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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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  • edited July 2015
    Maurice said:

    I was in the dry cleaners today. There was a folded card on the table with a hand printed message. It said "We no longer accept AmEx cards".

    I paid a bill at a cemetery for my mom's memorial plaque. They took charge cards. But not American Express. VISA maybe the beneficiary.

    I'm very sorry to hear about your mom's passing.


    There was a ruling this year that stores could now direct buyers to other cards that the store preferred and that Amex's "anti-steering" rule was in violation of antitrust.

    "American Express Co. rules barring businesses from asking customers to use lower-cost credit cards violate U.S. antitrust law, a federal judge said in the first definitive decision on practices that allow card firms to collect about $50 billion a year in merchant fees."

    AXP did not have a great quarter yesterday and ultimately I think they have to take steps to come up with a defined plan going forward. They lost the Costco business - while they can say that it "didn't make economic sense", it was a pretty significant amount of their business. Visa/Citibank picked up Costco US and Mastercard/Capital One picked up Costco Canada. Amex also lost JetBlue.

    Investment-wise, I think people are moving money towards V and MA, which continue to not only take share, but I think the pure toll road model of V and MA appeals vs taking on the credit risk of AXP.

    Capital One also missed.
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  • I get 2% cash back across the board from my Fidelity Amex card. I haven't seen any Visa, MasterCard or Discover cards that can match the 2% cash back across the board. Because of this, I probably use my Amex card for about 80% of my spending. I use some of the other cards when they have selected 5% cash back for specific purchases for a limited time, or in the rare cases where AMEX is not accepted.
  • edited July 2015
    @MOZART325- I can easily understand your motivation to use the Amex card for the extra 1%, but it's unlikely that Amex is actually giving you that: more than likely it is being financed by higher processing charges to the retailers. That would go a long way towards understanding why Amex tried so hard to shut them up, and why Amex is now fading.
  • Agree. I have American Express card from private firms I work for. The is no spending limit on AmEx card whereas Visa and Master do. They are useful in long oversea business trips. Still prefer Visa/Master for personal use since they are more widely accepted. Recently new Visa card arrived with a smart chip on it for added security. Only several years behind the Europeans.
  • @MFO Members: There is no such thing as a free lunch, and althought I have the usual plastic, I pay for thing 99% of the time with cash or check.
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