| American Express Company | |
|---|---|
 |
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| Type | Public (NYSE: AXP) |
| Founded | 1850 |
| Headquarters | New York, New York |
| Key people | Kenneth Chenault, Chairman & CEO |
| Industry | Finance and Insurance |
| Products | Financial services |
| Revenue | ▲ $27. A public company usually refers to a company that is permitted to offer its registered securities ( Stock, bonds, etc The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. For the game see 1850 (board game. 1850 ( MDCCCL) was a Common year starting on Tuesday (link The City of New York Kenneth Irvine Chenault (born Long Island, June 2, 1951, IPA:ʃenoː has been the CEO and Chairman of American Express A chief executive officer ( CEO) or chief executive is typically the highest-ranking corporate officer ( executive) or administrator For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" Financial services refer to services provided by the finance industry. In Marketing, a product is anything that can be offered to a Market that might satisfy a want or need Financial services refer to services provided by the finance industry. In business revenue or revenues is Income that a company receives from its normal business activities usually from the sale of goods and services 136 billion USD (2006) [1] |
| Net income | ▲ $3. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Net income is equal to the Income that a firm has after subtracting costs and Expenses from the total Revenue. 707 billion USD (2006) [2] |
| Employees | 65,800 (2005) |
| Website | www.americanexpress.com |
American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Employment is a Contract between two parties, one being the employer and the other being the employee. Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. A website (alternatively web site or Web site, a back-construction from the Proper noun World Wide Web) is a collection of Web pages The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. Financial services refer to services provided by the finance industry. The City of New York The company is best known for its credit card, charge card and traveler's cheque businesses. A credit card is part of a system of Payments named after the small Plastic card issued to users of the system A charge card is a means of obtaining a very short term (usually around 1 month loan for a purchase A traveler's cheque (also traveller's cheque, travellers cheque, traveler's check, or travelers check) is a preprinted fixed-amount Cheque
The company's common stock trades on the New York Stock Exchange under the ticker symbol "AXP. A voting share (also called common stock or ordinary share) is a share of Stock giving the Stockholder the right to vote on matters The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. A stock symbol or ticker symbol is a Mnemonic used to uniquely identify publicly-traded shares of a Corporation on a particular Stock market " It is one of the 30 stocks that comprise the Dow Jones Industrial Average and is ranked as the 74th largest company by Fortune. The Dow Jones Industrial Average ( also called the DJIA, Dow 30, INDP, or informally the Dow Jones or The Dow) is one of several Fortune is a Global Business Magazine published by Time Inc's Fortune|Money Group In 2007, BusinessWeek and Interbrand ranked American Express as the 14th most valuable brand in the world, estimating the brand to be worth US$20. BusinessWeek is a business Magazine published by McGraw-Hill. Interbrand, a division of Omnicom, is a branding consultancy Interbrand was founded in 1974 as Novamark by John Murphy, a former employee of Dunlop, in The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 87 billion. [1]
The current CEO is Kenneth Chenault, who took over in 2001. A chief executive officer ( CEO) or chief executive is typically the highest-ranking corporate officer ( executive) or administrator Kenneth Irvine Chenault (born Long Island, June 2, 1951, IPA:ʃenoː has been the CEO and Chairman of American Express
Contents |
History
Early history
American Express was founded in 1850, in Buffalo, New York, as a joint stock corporation that was a merger of the express mail companies owned by Henry Wells (Wells & Company), William Fargo (Livingston, Fargo & Company), and John Butterfield (Butterfield, Wasson & Company), as an express business. Buffalo (ˈbʌfəloʊ is the second largest city in New York State. In most postal systems express mail refers to an accelerated delivery service for which the customer pays a Surcharge and receives faster delivery Henry Wells ( December 12 1805 &ndash December 10 1878) was an American businessman important in the history of both the American William George Fargo ( May 20, 1818 - August 3, 1881) pioneer American Expressman, was born in Pompey New York [2] American Express first established its headquarters in a building at the intersection of Jay Street and Hudson Street in what was later called the TriBeCa section of Manhattan, and enjoyed a virtual monopoly on the movement of express shipments (Goods, Securities, Currency, etc. Hudson Street is a north/south oriented street in the New York City borough of Manhattan. TriBeCa is a Neighborhood in Lower Manhattan, New York in the United States. ) throughout New York State. In 1874, American Express moved its headquarters to 65 Broadway in what was becoming the Financial District of Manhattan, a location it was to retain through two buildings. The Financial District of New York City (sometimes called FiDi) is a neighborhood on the southernmost section of the borough of Manhattan which [3]
American Express buildings
In 1854, the American Express Co. purchased a lot on Vesey Street in New York City as the site for its stables. The company's first New York headquarters were in an impressive marble Italianate palazzo at 55-61 Hudson Street between Thomas Street and Jay Street (1857-58, John Warren Ritch), which had a busy freight depot on the ground story with a spur line from the Hudson River Railroad. Hudson Street is a north/south oriented street in the New York City borough of Manhattan. The New York Central Railroad, known simply as the New York Central in its publicity was a Railroad operating in the Northeastern United States. A stable was constructed nearby at 4-8 Hubert Street, between Hudson Street and Collister Street (1866-67, Ritch & Griffiths), five blocks north of the Hudson Street building.
