topic Re: AMEX feeling the heat in Credit Cards

AMEX feeling the heat

Anonymous — Sat, 21 Jan 2017 12:38:49 GMT

Did anyone else read the WSJ article this morning on AMEX vs competitors? I know that it has been a subject (rewards being better from other creditors) that has been talked about fairly frequently in forums/blogs, but this is the second or third time in the last few weeks that I have seen articles like this in major papers. The articles make it seem like AMEX is fairly confident about this year going forward... What are people's thoughts? Is Amex going to roll out some new stuff this year (rewards structure/ big sign on bonuses) or just AMEX being over confident?

I have my little Green Card and my Cap1 QS (I've never really wanted more than two cards because I am not really a rewards chaser until my expenses changed recently, hence the Green Card), but I was thinking about applying for an AMEX EDP; I am thinking about putting it off for awhile to see if AMEX tries some big Q1 promo to boost itself back up....

As a complete side note, am I the only 30yo that still reads a physical newspaper?!? Kid at the counter stared at me like I had 6 heads when I answered his question as to why I read the paper and not the news on my phone with "I prefer to not use my phone for everything" ...maybe my wife is right and I was born in the wrong generation 😂😂😂 (apologies for any typos...I do at least use my phone to post)

Re: AMEX feeling the heat

Anonymous — Sat, 21 Jan 2017 13:01:22 GMT

Shep, keep reading that paper! LOL

Re: AMEX feeling the heat

redpat — Sat, 21 Jan 2017 13:45:22 GMT

All the CCC have been trying to compete w/ Amex on true travel benefits and perks and at the end of the day end up nerfing benefits and perks, just look at what happened to Citi Prestige.

It's like the race between the Tortis and the Hare in the end the Tortis ends up winning.

Re: AMEX feeling the heat

Anonymous — Sat, 21 Jan 2017 14:24:40 GMT

Oh no doubt that CCCs (like Citi) have nerfed some of their program perks, but that being said, the articles have tended to aim more on the financial state of AMEX, specifically how they are down significantly due to customers shopping elsewhere for a CC. I wonder if they will really want to play the game of weathering the storm and risk slipping more, causing more concern among investors as opposed to launching more significant rounds of perks/benefits to attract new customers and bring back older ones.

Re: AMEX feeling the heat

redpat — Sat, 21 Jan 2017 14:32:50 GMT

@Anonymous wrote:
Oh no doubt that CCCs (like Citi) have nerfed some of their program perks, but that being said, the articles have tended to aim more on the financial state of AMEX, specifically how they are down significantly due to customers shopping elsewhere for a CC. I wonder if they will really want to play the game of weathering the storm and risk slipping more, causing more concern among investors as opposed to launching more significant rounds of perks/benefits to attract new customers and bring back older ones.

Amex has is niche and they are not about to panic worrying about the flavor of the month club. That being said they did state that some changes are going to be made so we will just have to wait.

The 5x on airfare has made me change from CSR to Amex plat. Also, their new alliance w/ American Airlines have resulted reduced airfare that you cannot get through travel sites and on their website but you need an Amex plat card personal or business to get that perk.

Re: AMEX feeling the heat

Anonymous — Sat, 21 Jan 2017 14:39:56 GMT

I too try to use my phone the least possible and I'm 25 lol.

As for the AMEX, I hope they do bring out some new stuff.

Re: AMEX feeling the heat

Anonymous — Sat, 21 Jan 2017 14:56:40 GMT

@redpat wrote:
@Anonymous wrote:
Oh no doubt that CCCs (like Citi) have nerfed some of their program perks, but that being said, the articles have tended to aim more on the financial state of AMEX, specifically how they are down significantly due to customers shopping elsewhere for a CC. I wonder if they will really want to play the game of weathering the storm and risk slipping more, causing more concern among investors as opposed to launching more significant rounds of perks/benefits to attract new customers and bring back older ones.
Amex has is niche and they are not about to panic worrying about the flavor of the month club. That being said they did state that some changes are going to be made so we will just have to wait.

