300$ to close Your AMEX card (ymmv)

[akugami]

Originally posted by: JLee

Originally posted by: Caveman

Originally posted by: sapiens74
We spent 70k in the last year on our AMEX card, paid everything when it was due so I know they made money off us.

Actually, you probably made money on them... Especially if you had no annual fee...

You got to use their money for free... If you paid it off on time, they couldn't charge you late fees or interest... They "hope" people cannot pay balances in full... They count on it...

Are you aware that merchants pay significant fees to Visa/MC/Amex?

My company has massive credit card processing fees due to the amount of cards we receive. I can only imagine what the companies like Newegg that do 90% of their business through cards incur.

Basically there is a two fee system. One is a per transaction charge which ranges from 6 cents to 25 cents depending on card, transaction type and also based upon your business' standing in terms of credit worthiness and volume of business. The other is an interchange charge which I believe was a percentage of the money processed.

With 70k in purchases by sapiens74, I can assure you that AMEX made a very nice fee from merchant service fees alone. If you incurred finance charges from interest this is even better from the credit card companies' perspective.

 

[akugami]

Originally posted by: Jiggz

Originally posted by: JLee
Are you aware that merchants pay significant fees to Visa/MC/Amex?

Actually, it's 3% and 4% respectively of the charge amount.

There is a per transaction fee on top of the percentage.

 

[LokutusofBorg]

If you think a 3 or 4% transaction fee is even anywhere close to the same ballpark as the money they make from late fees and finance/interest charges then I'd like some of what you're smoking.

Make no mistake, this Amex purge is aimed at people they don't make money off of.

 

[herkulease]

why would you take this offer? if you charge a crap load on on your amex and even just have the costco rebate card one you can back just as much as this in a year. I've switched to exclusively using my amex card. Unless i go to some place to doesn't take it. I won't think twice about using any other one.

 

[Stas]

I concur. My gf and I don't even make 70K a year, let alone spend, but I just got an $80 rebate check for Costco for just basically buying gas all year cheaper than anywhere else

 

[jlee]

Originally posted by: akugami

Originally posted by: Jiggz

Originally posted by: JLee
Are you aware that merchants pay significant fees to Visa/MC/Amex?

Actually, it's 3% and 4% respectively of the charge amount.

There is a per transaction fee on top of the percentage.

The percentage also varies.

Originally posted by: LokutusofBorg
If you think a 3 or 4% transaction fee is even anywhere close to the same ballpark as the money they make from late fees and finance/interest charges then I'd like some of what you're smoking.

Make no mistake, this Amex purge is aimed at people they don't make money off of.

I've paid less than $10 in finance charges (thought it was nothing, but my year-end summary for '08 said I paid some somewhere..oops), and I haven't received this offer..

 

[wayliff]

I have 2 business AMEX and 2 personal AMEX - I pay 3 on time and in full always and I have another with a small balance with a locked rate...hopefully I don't get the offer.
AMEX is pretty much what I use except when it is not taken by the establishment...

 

[Ramma2]

I hope my wife gets one, her Amex Blue has been unused for the past year or so. I still use mine for internet purchases however.

 

[clipperfixer]

My guess is that this offer is for people that are having some trouble paying their bill, and are perhaps potential deadbeats, the real kind. I have had an AMEX card for almost twenty years, pay balance in full, and on time. I have an unused Blue card. (I only got it because I was tired of the constant mail bombardment about getting one) I am a deadbeat by industry standards, they don't get any late fees etc from me. I got yet another for the millionth time offer to get a platinum card yesterday. I have no idea why I need one, the green card works fine. I don't think they are getting rid of people that are having no trouble paying their bills in full. On the other hand they can have my Blue card for 300.00 bucks..........

 

[ibex333]

So does this mean that someone can buy something for $5000 then close their account and NOT have to pay off whatever they owe?

 

[beef5stew]

Originally posted by: ibex333
So does this mean that someone can buy something for $5000 then close their account and NOT have to pay off whatever they owe?

Nope, let's get a few things clear.
-AMEX is sending this to people they think may be going bankrupt. They want them to pay off their credit card before they file for bankruptcy.
-Credit card companies categorize their customers as a)transactors and b) revolvers. The transactors Pay in full, but use the card alot (so the company makes a ton off the fees charged to merchants). Revolvers keep a balance, so the company makes money off of the interest. Both customers are valuable, and both make money. The person the company DOESN't want is a person who has a card and doesn't use it.
-If you use this promotion, you have to pay off the card in FULL, then close the account in order to get the $300GC.

-Beefstew

 

[JDub02]

Just closed my wife's AMEX this past weekend and got her a card under my account. I hope the best for AMEX. Their customer service has been the best out of any company I've dealt with. Maybe with the exception of my corporate Diner's Club card. It's refreshing to call customer service and an American picks up the phone without ever going into an automated menu.

 

[Imported]

Hoping I get the offer. I haven't used my AMEX card in years..

 

[CPA]

BoA or Citi, can't remember which one, forgave portion of my balance up to $400 once if I paid off my account by a certain date. I was able to do it and they credited my account. It was a great deal. And no, it had no effect on my FICO.

 

[Engineer]

I'm worse than a deadbeat. I pay off every card that has a balance with anything above 0% interest and pay only minimum on EVERY card that has zero and have been doing this and rolling over for about 3 years. Money sitting in bank at 3 to 4.75% interest. Banks paying me for other banks money....fuck em.

 

[kreactor]

i'm worse than that, i have $650 account balance which caused amex to send me a check via snail mail
and next thing i know, those mofos hit me with a late fee

 

[Tegeril]

I just snagged a $326 cash back award on my Blue card...guess that makes me a transactor.

 

[Oakenfold]

I'm pretty sure this is going to be applicable to cardholders that are considered to be a "toxic asset" in their portfolio, it's a different way of trying to clean their balance sheets.

Everyone that pays their bill on time can forget about trying to make a quick $300, believe it or not Amex likes you, especially in this market.

 

[AnonymouseUser]

How is this a hot deal if it's by invitation only?

 

[jlee]

Originally posted by: AnonymouseUser
How is this a hot deal if it's by invitation only?

Reminds people to check their email..

 

[PingSpike]

I don't know why so many people think the "pay it off every month" people are considered deadbeats by CC companies. They still make the money on transaction fees as mentioned. They're just a low margin product compared to the high margin debt holders. But they're probably a steady product with a much more predictable revenue stream. Most businesses are considered smart when they have a diverse product lineup.

 

[Trey22]

Interesting.

They probably hate me since I used my Amex for everything, pay the full amount every billing cycle and get between $500-600 cash back annually.

 

[Bidhere23]

How do you know if your are eligible? Is it only if you receive a mailer?

 

[UDT89]

in other words since i pay on time and in full every month i get nothing.......sigh.

 

[Oakenfold]

Originally posted by: UDT89
in other words since i pay on time and in full every month i get nothing.......sigh.

Sounds like the "stimulus package".