The company prospered sufficiently that headquarters were moved in 1874 from the wholesale shipping district to the budding Financial District, and into rented offices in two five-story brownstone commercial buildings at 63 and 65 Broadway, between Exchange Alley and Rector Street, and between Broadway and Trinity Place that were owned by the Harmony family. Exchange Alley or Change Alley is a narrow alleyway connecting shops and coffeehouses in an old neighborhood of the City of London, England, Rector Street may refer to Rector Street (IRT Broadway–Seventh Avenue Line, a New York City Subway station Rector Street (BMT Broadway Line Broadway, as the name implies is a wide avenue in New York City. [4]
In 1880, American Express built a new warehouse behind the Broadway Building at 46 Trinity Place, between Exchange Alley and Rector Street. The designer is unknown, but it has a façade of brick arches that are redolent of pre-skyscraper New York. American Express has long been out of this building, but it still bears a terra cotta seal with the American Express Eagle. [5] In 1890-91 the company constructed a new ten-story building by Edward H. Kendall on the site of its former headquarters on Hudson Street.
By 1903, the company had assets of some $28 million, second only to the National City Bank of New York among financial institutions in the city. To reflect this, the company purchased the Broadway buildings and site.
At the end of the Wells-Fargo reign in 1914, an aggressive new president, George Chadbourne Taylor (1868-1923), who had worked his way up through the company over the previous thirty years, decided to build a new headquarters. The old buildings, dubbed by the New York Times as "among the ancient landmarks" of lower Broadway, were inadequate for such a rapidly expanding concern. In March 1914, Renwick, Aspinwall & Tucker filed for the construction of a 32-story concrete-and steel-framed office tower in which all of the company's operations, then in four separate buildings, were to be consolidated. The building proposal of 1914 was abandoned, probably due to the war in Europe, but was resurrected two years later in a reduced form, at an estimated cost of $1 million. [4]
The 21-story (plus basement), neo-classical, American Express Co. Building, was constructed in 1916-17 to the design of James L. The American Express Building at 65 Broadway in New York City 's Financial District is a 21-story Office building constructed in 1916-17 in the The American Express Building at 65 Broadway in New York City 's Financial District is a 21-story Office building constructed in 1916-17 in the Aspinwall, of the firm of Renwick, Aspinwall & Tucker, the successor to the architectural practice of the eminent James Renwick, Jr.. James Renwick Jr (b November 11, 1818, Bloomingdale New York - d The building consolidated the two lots of the former buildings with a single address: 65 Broadway. The American Express Building at 65 Broadway in New York City 's Financial District is a 21-story Office building constructed in 1916-17 in the This building was part of the "Express Row" section of lower Broadway at the time. The concrete-and-steel-framed building has an H-shaped plan with tall slender wings arranged around central light courts, a type of plan employed from the 1880s through the 1910s to provide offices with maximum light and air. Faced in white brick and terra cotta above a granite base, both facades employ the tripartite composition of base-shaft-capital then popular for the articulation of skyscrapers, with a colonnaded base and upper portion. The famous American Express Eagle adorns the building twice: there is an asymmetric eagle on the lower arch, while a symmetric eagle adorns the arch atop the building. The Broadway entrance features a double-story Corinthian colonnade with large arched windows. The building completed the continuous masonry wall of its block-front and assisted in transforming Broadway into the "canyon" of neo-classical masonry office towers familiar to this day[6]
American Express sold this building in 1975, but retained travel services here. The building was also the headquarters over the years of other prominent firms, including investment bankers J. & W. Seligman & Co. (1940-74), the American Bureau of Shipping, a maritime concern (1977-86), and currently J. J. Kenny, and Standard & Poors, who has renamed the building for itself[4][6]
Nationwide expansion
American Express extended its reach nationwide by arranging affiliations with other express companies, (including Wells, Fargo – the replacement for the two former companies that merged to form American Express. ) railroads, and steamship companies. [3]
Financial services
In 1882, American Express started its expansion in the area of financial services by launching a money order business[3] to compete with the US Post Office's money orders. A money order is a Payment order for a pre-specified amount of Money.
Sometime between 1888 and 1890, J.C. Fargo took a trip to Europe and returned frustrated and infuriated. James Congdell Fargo (1829 – 1915 is a former president of American Express. Despite the fact that he was president of American Express and that he carried with him traditional letters of credit, he found it difficult to obtain cash anywhere except in major cities. A letter of credit is a document issued mostly by a Financial institution, used primarily in Trade finance, which usually provides an irrevocable payment undertaking Mr. Fargo went to Marcellus Flemming Berry and asked him to create a better solution than the traditional letter of credit. Mr. Berry introduced the American Express Traveler's Cheque which was launched in 1891 in denominations of $10, $20, $50, and $100. A traveler's cheque (also traveller's cheque, travellers cheque, traveler's check, or travelers check) is a preprinted fixed-amount Cheque Year 1891 ( MDCCCXCI) was a Common year starting on Thursday (link will display the full calendar of the Gregorian calendar (or a Common [7]
Traveler's cheques established American Express as a truly international company. In 1914, at the outbreak of the First World War, American Express offices in Europe were among the few companies to honor the letters of credit (issued by various banks) held by Americans in Europe, despite other financial institutions having refused to assist these stranded travellers. World War I (abbreviated WWI; also known as the First World War, the Great War, and the War to End All
Loss of railroad express business
American Express became one of the monopolies that President Theodore Roosevelt had the Interstate Commerce Commission investigate during his administration. The interest of the ICC was drawn to its strict control of the railroad express business. However, the solution did not come immediately to hand. [3] The solution to this problem came as a coincidence to other problems during World War I.