The 5x on airfare has made me change from CSR to Amex plat. Also, their new alliance w/ American Airlines have resulted reduced airfare that you cannot get through travel sites and on their website but you need an Amex plat card personal or business to get that perk.

I fly American Airlines and have the plat. How do we get reduced airfare?

Re: AMEX feeling the heat

ndjim75 — Sat, 21 Jan 2017 15:04:06 GMT

Redpast,

What is this new alliance with AA? When you state you cant get the reduced airfare through "their" website, are you referring to AA website? Do you book the flight through Amex travel with the Platinum card to take advantage of this new alliance? what are all the benefits of this new alliance?

Thanks in advance for any info!

Re: AMEX feeling the heat

BronzeTrader — Sat, 21 Jan 2017 16:13:24 GMT

@Anonymous wrote:
Did anyone else read the WSJ article this morning on AMEX vs competitors? I know that it has been a subject (rewards being better from other creditors) that has been talked about fairly frequently in forums/blogs, but this is the second or third time in the last few weeks that I have seen articles like this in major papers. The articles make it seem like AMEX is fairly confident about this year going forward... What are people's thoughts? Is Amex going to roll out some new stuff this year (rewards structure/ big sign on bonuses) or just AMEX being over confident?

I have my little Green Card and my Cap1 QS (I've never really wanted more than two cards because I am not really a rewards chaser until my expenses changed recently, hence the Green Card), but I was thinking about applying for an AMEX EDP; I am thinking about putting it off for awhile to see if AMEX tries some big Q1 promo to boost itself back up....

As a complete side note, am I the only 30yo that still reads a physical newspaper?!? Kid at the counter stared at me like I had 6 heads when I answered his question as to why I read the paper and not the news on my phone with "I prefer to not use my phone for everything" ...maybe my wife is right and I was born in the wrong generation 😂😂😂 (apologies for any typos...I do at least use my phone to post)

AmEX is on its own. What is the heat??

Re: AMEX feeling the heat

mongstradamus — Sat, 21 Jan 2017 16:18:28 GMT

well hopefully all this competition will bring better products for everybody. Idon't think amex would have made 5x airline purchases if it weren't for CSR, so hopefully there will be better products for everybody.

Re: AMEX feeling the heat

Anonymous — Sat, 21 Jan 2017 16:37:10 GMT

BronzeTrader essentially they are saying between losing Costco, C-Suite shortcomings, and various other things here and there, AMEX is consistently falling short on expectations financially. Despite massive marketing campaigns they are still down 8-10%, while other lenders (Chase in travel, Discover in customer service, etc) are not just creeping in on what used to be an AMEX market, they've taken it over. Part of it is being exacerbated because they make no money on APR for a large portion of the cards (Green/PRG/Plat) so between new/old customers going elsewhere and not making the kind of money other companies are on APRs from people that do use the charge cards, they are falling behind.

Re: AMEX feeling the heat

Anonymous — Sat, 21 Jan 2017 16:37:11 GMT

I am a little bit older than the OP and have not read a newspaper since probably 1995 or so... Too much wasted paper, and I only follow a select few types of news so internet on computer = win.

Anyhow, I am quite sure Amex is feeling pressure from other lenders to update their products to stay competitive.

As mentioned, the 5x on travel for Platinum was an indication, as well as the 50% refund on pay-with-points on the business Platinum. Those combined are huge for regular travelers.

Amex also seems to be more lenient by far on who it approves - as my experience with them has shown. They don't seem to care about recent inquiries, new cards, etc as long as you have clean reports. Most other lenders are a lot more conservative it seems.

Re: AMEX feeling the heat

redpat — Sat, 21 Jan 2017 16:55:27 GMT

@ndjim75 wrote:
Redpast,
What is this new alliance with AA? When you state you cant get the reduced airfare through "their" website, are you referring to AA website? Do you book the flight through Amex travel with the Platinum card to take advantage of this new alliance? what are all the benefits of this new alliance?
Thanks in advance for any info!

You have to go through Amex concierge offering preferred pricing. I found this from The Points Guy back in Sept or October.

The preferred pricing is on selected fights not everything but it's worth the call to see what your options are before booking.

