Third Party Amex Issuers

[Anonymous]

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@SOGGIE wrote:
I have the FNBO co-branded Amex. I love it. No problems.

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That's not really co-branded, just an FNBO card that runs on the Amex network.  

BTW: they keep sending me offers for it.  Why do you love it?  Isn't it just a 1% card?

[SunriseEarth]

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@Open123 wrote:

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@thewally wrote:

They also offer a prepaid Amex Card, Amex for Target, Bluebird, and Serve.  I think they're willing to overlook prestige for profit.

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As they should, since their officers responsibilities to maximize shareholder value should be sacrosanct.

Prestige is a fine and dandy concept, so long as it leads to higher profitability.  Being a spendcentric model, unlike other issuers, Amex has always sought to leverage their brand's cult-like following (not unlike Apple) to realize a higher year over year profit margin than that of their competitors.  Prestige (or, perceived prestige) is a way for Amex to diffrentiate their products thereby commanding a higher price point; not unlike Apple products which all have higher profit margins than similar brands.

Over the years, I suspect Amex has found that merely marketing "prestige" alone is no longer sufficient to command a higher price point.  Arguably, Chase, and even Citi to an extent with newly added TY partners, has closed the gap considerably in the sought after arena of the affluent traveler demographics.  Before Chase, no issuer could even remotely compete with Amex in travel rewards arena.  Even now, Amex's and Chase's travel card portfolio are infinitely superior to any other issuer, with Citi (at least they're trying, but their like the little engine who could, but will always fall short) a distant third.

Because of competition from Chase (about time someone challenged Amex), I suspect Amex has come to the realization that they can no longer stand on prestige and reputation alone, but must offer more compelling and competitive offerings.  In the end, Amex deciding to be more inclusive is a strong positive, because when more benefit from a product or service, the better for everyone.

Prestige is a fine concept, but it should never be used as a reason for exclusion, which I think Amex has started to realize.  For this, we can all appreciate the intense competition brought to them by Gordon Smith (who use to run Amex's program) and his team at Chase.  We can only hope Citi or others will follow suit, since with more competition, we as consumers will all benefit.

*Edited* PS - Would like to see Barclays, Wells and BofA develop some true travel rewards programs.

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Excellent response.  There does seem to be a change in the current at AMEX, since they do have to evolve with the times to stay profitable.  Certainly, prestige (or the perception of it) isn't quite the draw these days that versatility is.  

[carlosjgg]

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@Open123 wrote:

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@thewally wrote:

They also offer a prepaid Amex Card, Amex for Target, Bluebird, and Serve.  I think they're willing to overlook prestige for profit.

---

As they should, since their officers responsibilities to maximize shareholder value should be sacrosanct.

Prestige is a fine and dandy concept, so long as it leads to higher profitability.  Being a spendcentric model, unlike other issuers, Amex has always sought to leverage their brand's cult-like following (not unlike Apple) to realize a higher year over year profit margin than that of their competitors.  Prestige (or, perceived prestige) is a way for Amex to diffrentiate their products thereby commanding a higher price point; not unlike Apple products which all have higher profit margins than similar brands.

Over the years, I suspect Amex has found that merely marketing "prestige" alone is no longer sufficient to command a higher price point.  Arguably, Chase, and even Citi to an extent with newly added TY partners, has closed the gap considerably in the sought after arena of the affluent traveler demographics.  Before Chase, no issuer could even remotely compete with Amex in travel rewards arena.  Even now, Amex's and Chase's travel card portfolio are infinitely superior to any other issuer, with Citi (at least they're trying, but their like the little engine who could, but will always fall short) a distant third.

Because of competition from Chase (about time someone challenged Amex), I suspect Amex has come to the realization that they can no longer stand on prestige and reputation alone, but must offer more compelling and competitive offerings.  In the end, Amex deciding to be more inclusive is a strong positive, because when more benefit from a product or service, the better for everyone.

Prestige is a fine concept, but it should never be used as a reason for exclusion, which I think Amex has started to realize.  For this, we can all appreciate the intense competition brought to them by Gordon Smith (who use to run Amex's program) and his team at Chase.  We can only hope Citi or others will follow suit, since with more competition, we as consumers will all benefit.

*Edited* PS - Would like to see Barclays, Wells and BofA develop some true travel rewards programs.