During the winter of 1917, the US suffered a severe coal shortage and on December 26 President Woodrow Wilson commandeered the railroads on behalf of the US government to move US troops, their supplies, and coal. Year 1917 ( MCMXVII) was a Common year starting on Monday (link will display the full calendar of the Gregorian calendar (or a Common year Events 1481 - Battle of Westbrook - Holland defeats troops of Utrecht. The President of the United States is the Head of state and Head of government of the United States and is the highest political official in United States by Thomas Woodrow Wilson (December 28 1856—February 3 1924 was the twenty-eighth President of the United States. The United States Armed Forces are the overall unified military forces of the United States Treasury Secretary William Gibbs McAdoo was assigned the task of consolidating the railway lines for the war effort. The United States Secretary of the Treasury is the head of the United States Department of the Treasury, concerned with finance and monetary matters, and until William Gibbs McAdoo ( October 31, 1863 &ndash February 1, 1941) was an American Lawyer and political leader who served In Politics and Military planning, a war effort refers to a coordinated Mobilization of society's resources&mdashboth industrial and All contracts between express companies and railroads were nullified and McAdoo proposed that all existing express companies be consolidated into a single company to serve the country's needs. This ended American Express's express business, and removed them from the ICC’s radar. The result was a new company called the American Railway Express Agency company formed in July 1918. The Railway Express Agency was a rail express service and at one time the only one in the United States. Year 1918 ( MCMXVIII) was a Common year starting on Tuesday (link will display the full calendar of the Gregorian calendar (or a Common The new entity took custody of all the pooled equipment and property of existing express companies (the largest share of which, 40%, came from American Express, who had owned the rights to the express business over 71,280 miles of railroad lines, and had 10,000 offices, with over 30,000 employees).
American Express today
Current CEO Kenneth Chenault took over leadership of American Express from Harvey Golub, CEO from 1993 to 2001. Harvey Golub is the Chairman of the Board at the Campbell Soup Company as of January 2006 Prior to that, it was headed by James D. Robinson III from 1977 to 1993. James Dixon Robinson III (born 1935 was the Chief executive officer of American Express Co
Travel Division
American Express established a Travel Division in 1915 that tied together all of the earlier efforts at making travel easier, and soon established its first travel agencies.
Charge card services history
American Express executives discussed the possibility of launching a travel charge card as early as 1946, but it was not until Diners Club launched their own card in March 1950 that American Express began to consider seriously the possibility. A charge card is a means of obtaining a very short term (usually around 1 month loan for a purchase Year 1946 ( MCMXLVI) was a Common year starting on Tuesday (link will display full 1946 calendar of the Gregorian calendar. Diners Club International, originally founded as Diners Club, is a charge card company formed in 1950 by Frank X Year 1950 ( MCML) was a Common year starting on Sunday (link will display the full calendar of the Gregorian calendar. At the end of 1957, American Express CEO Ralph Reed decided to get into the card business, and by the launch date of October 1, 1958 public interest had become so significant that they actually issued 250,000 cards prior to the official launch date. Year 1957 ( MCMLVII) was a Common year starting on Tuesday (link displays the 1957 Gregorian calendar) Ralph Reed was the CEO of American Express in 1957 He was the person who made the decision to create the American Express Charge card, first issued in 1958 Events 331 BC - Alexander the Great defeats Darius III of Persia in the Battle of Gaugamela. Year 1958 ( MCMLVIII) was a Common year starting on Wednesday (link will display full calendar of the Gregorian calendar. The card was launched with an annual fee of $6, $1 higher than Diners Club, to be seen as a premium product. The first cards were paper, with the account number and cardmember's name typed. It was not until 1959 that American Express began issuing embossed ISO 7810 plastic cards, an industry first. ISO/IEC 78102003 is an International standard that defines four formats for identity or Identification cards ID-1 ID-2 ID-3 and ID-000
In 1966, American Express introduced the Gold Card and in 1984 the Platinum Card, clearly defining different market segments within its own business, a practice that has proliferated across a broad array of industries. Year 1966 ( MCMLXVI) was a Common year starting on Saturday (link will display full calendar of the 1966 Gregorian calendar. Year 1984 ( MCMLXXXIV) was a Leap year starting on Sunday (link displays the 1984 Gregorian calendar) American Express ( sometimes known as " AmEx " or " Amex " is a diversified global Financial services company headquartered in A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs The Platinum Card was billed as super-exclusive and had a $250 annual fee (it is currently $450). It was offered by invitation only to American Express customers with at least 2 years of tenure, significant spending, and excellent payment history.
In 1987, American Express introduced the Optima card, their first credit card product. Year 1987 ( MCMLXXXVII) was a Common year starting on Thursday (link displays 1987 Gregorian calendar) A credit card is part of a system of Payments named after the small Plastic card issued to users of the system Previously, all American Express cards had to be paid in full each month, but Optima allowed customers to carry a balance (the charge cards also now allow extended payment options on qualifying charges based on credit availability). Although Optima is no longer heavily promoted, Optima and Optima Platinum cards are still available on the American Express website. Today American Express offers a wide range of other credit card products including co-branded cards like the JetBlue Card and the Starwood Preferred Guest Card, as well as other credit cards promoting customer rewards like the Blue from American Express Card and the Blue Cash Rebate Card.
