American Express made two announcements last month: First, the financial services corporation will be cutting over 4000 jobs companywide. Second, interest rates will rise for over one million AmEx cardholders. This is following increased competition from Visa and MasterCard, reports that AmEx has been losing their wealthiest customers, and recent industry rumours that Costco and JetBlue will be ending their respective partnerships with American Express.
With that in mind, the recently announced rate increases will only affect a small portion of AmEx’s customers: 42.6 million AmEx cards were in circulation as of last year. Meanwhile AmEx’s card acceptance rate has grown closer to rivals Visa and MasterCard, due to the OptBlue program developed to make handling AmEx payments more attractive to small merchants.
You can read more about the rate increases and the challenges faces AmEx here:
AmEx Said to Boost Rates for More Than 1 Million Customers