I did one first class booking from coast to coast saved about $375 but some of my flights I booked were the same as AA online.

So do your homework before booking!

Re: AMEX feeling the heat

Anonymous — Sat, 21 Jan 2017 18:27:22 GMT

To my mind there are two different things here and are interrelated, but not so signficantly to change my view of this issuer. The stock apparently is not a good buy compared to Discover: http://seekingalpha.com/article/4038366-american-express-proves-unworthy-money

Also they've taken a bit hit with the lost Costco business. But that being said, I still treat Amex as one of my preferred banks and scout their cards for my next one. I'm not heavily invested in stock, so that's not my angle on it.

To the extent that their valuation begins to affect how their cards work and the bonuses then I'll take notice.

Re: AMEX feeling the heat

Anonymous — Sat, 21 Jan 2017 18:43:03 GMT

The C$R was a game changer. It gained so much momentum and attention that 'regular' non credit card people were getting hyped up on it.

Amex is great and it's my go to card (PRG) but they really need a change in upper management/CEO. Someone external, not just another internal promotion of people who think exactly the same. I think they're still the most profitable per transaction CC company, but if they don't change they will go away.

Re: AMEX feeling the heat

ndjim75 — Sat, 21 Jan 2017 23:12:55 GMT

Thanks Redpat! good to know and i appreciate you responding to my question.

Re: AMEX feeling the heat

BronzeTrader — Sun, 22 Jan 2017 01:39:00 GMT

The bonus game has to stop or at least slow down. Chase CSR is a good example. Now Chase comes out swinging the Chase Amazon Prime and will certainly take over from SyncB. This is very big and comes with minimal cost.

We know the CCC can't survive by giving out 3% to 5% on a consistent basis. Of course some of us pay 20% interest, but there is some limit.

Re: AMEX feeling the heat

awp317 — Sun, 22 Jan 2017 01:45:16 GMT

I used to be an ultra heavy user of both my personal and business platinum cards (talking 75k a month and up some months) and to an extent my old citi prestige because of the free hotel night and lounge access.

Now I pretty much only use my reserve card since the perks are IMO way better than the platnium, and I canceled my prestige card when they cut all the perks from it. Amex would have to come up with something pretty fantastic to get me to going back to using them again. I still use my amex Cash card for groceries and gas though. Rest of my cards are just part of my churning cycle (and my optima becuase its one of my oldest tradelines and the fact that they dont offer it anymore I think its kind of cool, some people confuse it with the "Oasis" though ), But I will hang on to the reserve until something better comes along.

Re: AMEX feeling the heat

Anonymous — Sun, 22 Jan 2017 01:57:19 GMT

AWP ... I feel like a lot of customers feel like you do which is where the original post comes from ("the heat") .. Like I said in a previous reply, I'm not a huge reward chaser. I really only have my QS because it was a PC'd plat that was my first card (I used debit for a decade) and the only reason I have the Green is because occasionally I have a purchase for work, that gets reimbursed, where it was just more convenient to have a NPSL and not worry about my Utl. Or a really high annual fee I couldn't justify... now that I am married/family my spending has changed so an ED/EDP or even a PRG makes more sense, sorta playing the wait and see game for now to see if there's a large offer (I missed the last round of 50k PRG). I have no desire to start trying to split points among several creditors, so I am hoping AMEX wakes up a bit

Re: AMEX feeling the heat

Anonymous — Sun, 22 Jan 2017 02:06:02 GMT

@BronzeTrader wrote:
The bonus game has to stop or at least slow down. Chase CSR is a good example. Now Chase comes out swinging the Chase Amazon Prime and will certainly take over from SyncB. This is very big and comes with minimal cost.

We know the CCC can't survive by giving out 3% to 5% on a consistent basis. Of course some of us pay 20% interest, but there is some limit.

They know exactly what they're doing.

A) A large amount of credit card holders carry debt which means they're paying interest.

B) 3 and 5 percent are on very specific categories. For the average person, they will use that card on EVERYTHING meaning many transactions Chase is only paying back 1%, not 3/5.