In 1994, the Optima True Grace card was introduced. Year 1994 ( MCMXCIV) was a Common year starting on Saturday (link will display full 1994 Gregorian calendar) The card was unique in that it offered a grace period on all purchases whether a balance was carried on the card or not (as opposed to traditional revolving credit cards which charge interest on new purchases if so much as $1 was carried over. A grace period is a period of time past the deadline for fulfilling an obligation during which a penalty that would be imposed for being late is waived ) The card was discontinued a few years later; however, the currently-available One from American Express card offers a similar feature called "Interest Protection. "
In 1999, American Express introduced the Centurion Card which is often referred to as the "black card," catering to an even more affluent and elite customer segment. Year 1999 ( MCMXCIX) was a Common year starting on Friday (link will display full 1999 Gregorian calendar) The Centurion Card, popularly known as the Black Card, is a Charge card issued by American Express. The card charged a $1,000 annual fee at the time of its introduction (today, it is $2,500 with an additional one-time initiation fee of $5000) and offered (and continues to offer) a variety of exclusive benefits. There have always been rumors of a super-exclusive card that gives American Express' richest and most powerful customers special perks. It was this rumor that caused Amex to profit off the word-of-mouth and sparked the launch of Centurion. [8]
The company made another addition to its products in 1999 by introducing Blue from American Express, which quickly became a popular card among young adults due to an appealing marketing campaign directed towards a youthful demographic. Based on a successful product for the European market, Blue had no annual fee, a rewards program, and a multi-functional onboard chip. Loyalty programs are structured marketing efforts that reward and therefore encourage loyal buying behaviour — behaviour which is potentially of benefit to the firm A cashback version, "Blue Cash", quickly followed. When accepting payment by Credit card, merchants typically pay a percentage of the transaction amount in commission to their bank or merchant services provider
American Express also launched an exclusive agreement with Costco in 1999, replacing an earlier agreement with Discover Card. Costco Wholesale Corporation ( is the largest membership Warehouse club chain in the world based on sales volume headquartered in Issaquah Washington, The Discover Card is a major Credit card, issued primarily in the United States. Under the agreement, American Express cards replaced Discover as the only credit/charge card accepted at the warehouse club in the US, and American Express became the first and only credit/charge card accepted at Costco's locations outside the US. A warehouse club is a Retail store, usually selling a wide variety of Merchandise, in which customers pay annual membership fees in order to shop To introduce Costco members to American Express, a no-annual-fee co-branded cashback credit card was also introduced. When accepting payment by Credit card, merchants typically pay a percentage of the transaction amount in commission to their bank or merchant services provider An added benefit of the agreement for the Costco member is the annual Costco membership fee is billed the American Express card. The agreement was highly successful and was renewed in 2004 for an additional 10 years.
As of 2005, the US Centurion card has a $2500 annual fee, while other American Express cards range between no annual fee (for Blue and many other consumer and business cards) and a $450 annual fee (for the Platinum Card. Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. ) Annual fees for the Green card start at $95, while Gold card annual fees start at $125.
In 2005, American Express introduced Clear, advertised as the first credit card with no fees of any kind. It also incorporates the ExpressPay technology premiered with the Blue card. Newer American Express Credit cards come with a feature known as ExpressPay. Also in 2005, American Express introduced One, a credit card with a "Savings Accelerator Plan" that contributes 1% of eligible purchases into an FDIC-insured High-Yield Savings Account. The Federal Deposit Insurance Corporation ( FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933 Explicit deposit insurance is a measure introduced by Policy makers in many Countries to protect deposits in full or in part in the event of a "run" Savings accounts are accounts maintained by retail Financial institutions that pay Interest but can not be used directly as Money (by for example Other cards introduced in 2005 included "The Knot" and "The Nest" Credit Cards from American Express, co-branded cards developed with the wedding planning website theknot. com. They have also introduced City Reward Cards that earn INSIDE Rewards points to eat, drink, and play at New York, Chicago and LA hot spots.