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the reason many people have amex is for the prestige, it is better to have a visa or mc because is accepted at twice more places but many prefer amex , so they are playing with fire. discover has not been able to get rid of the bad reputation they had back on their sear days for been a whitetrash card that is why the brand has not taken off and it is a good brand now.

[carlosjgg]

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@atd1970 wrote:

Just reading an article in Forbes about the growth of American Express third party issuers. Apparently, this maybe the future business model for Amex, and is generating increasing revenue from merchant services and royalties. Additionally, this model offers very little risk for Amex when compared to issuing their own cards.

The only third party cards I have come across are Dillards (GE), and Priceline (Barclay). I am sure that there are many more.

I am curious of people experience with third party Amex. Good, Bad, etc.

 i personally will never get a third party amex unless it offers unbeatable reward what is the point i am better off getting a visa or mc that is accepted at twice more places

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[wacdenney]

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@carlosjgg wrote:

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@Open123 wrote:

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@thewally wrote:

They also offer a prepaid Amex Card, Amex for Target, Bluebird, and Serve.  I think they're willing to overlook prestige for profit.

---

As they should, since their officers responsibilities to maximize shareholder value should be sacrosanct.

Prestige is a fine and dandy concept, so long as it leads to higher profitability.  Being a spendcentric model, unlike other issuers, Amex has always sought to leverage their brand's cult-like following (not unlike Apple) to realize a higher year over year profit margin than that of their competitors.  Prestige (or, perceived prestige) is a way for Amex to diffrentiate their products thereby commanding a higher price point; not unlike Apple products which all have higher profit margins than similar brands.

Over the years, I suspect Amex has found that merely marketing "prestige" alone is no longer sufficient to command a higher price point.  Arguably, Chase, and even Citi to an extent with newly added TY partners, has closed the gap considerably in the sought after arena of the affluent traveler demographics.  Before Chase, no issuer could even remotely compete with Amex in travel rewards arena.  Even now, Amex's and Chase's travel card portfolio are infinitely superior to any other issuer, with Citi (at least they're trying, but their like the little engine who could, but will always fall short) a distant third.

Because of competition from Chase (about time someone challenged Amex), I suspect Amex has come to the realization that they can no longer stand on prestige and reputation alone, but must offer more compelling and competitive offerings.  In the end, Amex deciding to be more inclusive is a strong positive, because when more benefit from a product or service, the better for everyone.

Prestige is a fine concept, but it should never be used as a reason for exclusion, which I think Amex has started to realize.  For this, we can all appreciate the intense competition brought to them by Gordon Smith (who use to run Amex's program) and his team at Chase.  We can only hope Citi or others will follow suit, since with more competition, we as consumers will all benefit.

*Edited* PS - Would like to see Barclays, Wells and BofA develop some true travel rewards programs.

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the reason many people have amex is for the prestige, it is better to have a visa or mc because is accepted at twice more places but many prefer amex , so they are playing with fire. discover has not been able to get rid of the bad reputation they had back on their sear days for been a whitetrash card that is why the brand has not taken off and it is a good brand now.

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I think "twice more places" is a bit of an exageration.  I have only ever found one place that didn't accept AMEX. 

For me, prestige doesn't play a role at all.  I am loving my Fidelity Amex because of the rewards and same thing for the BCE.  I have never assumed there was anything prestigious about it.  I've never even noticed anyone looking at any of my cards.  I hand them over and the cashier swipes it and hands it back.

I get that there is a perception of prestige amoungst some as well as cards that some people look down their nose at.  I just think it's more and more the majority of the general population who aren't so concerned with prestige at all and maybe that's the point.  One of my favorite cards is the PayPal Extras MC for the ~2.5% back on dining and it seems to get a bad rap so maybe a lack of prestige is a part of the reason why.

[Anonymous]

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@wacdenney wrote:

I  think "twice more places" is a bit of an exageration.  I have only ever found one place that didn't accept AMEX. 

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Certainly Amex is accepted less than Visa/MC through businesses as a whole, maybe not the ones you go to or in your area.  But overseas, there is much less acceptance.  I was amused to find this (from 2009, but not ancient): an Amex-provided list of all retailers accepting Amex in the UK.  The blurb says "reassuringly large" but to me it looks very small!

http://www.moneysavingexpert.com/credit-cards/amex-acceptance