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Forums Payment cards American Express Dear Amex, are you on glue??? Reply To: Dear Amex, are you on glue???

Peter K 574 posts

I feel JDB is missing something crucial here. I’ve read his points for a while and couldn’t put my finger on the underlying reason why he’s wrong with Amex’s business model. Maybe this is what it is:

Amex needs to remain relevant. Not just to card holders but, more importantly in some ways, to retailers. That’s one reason why they do shop small…to convince smaller retailers that it’s worth accepting amex.
Those chasing SUBs put large amounts through their cards, increasing/inflating amex use in the economy to a large extent, so helping amex convince retailers decide it’s worth accepting them.

Basically, it’s amex Manufacturing Spend. So what if the SUBs don’t allow them to make (much) money *on those cards*. The spend pushed through keeps the door open to make money from the spend of loyal ones like JDB who keep the same card long term.

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