Also in 2005, American Express introduced ExpressPay, a MasterCard PayPass clone, based on a wireless RFID payment method, that requires a card to simply be waved in front of a special reader and not swiped. Newer American Express Credit cards come with a feature known as ExpressPay. MasterCard Worldwide ( is a multinational corporation based in Purchase, New York, USA. Radio-frequency identification ( RFID) is an automatic identification method relying on storing and remotely retrieving data using devices called RFID tags or This technology replaced the smart chip on the Blue card. Many US merchant and restaurant partners including 7-Eleven, CVS/pharmacy, McDonald's, Regal Entertainment Group, and Ritz Camera, now offer ExpressPay at most or all of their locations. 7-Eleven is a worldwide chain of Convenience stores It is since March 2007 the largest chain store in any category beating McDonald's by 1000 stores CVS/pharmacy (commonly called CVS) is a Pharmacy and Convenience store chain in the United States. Regal Entertainment Group ( is the largest Movie theatre chain in North America, operating 6423 screens in 529 locations in 41 U Beltsville Maryland -based Ritz Camera Centers is the largest specialty camera and photofinishing retailer in the United States The technology was tested on the ski bus from Salt Lake City to local resorts. Salt Lake City is the Capital and the most populous city of the U
In 2006, the UK division of American Express licensed the Product Red brand and began to issue a Red Card. Product Red, styled as (PRODUCTRED, is a Brand licensed to partner companies such as The American Express Red is an American Express Credit card which has been launched for the first time in the United Kingdom With each card member purchase the company contributes to good causes through The Global Fund to help African women and children suffering from HIV/AIDS, malaria and other diseases. The Global Fund to Fight AIDS Tuberculosis and Malaria (often commonly called "The Global Fund" was established in January 2002 to dramatically increase global
In 2007, American Express again raised the annual fee for their American Platinum charge cards, moving the Personal cards fee to $450, and the Business division to $395. With the increase, customers now receive four complimentary companion coach tickets per calendar year. Additionally, a long rumored "relationship" fee of $5,000 to establish a Centurion card was added. The annual fee of $2,500 remains the same, however. In late 2007, they announced their new Plum Card as the latest addition to their card line. The Plum Card is a charge card issued by American Express ' OPEN small business network in 2007 The card provides a 2% early pay discount or up to two months defer pay on purchases. However, the 2% discount is only available for billing periods where you spend at least $5,000. The first 10,000 cards will be issued to members on December 16. [9]
Features: Some versions of the card include various features such as Damage waiver on cars rented with the card, and accident insurance during travel bought with the card. Damage Waiver, or as it is normally referred to collision damage waiver (CDW is an optional Collision Coverage available while renting a vehicle
The "Boston Fee Party"
From the early 1980s until the early 1990s, American Express was known for cutting its merchant fees (also known as a "discount rate") to merchants and restaurants if they accepted only American Express and no other credit or charge cards. Interchange fee is a term used in the payment card industry to describe a fee that a merchant’s bank (the “acquiring bank” pays a customer’s bank (the “issuing bank” when This prompted competitors such as Visa and MasterCard to cry foul for a while as the tactics "locked" restaurants into American Express.
However, in 1991, several restaurants in Boston started accepting and encouraging the use of Visa and MasterCard because of their far lower fees as compared to American Express's fees at the time (which were about 4% for each transaction versus around 1. Year 1991 ( MCMXCI) was a Common year starting on Tuesday (link will display full calendar of the Gregorian Calendar. 2% at the time for Visa and MasterCard). A few even stopped accepting American Express credit and charge cards. The revolt, known as the "Boston Fee Party" in reference to the Boston Tea Party, quickly spread nationwide to over 250 restaurants across the US, including restaurants in other cities such as New York City, Chicago, and Los Angeles. The Boston Tea Party was an act of Direct action protest by the American colonists against the British Government in which they destroyed many The City of New York Chicago (ʃɪˈkɑːgoʊ is the largest City by population in the state of Illinois and the American Midwest of the United States. Los Angeles (lɑˈsændʒələs los ˈaŋxeles in Spanish) is the largest City in the state of California and the American West In response, American Express decided to reduce its discount rate gradually to compete more effectively and add new merchants to its network such as supermarkets and drugstores. Many elements of the exclusive acceptance program were also phased out so American Express could effectively encourage businesses to add American Express cards to their existing list of payment options.
Currently, American Express' average US merchant rate is about 2. 5%, while the average Visa/MasterCard credit card US merchant rate is about 2% (Visa/MasterCard signature debit cards are at 1. A debit card (also known as a bank card) is a plastic card which provides an alternative payment method to Cash when making purchases 7%). Some merchant sectors, such as quick-service restaurants including McDonald's, have special reduced rates to accommodate business needs and profit margins.
Not all the changes from 1991 have taken wind: A very small number of restaurants in major cities still exclusively accept American Express because the vast majority of their customers primarily use Amex cards. Likewise, Neiman Marcus accepts only American Express and their store card; however, the current exclusive agreement with American Express is due to expire soon and may not be renewed as an exclusive agreement. Neiman Marcus is an upscale specialty retail Department store, operated by the Neiman Marcus Group in the United States. Costco also has an exclusivity agreement with American Express; however, Costco's agreement with Amex was the result of a long negotiation process for exclusive acceptance with multiple parties that also included Visa, MasterCard, and Discover. Costco Wholesale Corporation ( is the largest membership Warehouse club chain in the world based on sales volume headquartered in Issaquah Washington,
Financial services history
During the 1980s, American Express embarked on its dream to become a financial services supercompany. In mid-1981 it purchased Shearson Loeb Rhoades Inc the second largest securities firm in the US. In 1984 it purchased the 90-year old Investors Diversified Services, bringing with it a fleet of financial advisors and investment products. Ameriprise Financial Inc ( is a company that offers financial advice and products Also in 1984, American Express acquired the investment banking and trading firm, Lehman Brothers Kuhn Loeb, and added it to the Shearson family, creating Shearson Lehman/American Express. Investment banks profit from companies and governments by raising money through issuing and selling Securities in the Capital markets (both equity and Lehman Brothers Holdings Inc ( (pronounced ˈliːmən was a global financial-services firm prior to its bankruptcy and sale in 2008 In 1988, the Firm acquired E.F. Hutton, forming Shearson Lehman Hutton until 1990, when the Firm's name became Shearson Lehman Brothers. E F Hutton & Co was an American stock brokerage firm founded in 1904 by Edward Francis Hutton, his brother Franklyn Laws Hutton, and When Harvey Golub took the reins in 1993 he negotiated the sale of Shearson's retail brokerage and asset management business to Primerica and in following year, spun-off of the remaining investment banking and institutional businesses as Lehman Brothers Holdings Inc. Primerica Financial Services (PFS is a financial services company and is headquartered in Duluth, Georgia. Lehman Brothers Holdings Inc ( (pronounced ˈliːmən was a global financial-services firm prior to its bankruptcy and sale in 2008
In April 1992, American Express spun off its subsidiary, First Data Corp., in an IPO. Year 1992 ( MCMXCII) was a Leap year starting on Wednesday (link will display full 1992 Gregorian calendar) First Data Corporation is a Payment processing company based in Greenwood Village Colorado. Then, in October 1996, the company distributed the remaining majority of its holdings in First Data Corp. Year 1996 ( MCMXCVI) was a Leap year starting on Monday (link will display full 1996 Gregorian calendar) , reducing its ownership to less than 5%.
