American Express (Amex) is one of the most prestigious and globally recognized credit card brands. Since its inception, American Express has provided customers with exclusive financial services, benefits, and rewards. It is not just a credit card company but a powerful financial institution offering various services, including banking, travel booking, and invoice management. The headquarters of American Express is located in the United States.
History of American Express
American Express was founded in 1850 as a courier service. Later, in 1891, it evolved into a financial company. Initially, it provided services like checks and money transfers. However, in 1958, American Express introduced its first credit card, marking a new era in financial services. Since then, it has established a strong presence in the credit card industry.
According to a Forbes report, American Express was ranked the 22nd most valuable brand in the world. As of December 31, 2019, Amex had 114.4 million cards in circulation worldwide, including 54.7 million in the United States. The average annual spending per card was $19,972. Currently, American Express operates in over 140 countries and employs more than 18,000 people in its Global Business Travel (GBT) division.
Features of American Express
American Express offers more than just credit cards; it provides various financial products and services. However, its credit cards remain the most popular offering, primarily available in categories such as Gold, Platinum, and Green cards.
Amex cardholders can make payments through various systems, ensuring a secure and seamless transaction experience. The company also provides travel benefits, including exclusive airport lounge access, hotel bookings, flight reservations, and discounts. Additionally, American Express issues co-branded cards in partnership with various companies, offering extra benefits. For instance, in Bangladesh, Amex has co-branded cards with Agora (a retail chain under Rahimafrooz Group) and the University of Dhaka.
One key difference between American Express and other card networks like Visa and Mastercard is that Visa and Mastercard function solely as payment network providers, supplying the necessary infrastructure to banks and financial institutions without directly issuing cards. In contrast, American Express acts as both a network provider and a card issuer.
American Express for Merchants
American Express offers various services for merchants, including business cards, corporate payment systems, and invoice management. Amex cardholders can use their cards at various international locations, making payments through multiple gateways and shopping platforms worldwide.
Campaigns & Reward Programs
American Express provides customers with cashback, discounts, and reward points. These points can be redeemed for travel, shopping, or other services. Platinum and Gold cardholders enjoy access to exclusive international lounges, enhancing their travel experience with added comfort and convenience.
Security of American Express
American Express ensures secure transactions through advanced chip technology, fraud detection, and real-time notifications. Each transaction generates a unique code to prevent card cloning. Suspicious transactions trigger instant alerts, and the "Zero Liability" policy protects customers from financial loss due to unauthorized transactions. Additionally, Amex offers mobile app features that allow users to freeze and unfreeze their cards for better control.
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Sources:
1. American Express Website
2. Wikipedia