American express plans to focus more on the cards that carry annual fees
American Express now plans to increase its focus on cards that carry annual fees. The announcement was made in an investor webcast, according to reports from the Wall Street Journal MarketWatch. The company is planning to introduce new fees in order to bring in more revenue.
Most conventional AmEx charge cards usually do charge an annual fee. However, as the company has moved into new markets, a few premium revolving credit cards are likely to charge a fee. For instance, the Blue Cash Preferred Card now carries an annual fee of $75 after it was re-launched. It is the same with Blue Sky Preferred card as. Some of the other cards such as Blue Sky, Blue, Blue Cash Everyday, don’t carry annual fees at the moment.
Following the settlement the company had with MasterCard and Visa, it is facing a shortage in revenue because the payments from these two major credit card issuers, is going to come to an end. During the fourth quarter of last year, the expenses tied to the credit card rewards programs had seen a 10% increase. This was part of the new customer marketing strategy. This resulted in increased expenses as well as loss of revenue for the company. Hence, the company made an announcement that it would be cutting down on the operational expenses during this year. This would include benefits, salaries, equipment, as well as occupancy.
AmEx is one of the major card issuing companies based on spending. The company is well-known as the card issuer for the affluent section. They have always had a loyal customer base and this section does not carry forward balances each month. AmEx on the other hand offers customers value added services. Despite the fact that American Express has positioned and marketed itself as the card for the affluent section, the company is at present trying to reach a wider range of customers. They are also looking at customers whose applications for a card may have been rejected in the past due to some reason. As per the available reports, around 20% of the prepaid credit cardholders are the ones who were previously been turned down by the company’s conventional charge cards. It has also been noticed that the new customers are much younger and are under 35 years of age. At present around 50% of these prepaid card holders are all in the younger age group according to reports.
Latest Credit Card Fees News
The other day Chase announced some changes to their cashback credit card lineup, introducing the Chase Freedom Flex credit card. The new Mastercard credit card boasts no annual fee, 0% intro APR on purchases for 15 months, and a variable 14.99% – 23.74% ongoing APR. Applications for the offer are supposed to be accepted starting […]
While the coronavirus is in no hurry to calm down, people continue to look for any means to reduce costs so that not be left without means of subsistence. If you are an owner of the Chase Sapphire Reserve credit card, there is some good news for you that you may have missed. As part […]
Thursday, January 30, 2020, all American Express Delta SkyMiles credit cards came out with renewed annual fees and/or benefits. Amex announced the updates back in September, but they were to come into effect only at the end of January. The changes apply to both consumer and business Delta SkyMiles credit cards. The first alteration is […]
Using credit cards, we constantly have to encounter different kinds of fees. So, during the 2019 U.S. News Consumer Credit Card Fee Study, hundreds of credit cards were examined in order to investigate annual fees, cash advance fees, foreign transaction fees, late and returned payment fees, and balance transfer fees more closely.
On October 20, 2019, 9 powerful tornadoes swept through North Texas. Although, fortunately, they brought no casualties, many homes and public buildings, including schools, stores, and business centers, were damaged or even completely destroyed. More than 90,000 local residents were left without electricity. The damage is estimated at about $2 billion. To aid individuals and […]