In December 2000, American Express agreed to acquire the credit card portfolio of Bank of Hawaii, then a division of Pacific Century Financial Corp. 2000 ( MM) was a Leap year that started on Saturday of the Common Era, in accordance with the Gregorian calendar. Bank of Hawaii, a subsidiary of Bank of Hawaii Corporation ( is a regional commercial Bank headquartered in Honolulu, Hawaii. In January 2006, American Express sold its Bank of Hawaii card portfolio to Bank of America (MBNA). Banc of America Securities Bank of America () is the largest bank by asset and second largest commercial Bank by deposits and Market capitalization in United MBNA Corporation was a bank Holding company and parent company of wholly owned subsidiary MBNA America Bank N Bank of America will issue Visa and American Express cards under the Bank of Hawaii name.
Until 2004, Visa and MasterCard rules prohibited issuers of their cards from issuing American Express cards in the United States. This meant, as a practical matter, that U. S. banks could not issue American Express cards. These rules were struck down as a result of antitrust litigation brought by the U. S. Department of Justice, and are no longer in effect. In January 2004, American Express reached a deal to have its cards issued by a U. S. bank, MBNA America. MBNA Corporation was a bank Holding company and parent company of wholly owned subsidiary MBNA America Bank N Initially decried by MasterCard executives as nothing but an "experiment", these cards were released in October of 2004. MasterCard Worldwide ( is a multinational corporation based in Purchase, New York, USA. Some said that the relationship was going to be threatened by MBNA's merger with Bank of America, a major Visa issuer and original developer of VISA. However, an agreement was reached between American Express and Bank of America on December 21, 2005. Events 69 - The end of the Year of the four emperors: Following Galba, Otho and Vitellius, Vespasian Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. Under the terms of the agreement, Bank of America will own the customer loans and American Express will process the transactions. Also, American Express will dismiss Bank of America from its antitrust litigation against Visa, MasterCard and a number of U. S. banks. Finally, both Bank of America and American Express also said an existing card-issuing partnership between MBNA and American Express will continue after the Bank of America-MBNA merger. The first card from the partnership, the no-annual-fee Bank of America Rewards American Express card, was released on June 30, 2006. Events 350 - Roman usurper Nepotianus, of the Constantinian dynasty, is defeated and killed by troops of the Usurper Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar.
Since then, Citibank, GE Money, and USAA have also started issuing American Express cards. Citibank is a major international Bank, founded in 1812 as the City Bank of New York, later First National City Bank of New York. GE Money is part of GE Capital operating division of General Electric. United Services Automobile Association ( USAA) is a Fortune 500 Citibank currently issues several American Express cards including an American Airlines AAdvantage co-branded card, while GE is currently issuing a co-branded card for Dillard's. American Airlines Inc (AA is a US -based airline and the world's Largest airline in total passenger miles transported and passenger fleet size American Airlines Inc (AA is a US -based airline and the world's Largest airline in total passenger miles transported and passenger fleet size This article is about a Department store chain For The Dillards a Progressive bluegrass band see The Dillards. HSBC Bank USA is currently testing both HSBC-branded and Neiman Marcus co-branded American Express rewards credit cards, with a full rollout scheduled for late 2007 or early 2008. HSBC Bank USA NA, the United States subsidiary of the HSBC Holdings plc, is a bank with its head office in New York City. Neiman Marcus is an upscale specialty retail Department store, operated by the Neiman Marcus Group in the United States. Also, UBS launched its Resource Card program for US Wealth Management clients issuing Visa Signature credit cards and American Express charge cards linked to their customers accounts and employing a single rewards program for the two cards.
In 2005, American Express released the American Express Travelers Cheque Card, a stored-value card that serves the same purposes as a traveler's cheque, but can be used in stores like a credit card. A stored-value card represents Money on deposit with the Issuer, and is similar to a Debit card. A traveler's cheque (also traveller's cheque, travellers cheque, traveler's check, or travelers check) is a preprinted fixed-amount Cheque The card has since been discontinued as of October 31, 2007, due to "changing market conditions". Events 445 BC – Ezra reads the Book of the Law to the Israelites in Jerusalem (see Nehemiah 91 NLTse Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. All cardholders were issued refund checks for the remaining balances.
