What Is American Express?

Customers and organizations may use American Express prepaid, credit, and charge cards to make payments. American Express not only issues cards, but it also handles transactions using those cards, as well as those issued by other companies.

American Express: An Explanation with an Example

It is via American Express that prepaid, gift, credit, and charge cards are issued and processed to individuals as well as small, medium, and large organizations worldwide.

American Express cards are accepted by businesses across the globe, much as Visa, Mastercard, and Discover. Because it is both a card issuer and an acquiring bank, American Express earns money from both its cardholders and the companies that accept it.

• American Express: Amex

The Platinum Card from American Express, the Blue Cash Everyday Card from American Express, and the Delta Skymiles Blue Card from American Express are just a few of the credit cards processed by American Express.

What is the Process of American Express?

Aside from credit and charge cards, American Express also provides merchant services and manages a card network.

An industry study by Nilson in February 2022 found that American Express cards are accepted at 12.2 million establishments nationwide. Discover is accepted by 12.2 million companies, whilst Visa and Mastercard are accepted by 12.2 million businesses.

According to a December 2021 Nilson Report, Visa and Mastercard have a stronger payment footprint, with acceptance at 80 million firms worldwide. At 61 million companies, Discover, which also issues and processes its own credit cards, is widely accepted. More than 60 million companies across the world accept American Express.

With a charge card, there are no predetermined spending limitations and no partial payments are permitted.

Business Units of American Express

The process of issuing a credit card

Consumers and companies alike may choose from a wide range of American Express cards. The company’s card products are designed to entice new users by offering rewards, bonuses, and experiences. As an example, some cards provide cash back and loyalty benefits, access to lounges at the airport, and travel insurance coverage.

Acquisition by the Merchant

Establishing a merchant account with American Express is the first step in taking Amex credit cards in your business. Additionally, American Express collaborates with other payment processors and acquirers to make its cards more widely available.

The card game industry

In order to provide its own credit cards, American Express collaborates with other banks and financial institutions, licensing the brand to do so. For example, its partners in more than 103 countries are able to take payments in their native currency by launching credit programs. 

Partnerships for the Long Term

Additional advantages and services are provided by American Express in conjunction with a variety of business partners. Customers benefit from co-branded credit card programs, extended reward redemption choices, or other advantages provided by American Express via its partnerships. Current collaborations include:

• The Delta Air Lines
• International Hotel Chain Marriott
• Hilton
• The British Airways
• Amazon
• PayPal

American Express Credit Cards

The following are the major types of credit and charge cards offered by American Express to individuals, businesses, and corporations.

a Refund in Money

Between 1% and 6% is earned on American Express cash-back consumer credit cards. A statement credit may be obtained by redeeming cash incentives. Annual fees are associated with higher-earning rewards cards.

Travel

You may redeem your credits for travel, flights, and hotel stays by using a travel credit card or charge card. It is possible to earn points in a brand’s loyalty program by using co-branded travel credit cards. When Delta SkyMiles American Express cardholders use their cards to make transactions, they earn miles that may be used for Delta flights and upgrades. As much as $695 might be charged for an American Express travel credit card’s annual fee; greater fees come with additional points and benefits.

Business

Businesses of all sizes may take advantage of the 14 credit and charge cards offered by American Express. Cash-back, travel, hotel, and airline credit cards, as well as co-branded cards like Lowe’s and Amazon.com, are all possibilities for business cards.

Additionally, American Express cards with a broader range of general-purpose use might come with additional advantages and protections for travelers, such as airport screening credit, trip delay and cancellation protections, and rental vehicle loss and damage waiver insurance.

The Most Important Things to Remember

• Consumers and companies alike may use American Express credit and charge cards to make purchases.
• The credit card issuing and processing network for American Express cards is American Express.
• In order to earn money, AmEx charges companies that accept the card processing fees.
• Rewards and other incentives are available to cardholders.