartered, is a humble suburb in the foothills of the Cascades, near Seattle but not exactly on the beaten path. To people used to Wall Street and Broadway, it's downright quaint. Probably all this lends itself in some way to Amex's disrespect for Costco and Costco's lack of interest in pursuing Amex to the very end to keep the relationship.

Interesting article! Thanks!

---

Well said!!  In my opinion, Amex is somehow bringing this unto themselves somewhat in addition to all the other problems.. For small businesses alone for example, why are their processing fees higher than Visa and Mastercard? Alienating these businesses don't help their bottom line.

[Anonymous]

What to say ... American Consumers have changed?! Obtained my first AX Green and Gold Cards (charge) in 1973 along with a Diners Club and Carte Blanche Cards. At the time there was never any thought that the cards would be used at the everyday stores and shops. They were for the affluent (moneyed - in our own minds anyway) and restricted to the elite and high end shops. We carried the cards as a mark of status not so we could go into KMART, Walmart, Target or the Men's Warehouse. Gads! We did not expect to use them as an everyday cards. Now we expect to take American Express into Walmart or Costco (unreal). Anyway, AX is wrestling with the changed world and the difference in generations and shoppers. Look at what has happened to Diners Club and Carte Blanche. Will AX end up there? AX always had higher annual fees and higher Aprs after all they were exclusive. Will Americans buy that line today? As Paul Harvey used to say: "... and now for the rest of the story". As we gasp over the situation poor AX finds themselves in ... what about MasterCard? As some posters would say ... it is all about business and may the best company win!

[Thomas_Thumb]

---

@Spider15 wrote:

What to say ... American Consumers have changed?! Obtained my first AX Green and Gold Cards (charge) in 1973 along with a Diners Club and Carte Blanche Cards. At the time there was never any thought that the cards would be used at the everyday stores and shops. They were for the affluent (moneyed - in our own mines anyway) and restricted to the elite and high end shops. We carried the cards as a mark of status not so we could go into KMART, Walmart, Target or the Men's Warehouse. Gads! We did not expect to use them as an everyday cards. Now we expect to take American Express into Walmart or Costco (unreal). Anyway, AX is wrestling with the changed world and the difference in generations and shoppers. Look at what has happened to Diners Club and Carte Blanche. Will AX end up there? AX always had higher annual fees and higher Aprs after all they were exclusive. Will Americans buy that line today? As Paul Harvey used to say: "... and now for the rest of the story". As we gasp over the situation poor AX finds themselves in ... what about MasterCard? As some posters would say ... it is all about business and may the best company win!

---

Quite true, it is not about the consumer. Back in the day AMEX and Diners Club were targeted toward travelers - great alternative to Travelers checks - remember those? Often, the cards were company backed (big oil in my case). So, not necessarliy catering specifically to the affluent. Revolving CCs started coming on strong in the mid 80s as I recall.

http://www.fool.com/investing/general/2015/06/05/travelers-checks-the-3-times-youd-actually-still-u....

AMEX and Diners helped change the way we transact and I wish AMEX continued success. Perhaps they need to revisit how best to position their products in the marketplace.

[Anonymous]

Thomas_Thumb - Travelers Checks! As to big companies ... mine was Ford Motor. Great article on Traveler's Checks ... missed it on the first read. You may be interested to know that AAA has discontinued the issuance of Traveler's Checks. Hmm ... that Travel Card that is reloadable and not connected to any bankiing relationship looks a solid alternative?!

[Pway]

Very interesting read. 

[vanillabean]

I don't know. It seems the author feels for Amex and unfortunately oversimplifies Costco; he likely has the inside scoop on the former far more than the latter. Costco can't be reduced to just savings; they too understand the value of perks, and they treat their employees considerably better than say Walmart and Target. But as so much has been demystified over the last some years and in parallel the income inequality nationwide has steadily increased, I don't see the split between Amex and Costco as a surprise.