How Amex took over the world



 There is one phrase an American Express cardholder hears probably more often than any other: “Sorry, we don’t take Amex.”

 No other credit card has even come close to surpassing American Express in spite of this well-known drawback. What began as a 19th century freight company didn’t launch its ubiquitous credit cards until more than a century later in 1958.  They still exude an unparalleled luster nearly seven decades later. Restaurant trips still end with a sea of shiny gold and silver Amex-branded plastic procured from wallets, as diners fall over themselves to bear the burden of the bill and collect precious points in the process.

 It shouldn't be hard to create a compelling rewards credit card because everyone likes free things. However, one company continues to dominate the market with little indication of serious competition. How it all began

 In 1850, three companies that specialized in transportation between New York and the Midwest were combined to form American Express. Among its three founders were William Fargo and Henry Wells, who more famously founded Wells Fargo in 1852, today one of America’s largest banks.

 American Express grew quickly, with 900 offices across 10 states by the time of the American Civil War, and began offering travellers’ cheques in 1891.  The company's financial and travel operations became its core offerings after the railways were nationalized by the US government in 1917. Dining is where credit cards got their start. In 1950, Frank McNamara invented the Diners Club Card – the idea was that rather than setting up a personal tab with each of the restaurants you frequented, you would be able to present them with a small card (made of cardboard) and make a single payment each month.

 This became the first "charge card," which is a type of credit card in which the balance must be paid off in full each month (Amex's cards still work essentially the same way; customers who don't pay off their balances in full each month face eye-wateringly high interest rates). The product's viability became clear as a large number of businesses began to accept charge cards. It wasn’t until 1958 that American Express launched its iconic green charge card.  To do so, Amex bought the American Hotel Association’s credit card to gain access to popular, established hotels and restaurants, which gave them an immediate edge.  At launch, Amex had 250,000 customers, though this number doubled in a matter of months, and the company’s income rose tenfold during the 1960s.

 However, Amex's charge card had its ups and downs. A lack of thorough credit checks meant that too many customers were not repaying their balances on time, if at all.  Amex, on the other hand, quickly resolved these issues by reducing the grace period for repayments from 90 days to one month and canceling delinquent accounts. By 1967, the company had a staggering two million cardholders who spent more than $1 billion annually, or $32.5 billion in current dollars. Amex became a huge success because it chose who it gave cards to; exclusivity and status were now built in. Over the following decades, Amex aggressively grew its partnerships, both in the US and internationally.  Millions more customers joined the charge card market as a result of its ease of use and widespread acceptance by numerous well-known brands. American Express Card

 The American Express card is a well-known credit card issuer in the United States.  They provide a comprehensive selection of cards in a variety of categories to both private and business customers. Here is a breakdown of American Express cards:

 Key features:

 Strong security: Amex cards are known for their robust security features, including chip and PIN technology and fraud protection.

 Rewards: Different reward programs with points, cash back, or travel miles are offered by various cards. Benefits: Amex cards provide various benefits such as complimentary concierge service, lounge access, and travel benefits.

 High credit score requirements: Getting approved for an Amex card typically requires a high credit score.

 Variety: Amex offers a wide range of cards catering to different needs and budgets.

 Types of Amex cards:

 Personal: Consumer cards such as the Amex Gold Card, Platinum Card, and Charge Card.

 Business: Cards for both large and small businesses, such as the Amex Serve Card and the Amex Business Platinum Card. Cards for specific industries: Cards tailored for specific industries, such as corporate cards for employees and healthcare cards for healthcare professionals.

 Amex cards in use today: The American Express® Gold Card comes with complimentary concierge service, double points for dining and travel, and one point for other purchases. The American Express® Platinum Card comes with a number of benefits, including complimentary access to lounges and travel credits, 5x points for dining and travel, and 2x points for all other purchases. American Express® Charge Card: Offers 3x points on travel and dining, 1x points on other purchases, and a $95 annual fee.

 The American Express® Business Platinum Card comes with a number of benefits for businesses in addition to 2x points on eligible purchases and 1x points on all other purchases. Overall:

 American Express cards are popular among consumers and businesses alike due to their strong security features, comprehensive benefits, and rewards programs.  However, they typically require high credit scores for approval.  If you want to apply for an Amex card, it's recommended that you check your credit score and look into your other options.