topic Re: American Express in General Credit Topics

American Express

SEBanker — Fri, 22 Jan 2016 18:49:28 GMT

Could be facing it's last few years as a stand alone company. Todays earnings report highlights the difficulty the brand is facing. Basically the fees for products are much to high in relation to the benefits. And millenials just don't want their cards.

Re: American Express

Anonymous — Fri, 22 Jan 2016 18:51:32 GMT

They have enough assets, including cash on hand, to weather a lengthy storm. Nothing will be happening any time soon.

Re: American Express

Anonymous — Fri, 22 Jan 2016 18:54:38 GMT

Interesting thread discussion. I burned them in my Chapter 13 so I don't and won't have another card with them, but always interested in what is happening with them. I really enjoyed having their cards.

Re: American Express

Anonymous — Fri, 22 Jan 2016 19:08:12 GMT

I really *want* to like and use them but their products just don't make a lot of sense for me. I don't travel.

So for a cash back card I chose BCE of course. But mostly I just burn them with Amex offers. They don't make much (if any) money from me.

Sallie is really holding me up. If Sallie got nerfed Amex would definitely just most if not all of those swipes.

Come with a 2% cash back card Amex!

Re: American Express

Mattopotamus — Fri, 22 Jan 2016 19:24:10 GMT

@Anonymous wrote:
I really *want* to like and use them but their products just don't make a lot of sense for me. I don't travel.

So for a cash back card I chose BCE of course. But mostly I just burn them with Amex offers. They don't make much (if any) money from me.

Sallie is really holding me up. If Sallie got nerfed Amex would definitely just most if not all of those swipes.

Come with a 2% cash back card Amex!

Yes please!

Re: American Express

pipeguy — Fri, 22 Jan 2016 19:26:50 GMT

The interesting part of their earning release statement was that they are cracking down on merchants that "suggest" customers use other cards (lower swipe fees) and they expect to increase their fees both to customers and merchants.

Seems counterproductive to me, but AmEx seems to believe their image is still worth more and their merchants and card holders will agree. Given the number of cardholders that buy in to the $450 "Platinum Card" image - most who do not benefit from the card $450 worth, AmEx might be right, but I suspect their earnings will not increase based solely on raising fees to merchants and card holders.

Re: American Express

DrZoidberg — Fri, 22 Jan 2016 19:27:53 GMT

It was expected after losing Costco. Amex is not going anywhere anytime soon. A couple years? Not a chance.

Re: American Express

Discover2016 — Fri, 22 Jan 2016 19:30:57 GMT

@SEBanker wrote:
Could be facing it's last few years as a stand alone company. Todays earnings report highlights the difficulty the brand is facing. Basically the fees for products are much to high in relation to the benefits. And millenials just don't want their cards.

All of the millennials I know have either the ED or the BCE and swear by those cards. A few also have the PRG/Plat.

Re: American Express

Anonymous — Fri, 22 Jan 2016 19:39:49 GMT

We're credit geeks. Most people don't understand all the details of major reward programs. Most people don't know that URs are generally better than MRs. Most people just see Amex as a status symbol and don't dig too deeply into the perks and rewards.

WEMC and VSP can have fees nearly as high as Amex, and banks are flooding wallets with those.

Also, Amex has a huge, highly profitable corporate customer base.

Re: American Express

SEBanker — Fri, 22 Jan 2016 19:45:43 GMT

I'm simply pointing out the trends. Not making predictions. If AMEX can't turn it around for shareholders then they will need to seek a partner. There are renewed calls for consolidation in the bankcard space and if you are a lender who's cardholder base in contracting then you will have problems going forward. AMEX is having a tough time making the change from what the company once was to what it needs to become. The current CEO and Mgt. doesn't have the vision to get them there. And it is coming out in the numbers in more ways than one.....not just the costco deal.

Re: American Express

Anonymous — Fri, 22 Jan 2016 20:30:23 GMT

AmEx cardholder base is growing, in US and global. They are getting hurt by FX rates because a larger share of their revs are global and those revs are less valuable when the dollar is strengthening.