On 30 September 2005, American Express spun off its American Express Financial Advisors unit as a publicly traded company, Ameriprise Financial, Inc.. Events 1399 - Henry IV is proclaimed King of England. 1744 - France and Spain defeat the Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. Ameriprise Financial Inc ( is a company that offers financial advice and products Due to this, American Express revenues for 2005 are down around $5 billion, however, like-for-like they are up 10. 5% in 2005. Also, on September 30, 2005, RSM McGladrey acquired American Express Tax & Business Services (TBS). Events 1399 - Henry IV is proclaimed King of England. 1744 - France and Spain defeat the Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. RSM McGladrey, Inc is a United States consulting firm specializing in taxes, business management Wealth management, Retirement
Advertising
In 1975, David Ogilvy of Ogilvy & Mather developed the highly successful "Don't Leave Home Without It" ad campaign for American Express Traveler's Cheques, featuring Oscar-award-winning actor Karl Malden. David MacKenzie Ogilvy CBE ( June 23, 1911 – July 21, 1999) was a notable advertising executive Ogilvy & Mather is a preeminent international advertising marketing and public relations agency based in New York City and owned by the WPP Group. An advertising campaign is a series of Advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC Karl Malden (born on March 22, 1912) is an American Actor of Serbian origin known for his expansive manner Karl Malden served as the public face of American Express Travelers Cheques for twenty-five years. His television ads were a combination of suspense, excitement, news, and a compelling call to action. First, you would see a thief stealing money from some poor unsuspecting tourist's wallet or beach bag or hotel room. Then Karl would arrive on the scene looking like the cop he played in the famous television series, Streets of San Francisco. The Streets of San Francisco is a successful 1970s Television Police Drama filmed on location in San Francisco California, He would say, "This could happen to you!" And then the call to action: "Don't let a thief spoil your vacation. Get American Express Travelers Cheques. Don't leave home without them. " After Karl Malden's departure, and the card was promoted over the traveller's cheques, American Express continued to use celebrities. A typical ad for the American Express Card began with a celebrity asking viewers: "Do you know me?" Although he/she gave hints to his/her identity, the star's name was never mentioned except as imprinted on an American Express Card; after which announcer Peter Thomas told viewers how to apply for it. Peter Thomas (born June 28, 1924) is a well known American narrator of Television programs including shows such as ''Nova'' and more Each ad concluded with the celebrity reminding viewers: "Don't Leave Home Without It. " The "Don't Leave Home Without It" slogan was revived in 2005 for the prepaid American Express Travelers Cheque Card.
- The long-running PBS children's TV series, "Sesame Street" parodied the "Do you know me?/Don't Leave Home Without It" ad campaigns with three skits involving a Muppet Character holding a Grown-Up Friend's Hand while crossing the street. The Public Broadcasting Service ( PBS) is a Non-profit Public broadcasting Television service with 354 member TV stations in the Sesame Street is an American educational Children's television series and a pioneer of the contemporary educational television standard combining The Muppets are a group of Puppet characters created by Jim Henson. One skit featured Forgetful Jones (performed by Richard Hunt) with Olivia (Alaina Reed Hall) as his Grown-Up Friend, a second featured Bert and Ernie (Frank Oz and Jim Henson respectively) with Gordon (Roscoe Orman) as their Grown-Up Friend, and the third featured Big Bird (Carroll Spinney) with Bob (Bob McGrath) as his Grown-Up Friend. The following is a list of recurring Muppet, animated and human characters on Sesame Street. There have been a number of people named Richard Hunt: Richard Hunt (artist (born 1951 a Canadian carver and artist Richard Hunt (editor Alaina Reed Hall (born November 10, 1946) is an American actress, best known for her roles as Olivia Gordon's kid sister on Sesame Since 1969 Ernie has been one of the stars of PBS 's long-running children's television show Sesame Street. Frank Oz (born May 25, 1944) is a British-born American Film director, Actor and Puppeteer. For other uses of "Henson" see Henson. James Maury "Jim" Henson (September 24 1936 &ndash May 16 1990 was one of Roscoe Orman (born June 11, 1944, in The Bronx New York) is an American Actor who plays Gordon Robinson on the television Big Bird is a full-body Muppet, featured on the children's television show Sesame Caroll Edwin Spinney, sometimes credited as Carroll Spinney or Ed Spinney (born December 26, 1933) is a Puppeteer most famous for Robert Emmet "Bob" McGrath (born June 13, 1932) is an American singer and actor best known for playing the human character "Bob" on All three skits ended with their names being embossed at the bottom of a card looking like an American Express Card that had a big human left hand in the middle with the words "Grown-Up Friend's Hand" above it, and a voiceover saying "A Grown-Up Friend's Hand. Don't cross the street without it. "
- Another parody was seen on an episode of the CBS game show, "Press Your Luck," when the animated "Whammy Character" would give the "Do you know me?" tag line, followed by the display of an AmEx card-parody, which then had "WHAMMY" typed in on the bottom line of the card. CBS Broadcasting Inc ( CBS) is an American radio and Television network. Press Your Luck was an American television daytime Game show that ran weekdays on CBS from September 19 1983 to September 26 1986 where contestants
