Why doesn't American Express have charge cards without fees?

[killer_queen229]

It would just be so much better that way! And maybe if Citi, Chase had charge cards too and if those cards didn't have fees that would be awesome. 

[Burned2manybridgesB4]

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@killer_queen229 wrote:

It would just be so much better that way! And maybe if Citi, Chase had charge cards too and if those cards didn't have fees that would be awesome. 

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How would they profit, as well as provide rewards to their clients then?

[Anonymous]

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@Burned2manybridgesB4 wrote:

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@killer_queen229 wrote:

It would just be so much better that way! And maybe if Citi, Chase had charge cards too and if those cards didn't have fees that would be awesome. 

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How would they profit, as well as provide rewards to their clients then?

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Swipe fees?

[killer_queen229]

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@Burned2manybridgesB4 wrote:

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@killer_queen229 wrote:

It would just be so much better that way! And maybe if Citi, Chase had charge cards too and if those cards didn't have fees that would be awesome. 

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How would they profit, as well as provide rewards to their clients then?

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Yeah but they have cards without fees on them and some of those are their most popular (BCE). It's nice to have something awesome and not need to pay a yeary fee to use it. It's just a thought. 

[Burned2manybridgesB4]

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@Anonymous wrote:

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@Burned2manybridgesB4 wrote:

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@killer_queen229 wrote:

It would just be so much better that way! And maybe if Citi, Chase had charge cards too and if those cards didn't have fees that would be awesome. 

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How would they profit, as well as provide rewards to their clients then?

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Swipe fees?

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I forgot....slackin' today. Vacation in 24 hrs.

[killer_queen229]

What is "swipe" fees? Also, I noticed they do waive the fee for one year. 

[Burned2manybridgesB4]

I'm sure he's answering the "swipe," so I'll add this....Not all cards have deferred AFs with Amex.

[killer_queen229]

And what do you mean deferred fees? (sorry if I'm annoying you with questions lol). 

[Anonymous]

Swipe fees are the fees the merchant pays the bank and the network (which is the same in Amex case) for each transaction, the price a merchant pays for accepting credit cards.    The fees vary, depending on volume, contract and provider,  but are a few % of the charge, with Amex often charging more than Visa and MC.

Issuers make money in at least three ways:

1) Interest charges for people who don't pay in full.  Doesn't apply so much to charge cards, hence the concern from the other poster.

2) swipe fees.  This makes money whether or not the person pays in full.  People who S/D their cards don't provide revenue this way, so issuers will sometimes close a card after a period of non-use.

3) Annual fee.  Probably the least important, can often by waived, and is really relaitvely small as it is just a once per year charge.

[Anonymous]

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@killer_queen229 wrote:

And what do you mean deferred fees? (sorry if I'm annoying you with questions lol). 

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Some Amex, such as Plat, you pay the fee the first month.  So revenue comes in straight away