amex loss

northernstar007

TadleyBaggie said:

northernstar007 said:

i didnt get the chance asking for it over 3 months, i mentioned that i always pay my bill off in full as to sweeten them to give me a 3-6 month deal, but waste of time lol

They make the least money from the people that pay off in full every month, so not really that sweet for them.

but a fair bit off merchandise fees and my £25 yearly fee

[Deleted User]

northernstar007 said:

TadleyBaggie said:

northernstar007 said:

i didnt get the chance asking for it over 3 months, i mentioned that i always pay my bill off in full as to sweeten them to give me a 3-6 month deal, but waste of time lol

They make the least money from the people that pay off in full every month, so not really that sweet for them.

but a fair bit off merchandise fees and my £25 yearly fee

Merchant fees. 

Unless they're selling Amex branded t-shirts and key rings.

northernstar007

ok i will keep everything in good old english, what they make in credit card fees from the company that is selling the tv to me and to joe the public,

wow a simple comment and get the internet on your back, wont bother on here anymore, some right pita 

penners324

This post is developing into the most replies to an irrelevant post category 

JohnnyB70

northernstar007 said:

JohnnyB70 said:

If you are going to pay it off straight away then you don’t pay interest.

Or were you telling them that you pay it off every month while intending not to?

i didnt get the chance asking for it over 3 months, i mentioned that i always pay my bill off in full as to sweeten them to give me a 3-6 month deal, but waste of time lol

So given that you didn’t intend to pay this off straight away why mention it?

dr_adidas01

TadleyBaggie said:

northernstar007 said:

i didnt get the chance asking for it over 3 months, i mentioned that i always pay my bill off in full as to sweeten them to give me a 3-6 month deal, but waste of time lol

They make the least money from the people that pay off in full every month, so not really that sweet for them.

Amex target market is people who pay in full, there not that keen on customers who don’t. 

This myth that customers who pay in full don’t make them money isn’t true. 

Amex make a hell of a lot of money from merchant fees more so than MasterCard and Visa do. Hence why Amex can be generous with there cash-back cards and reward points offerings. 

born_again

northernstar007 said:

amex are offering 0% in the usa , and i have the funds to pay in cash, 0% is offered on retailers site which i will get, also have other 0% cards if req
the same tv is offered at currys at the same lowest price, i just noticed amex is also offering 5% cash back on any item over £100 at currys for 3 more days which is very tempting
being honest i mainly watch the tv for my fav sport football
now the season is drawing to an end i may just hold on till aug when it kicks off and see whats about then with the same model i am after

We are not in the US. Which is a whole different marketplace.

WillPS

dr_adidas01 said:

TadleyBaggie said:

northernstar007 said:

i didnt get the chance asking for it over 3 months, i mentioned that i always pay my bill off in full as to sweeten them to give me a 3-6 month deal, but waste of time lol

They make the least money from the people that pay off in full every month, so not really that sweet for them.

Amex target market is people who pay in full, there not that keen on customers who don’t. 

This myth that customers who pay in full don’t make them money isn’t true. 

Amex make a hell of a lot of money from merchant fees more so than MasterCard and Visa do. Hence why Amex can be generous with there cash-back cards and reward points offerings. 

Amex are subject to the interchange cap on co-branded cards (BA, Nectar, Marriott, Amazon, Vitality etc), the same as any Visa/Mastercard. Unlike a typical Visa/Mastercard Amex do keep the entirety of that interchange fee though.

All of their other products are not subject to the interchange fee cap - which is why they are marketing their Membership Rewards, Cashback, Gold and Platinum products so heavily. Interestingly though the most generous products in terms of ongoing rewards are co-brand ones - some of this could be attributable to the annual fee and the brand in question selling Amex the loyalty points at a discount (although in the case of the free BA card at least, that is not the case, Amex will be paying ~1p for each Avios and certainly won't make more than 0.3p from interchange).

I don't think it's a fact they're not keen on customers not paying their balance in full either - evidence to the contrary is the fact they moved their flagship Gold product from being a charge card to a credit card, as well as the previously mentioned 0% purchase offers in the not distant past. In common with all prime lenders, they are not interested in customers who pose a higher risk of defaulting.