Losing CostCo hurt, but the rumored swipe fee CostCo wanted was awful. The one Citi accepted means every swipe will be around breakeven. It was a horrible offer and AmEx was right not to take it.

They'll be fine when the dust clears. Competitors are making bad deals to take market share but those deals look unsustainsble, at least to me. AmEx had to eat some one time costs to keep up but I'm glad they aren't chopping off limbs to lose weight, so to speak.

They've basically renewed all of their remaining partner deals at today's rates, which looks bad upfront but will prove valuable as the market gets more competitive and other banks have to take even worse deals to keep pace in a year or two.

Re: American Express

JSS3 — Fri, 22 Jan 2016 20:32:27 GMT

I'd like to see American Express fall. They need to be humbled.

Re: American Express

DrZoidberg — Fri, 22 Jan 2016 20:41:32 GMT

@JSS3 wrote:
I'd like to see American Express fall. They need to be humbled.

How? Amex is one of the quietest of the lending banks.

Re: American Express

bdhu2001 — Fri, 22 Jan 2016 20:51:12 GMT

@JSS3 wrote:
I'd like to see American Express fall. They need to be humbled.

That's a horrible sentiment. AmEX didn't lead the bank melt down. They truly verify customer information and don't do business with new customers who are questionable. Thereby, having a lower default rate. In addition, they're an American company that employs thousands of people.

Every-time an American company fails, consumption changes and in the long run it affects all of us.

Re: American Express

Anonymous — Fri, 22 Jan 2016 20:56:08 GMT

@bdhu2001 wrote:
@JSS3 wrote:
I'd like to see American Express fall. They need to be humbled.
That's a horrible sentiment. AmEX didn't lead the bank melt down. They truly verify customer information and don't do business with new customers who are questionable. Thereby, having a lower default rate. In addition, they're an American company that employs thousands of people.

Every-time an American company fails, consumption changes and in the long run it affects all of us.

While they are certainly not particularly pure (fined for serious violations many times, like other big banks) I don't want them to fail simply because consolidation in this sector is very unlikely to benefit consumers. The more competition the better (although since the global banks often act like a cartel it may not make that much difference!)

Re: American Express

icyhot — Fri, 22 Jan 2016 21:34:03 GMT

I don't think it's that us millennials aren't interested in Amex, but we've seen so much meltdown from credit card debt we decide to stay away. Most of us just use debit, and Amex cards aren't tailored for us. Of all the people I know my age I know with a credit card, it's a Capital One card. Maybe if they rolled out an average credit/rebuilder card, they'd get more business. But I think they just pride themselves on exclusivity

Re: American Express

JSS3 — Fri, 22 Jan 2016 21:35:54 GMT

Banks are all mob with blood on their hands. I vouch for none of them. Amex is too intrusive and acts like their stuff is golden. That once popular/pretty/handsome kid who hasn't come to terms with the fact that their stock has dropped and they're no longer that TODAY.

Re: American Express

Anonymous — Fri, 22 Jan 2016 21:37:44 GMT

@JSS3 wrote:
I'd like to see American Express fall. They need to be humbled.

Humbled in what sense? There must be an unlying factor for such a strong statement. Do you mine sharing why you'd like to see them fall?

Re: American Express

JustBPatient — Fri, 22 Jan 2016 21:47:17 GMT

@Anonymous wrote:
@JSS3 wrote:
I'd like to see American Express fall. They need to be humbled.
Humbled in what sense? There must be an unlying factor for such a strong statement. Do you mine sharing why you'd like to see them fall?

Sounds like someone who can't get in with Amex. I think recently with the addition of ED, EDP, BCE and BCP, they are increasing their overall appeal and getting the attention of a different type of consumer. They aren't just charge cards anymore. I also think the reason CAP1 is so popular is one, they are easy to get and second they market the heck out of their cards and use celebritys to push them. That appeals to the younger generation for sure.

Re: American Express

CreditCuriosity — Fri, 22 Jan 2016 21:44:07 GMT

They aren't going anywhere.. Business segment alone on CC is HUGE and I would venture to guess dwarfs others card issuers for corporate cards. Now I am going to have to find facts aren't I