American Express

[SEBanker]

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. 

[Anonymous]

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

[Anonymous]

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.

[Anonymous]

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!

[Mattopotamus]

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@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!

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Yes please!

[pipeguy]

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.

[DrZoidberg]

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

[Discover2016]

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@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. 

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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. 

[Anonymous]

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.

[SEBanker]

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.