topic Re: Why doesn't NFCU offer an Amex? in Credit Cards

Why doesn't NFCU offer an Amex?

USF813 — Fri, 02 May 2014 18:58:18 GMT

Does anyone have an idea as to why NFCU doesn't offer an American Express card? Penfed and a couple other credit unions do, plus USAA and now US Bank. I've been trying to find a reason why the membership and CU wouldn't benefit from such a card.

Re: Why doesn't NFCU offer an Amex?

Revelate — Fri, 02 May 2014 19:04:25 GMT

@USF813 wrote:
Does anyone have an idea as to why NFCU doesn't offer an American Express card? Penfed and a couple other credit unions do, plus USAA and now US Bank. I've been trying to find a reason why the membership and CU wouldn't benefit from such a card.

Comes down to money end of the day; if NFCU got better terms from Amex than Visa they'd probably switch overnight, but if not, then the question is how much having an Amex card worth to them? Probably not that much to my thinking, they have an uncompetitive niche. Chase doesn't have an Amex-transaction network card either, and nor does Citi... the US Bank one is an incredibly recent change.

Re: Why doesn't NFCU offer an Amex?

sailor_mercury — Fri, 02 May 2014 19:03:34 GMT

I have no evidence of the reason but my guess would be the cost of the relationship over the benefit to their customer. I'm not sure if having an AMEX card issued by XYZ gets you American Express membership (for Member as of XXXX dates and back dating). The card is still issued by a different financial institution and works on the AMEX network.

I'm not sure I see a benefit to having an NFCU AMEX over an NFCU Visa or MC.

Re: Why doesn't NFCU offer an Amex?

Revelate — Fri, 02 May 2014 19:05:42 GMT

@sailor_mercury wrote:
I have no evidence of the reason but my guess would be the cost of the relationship over the benefit to their customer. I'm not sure if having an AMEX card issued by XYZ gets you American Express membership (for Member as of XXXX dates and back dating). The card is still issued by a different financial institution and works on the AMEX network.

I'm not sure I see a benefit to having an NFCU AMEX over an NFCU Visa or MC.

It doesn't: only ones issued by the Amex banking side directly backdate.

Re: Why doesn't NFCU offer an Amex?

Anonymous — Fri, 02 May 2014 19:08:18 GMT

@Revelate wrote:
@USF813 wrote:
Does anyone have an idea as to why NFCU doesn't offer an American Express card? Penfed and a couple other credit unions do, plus USAA and now US Bank. I've been trying to find a reason why the membership and CU wouldn't benefit from such a card.
Comes down to money end of the day; if NFCU got better terms from Amex than Visa they'd probably switch overnight, but if not, then the question is how much having an Amex card worth to them? Probably not that much to my thinking, they have an uncompetitive niche. Chase doesn't have an Amex-transaction network card either, and nor does Citi... the US Bank one is an incredibly recent change.

I have a Citi AA Amex, though I guess that is no longer available.

Re: Why doesn't NFCU offer an Amex?

USF813 — Fri, 02 May 2014 19:08:34 GMT

Revelate - Citi does have an AA Amex. I don't know if they issue new ones anymore but I did see the application as recent as 2013.

Re: Why doesn't NFCU offer an Amex?

sailor_mercury — Fri, 02 May 2014 19:09:48 GMT

@Revelate wrote:
@sailor_mercury wrote:
I have no evidence of the reason but my guess would be the cost of the relationship over the benefit to their customer. I'm not sure if having an AMEX card issued by XYZ gets you American Express membership (for Member as of XXXX dates and back dating). The card is still issued by a different financial institution and works on the AMEX network.

I'm not sure I see a benefit to having an NFCU AMEX over an NFCU Visa or MC.
It doesn't: only ones issued by the Amex banking side directly backdate.

Thanks that's what I thought but wasn't sure. So it doesn't establish you as an AMEX member and you can't back date it. I don't think there would be any benefit over the NFCU Visa or MC options offered. Except I could use it at Costco.

I don't think it would be worth the cost to NFCU.

Re: Why doesn't NFCU offer an Amex?

Revelate — Fri, 02 May 2014 21:14:01 GMT

@Anonymous wrote:
@Revelate wrote:
@USF813 wrote:
Does anyone have an idea as to why NFCU doesn't offer an American Express card? Penfed and a couple other credit unions do, plus USAA and now US Bank. I've been trying to find a reason why the membership and CU wouldn't benefit from such a card.
Comes down to money end of the day; if NFCU got better terms from Amex than Visa they'd probably switch overnight, but if not, then the question is how much having an Amex card worth to them? Probably not that much to my thinking, they have an uncompetitive niche. Chase doesn't have an Amex-transaction network card either, and nor does Citi... the US Bank one is an incredibly recent change.
I have a Citi AA Amex, though I guess that is no longer available.

Oh yeah, thanks lurker and USF: I had forgotten about that card, I simply went and looked at the current offerings that Citi advertised on their website and didn't see a single one.

I guess the take away from that is this works in the opposite direction as well as apparently Citi may have discontinued the card for new applications.