The Decline of American Express

Has anyone noticed the decline of American Express?

Sometimes I get sidetracked by minutiae. I don't let it get out of hand and I get back on track soon enough, but the latest small thing to come to my attention that I think reflects a larger issue is with Amex.

Specifically I'm talking about their Turbo rewards offer. Cardholders of long-standing were enrolled in the programme for free, now they're going to charge $99 a year for the privilege.

Why bother is my reaction, when you can get instant cash back with Platinum Visa. With Platinum Visa you see the reward immediately, but with Amex you have to go on a circuitous route to finally redeem whatever it is they're offering. Because you never see the cash back immediately the question always hangs in the air that the points earned may not always be worth what they started out as. I don't trust frequent flyer programmes for the same reason.

My big issue with the $99 charge (NZ Dollars, the charge or the rules as they apply may be different where you live, but carefully note their deception) is it is sold as something free in the promotional material received by post and email. Here is the critical statement and I ask you to decipher what it actually means:

"Best part is, the annual Turbo enrolment fee of $99 has been waived for you until 31 August 2017, so you can give it a try."

It looks like they're saying that if I get in now, then $99 is waived for the next year. No, what it actually means is I am currently enjoying a free promotion and at 31 August 2017 I will be charged $99. In very fine print you can only read with a magnifying glass, it says the cardholders can continue after the anniversary date for a fee.

It gets worse, because I called earlier about this and was automatically re-enrolled, if I undo this re-enrolment and certain $99 charge, right now, then I also leave the scheme and lose 5 months or so of Turbo. Fine I say, do that as I'm off to Platinum Visa and see ya later, I'm not going to be using American Express any longer.

American Express these days, seems to rely on deceptiveness, that is a worry I have to say. The larger issue must be they're coming under pressure and becoming greedy for money.  The same thing happened to Diners, remember them? They just withered away. I've still got a Diners card, call me old-fashioned. My advice, steer clear of Amex, and redeem any points outstanding if you get the chance.

See this Bloomberg article on how Amex lost Costco https://www.bloomberg.com/features/2015-how-amex-lost-costco/

[Update: I've got to get out more often - what just happened to me is a direct result of the argument between the CEO of Costco and the CEO of Amex, where the CEO of Costco told the CEO of Amex he was considered just another vendor like someone selling ketchup (read the above link for the full story). In one decision 10% of Amex membership departed and so last year Amex moved to shore up their membership by enticing them with more reward points (funny thing is I was thinking of dropping Amex for separate reasons but stayed with them as I was planning travel overseas). Then hungry for money they looked to convert those same members to a paying basis. Their revenue stream had been shrinking (I suspect Costco represented a large proportion of Amex revenue given how much Costco consumers spend each trip). So what Amex were doing to me and others was effectively taxing their old time members. Wow, just wow, breach of trust or what.]