- The 1989 movie, Major League also parodied the campaign. Year 1989 ( MCMLXXXIX) was a Common year starting on Sunday (link displays 1989 Gregorian calendar) Major League is a 1989 American Comedy film written and directed by David S In one scene, in which every player is dressed in a tuxedo, the Cleveland Indians tell viewers of the film why every player carries the American Express Card with much of the explanation done one line at a time by players Jake Taylor (Tom Berenger), Eddie Harris (Chelcie Ross), Rick "Wild Thing" Vaughn (Charlie Sheen), Pedro Cerrano (Dennis Haysbert), and Roger Dorn (Corbin Bernsen), and Manager Lou Brown (James Gammon). The Cleveland Indians are a professional baseball team based in Cleveland, Ohio, United States. Tom Berenger (born May 31, 1948) is an Academy Award -nominated and Golden Globe -winning American Actor known mainly for Chelcie Ross (born 26 October 1942) is an American Character actor. Carlos Irwin Estévez (born September 3 1965 better known as Charlie Sheen, is an American actor Dennis Dexter Haysbert (born June 2, 1954) is an American Film and Television Actor. Corbin Dean Bernsen (born September 7, 1954) is an American actor known for his work on television James Gammon (born April 20, 1940) is an American Actor. A Character actor recognizable for his gruff appearance and gravely voice The scene ends with Willie "Mays" Hayes (a tuxedo-clad Wesley Snipes) sliding into home plate in front of the rest of the team, holding up his card and saying to the viewers: "The American Express Card. Wesley Trent Snipes (born July 31, 1962) is an American Actor, Film producer, and Martial artist. Don't steal home without it. "
To this day, American Express continues to use celebrities in their ads. The Adventures of Seinfeld & Superman was a series of short film commercials promoting American Express featuring Jerry Seinfeld as himself and Patrick Some notable examples include a late 1990s ad campaign with comedian Jerry Seinfeld, including the two 2004 webisodes in a series entitled "The Adventures of Seinfeld and Superman. Jerome Allen "Jerry" Seinfeld (born on April 29 1954 in Brooklyn, New York) is an American comedian actor and writer A webisode is an episode of a Television show that airs initially as an Internet download or stream as opposed to first airing on broadcast or Cable The Adventures of Seinfeld & Superman was a series of short film commercials promoting American Express featuring Jerry Seinfeld as himself and Patrick " In late 2004, American Express launched the "My life. My card. " brand campaign (also by Ogilvy & Mather) featuring famous American Express cardmembers talking about their life. The ads have featured actors Kate Winslet, Robert De Niro, Ken Watanabe and Tina Fey, Duke University basketball coach Mike Krzyzewski, fashion designer Collette Dinnigan, comedian and talk show hostess Ellen DeGeneres, golfer Tiger Woods, professional snowboarder Shaun White, tennis pros Venus Williams and Andy Roddick, Chelsea Football Club manager José Mourinho, and film directors Martin Scorsese, Wes Anderson, M. Night Shyamalan and most recently singer Beyonce Knowles and supermodel Gisele Bündchen. Kate Elizabeth Winslet (born 5 October 1975 is a five-time Academy Award -nominated Golden Globe -nominated Emmy Award -nominated Robert Mario De Niro Jr (born August 17 1943 is a two-time Academy Award -winning American Film Actor, director and producer is an Academy Award -nominated Japanese stage, Film, and Television Actor. Elizabeth Stamatina "Tina" Fey (born May 18 1970 is a Golden Globe - five time Emmy - and SAG Award -winning American Writer Duke University is a private Research University located in Durham, North Carolina, United States. Michael William Krzyzewski ( Polish: Krzyżewski /kʂɨˈʐɛ(fski/ in American English pronounced "Sha- chef -skee" born February A talk show ( American) or chat show ( Global) is a Television or Radio program where one person or group of people come together to Ellen Lee DeGeneres (born January 26 1958 is an eleven time Emmy Award -winning American stand-up comedian, Television host and actress Background and family Woods was born in Cypress, California to Earl (1932-2006 and Kultida (Tida Woods Shaun Roger White (born September 3, 1986 in Carlsbad, California) is an American athlete Tennis is a sport played between two players ( singles) or between two teams of two players each ( doubles) Venus Ebony Starr Williams (born June 17 1980 is a former World No Andrew Stephen "Andy" Roddick (born August 30 1982 is an American professional Tennis player and a former World No José Mário dos Santos Félix Mourinho, GOIH (ʒuˈzɛ moˈɾiɲu (born 26 January 1963 in Setúbal) is a Portuguese A film director, or filmmaker, is a person who directs the making of a Film. Wesley Wales Anderson (born May 1, 1969) is an American director, writer, Actor, and producer of features Manoj Nelliyattu Shyamalan (ˈʃaməˈlan ( Malayalam: മനോജ് നെല്ലിയട്ടു ശ്യാമളന് Tamil: மனோஜ் நெல்லியட்டு Beyoncé Giselle Knowles (born September 4 1981 commonly known as Beyoncé (biːˈɑn Gisele Caroline Bündchen (born July 20 1980 is a Brazilian model. In 2007, a two-minute black-and-white ad entitled "Animals" starring Ellen DeGeneres won the Emmy Award for Outstanding Commercial. Ellen Lee DeGeneres (born January 26 1958 is an eleven time Emmy Award -winning American stand-up comedian, Television host and actress
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