SEARCH

Entries in American Express (6)

Friday
Jan112013

American Express to Cut 5,400 Jobs in 2013

Justin Sullivan/Getty Images(NEW YORK) -- American Express on Thursday announced it's cutting thousands of jobs this year, mostly in its travel business.

The move comes as more American Express customers opt to use travel sites like Expedia.com and Orbitz.com to book their vacations.

American Express plans to cut approximately 5,400 jobs, which amounts to about 8.5 percent of its workforce.

Copyright 2013 ABC News Radio

Monday
Oct082012

Walmart, Amex Roll Out New Prepaid Card

Bluebird by American Express and Walmart(NEW YORK) -- Walmart and American Express announced Monday morning that they would make available a refillable prepaid card for consumers tired of banking fees.

The company said the card is an “alternative to debit and checking accounts” and will be available next week online or in more than 4,000 Walmart stores. There is no fee to set up the card online at Bluebird.com but there is a $5 fee for an account set up kit at Walmart stores with any amount between $1 and $500 for immediate use.

Gerri Detweiler, credit card expert from Credit.com, said the card combines the appeal of the American Express brand, “which is generally seen as an upscale card,” and the wide distribution available through Walmart.

“Prepaid cards have been trying to establish themselves as a smart alternative to increasingly expensive bank accounts and this program may help them do that,” Detweiler said.

Banks’ overdraft fee revenue increased 2.1 percent to $31.5 billion in the last fiscal year, according to financial data firm Moebs Services. The median overdraft fee rose to $29 from $28 the prior year.

Bluebird does not require a credit check but only adults 18 and older can sign up for a card.

There are no monthly or annual fees. There is, however, a $2 fee for a deposit from a debit card. Users can also access money through 22,000 MoneyPass ATMs across the country for free; otherwise,  there is a $2 fee for using other network ATMs; third-party network fees may apply.

Detweiler said the fees on this card are “very low,” which will be appealing for those tired of bank overdraft fees, online shopping or someone who wants to better manage their budget.

It is likely Walmart and American Express would make revenue from swipe fees if a consumer uses the card at a retailer, she said.

The card’s benefits include fraud protection in case it is lost or stolen in which case the card can be replaced at no charge.

Copyright 2012 ABC News Radio

Monday
Oct012012

American Express Will Reimburse $85 Million to About 250,000 Customers

Justin Sullivan/Getty Images(WASHINGTON) -- The Consumer Financial Protection Agency (CFPB) has announced yet another enforcement action.  American Express will reimburse $85 million to about 250,000 customers to resolve accusations that the company violated federal law in its marketing.

CFPB announced the decision after a federal investigation found that at various periods between 2003 and spring 2012 American Express had violated consumer protection laws "at every stage of the consumer experience," according to a CFPB release.

“Several American Express companies violated consumer protection laws and those laws were violated at all stages of the game -- from the moment a consumer shopped for a card to the moment the consumer got a phone call about long overdue debt,” CFPB Director Richard Cordray said in Monday. “Today’s orders require the American Express companies to fully refund about $85 million to consumers and it requires them to make specific changes in their business practices. The American Express companies will identify the harmed customers, notify them, and make sure they get back their money.”

Customers owed in the action are expected to receive their payments by March 15, 2012.
 
This action is similar others against Capital One and Discover Financial, announced earlier this year. Discover agreed to pay $200 million to more than 3.5 million cardholders. Capital One agreed to refund about $150 million to more than two million customers.

Copyright 2012 ABC News Radio

Tuesday
Apr032012

American Express Pulls Gift Cards from NJ over Expiration Law

Justin Sullivan/Getty Images(NEW YORK) -- American Express is no longer selling gift cards in New Jersey because a unique law allows the state to claim the money from unspent gift cards after two years. 

There are similar laws elsewhere, but only New Jersey wants merchants to collect zip codes at the point of sale, and American Express says it is “not able to ensure compliance with that part of the law.”  The measure would classify gift cards unused after two years as “abandoned.”

When it first proposed the law a couple years ago, the Christie administration said there may be $79 million worth of unused gift cards, money orders and travelers checks languishing in drawers and wallets.

The law is currently the subject of litigation so it hasn’t been enacted. And retailers have been fighting it.  

John Holub at the N.J. Retail Merchant Association says gift cards never expire: “They’re as good as cash and they’re good forever.” 

If a customer comes into a store with a gift card after two years, he explains, the merchant would honor it and then apply to the state to get the money -- an administrative hassle.

Once the zip code portion of the law is set, Holub expects many retailers to follow in American Express' footsteps.

“You’re going to see a lot of other major retail brands pull their gift cards from New Jersey,” he said.

The law applies to retailers that sell more than $250,000 worth of gifts cards a year.

Copyright 2012 ABC News Radio

Wednesday
Aug242011

Working on Jobs Plan, President Obama Speaks to Amex, GE CEOs

SAUL LOEB/AFP/Getty Images(WASHINGTON) -- On a day that the Congressional Budget Office predicted slow economic growth, and an unemployment rate still over 8 percent by the end of next year, the White House says President Obama continues to work on his new jobs plan during his Martha’s Vineyard vacation. And the president is taking some advice.

On Wednesday, Obama talked to his friend and GE CEO Jeffrey Immelt and American Express CEO Ken Chenault, who both serve on the president’s jobs council. Some of their ideas included finding ways to increase the number of college educated engineers, and putting construction workers to work retrofitting old buildings to make them more energy efficient.

Stimulus may be a dirty word in Washington, but it will be part of the president’s new jobs plan.

“We're going to have some additional ideas that should have some bipartisan support,” principal deputy press secretary Josh Earnest told the traveling White House Press corps in Martha’s Vineyard. But that’s exactly what the White House has said for months now, only to have Republicans refuse to play ball.

“And the president's articulated his frustration about that.  He's pointed out that the American people voted for divided government, but they didn't vote for dysfunctional government,” Earnest said.

The president was briefed Wednesday by Brian Deese of his economic team. Earnest says that team is still working on the nuts and bolts of the plan.

The White House says the president’s plan will have “aspects that will be new” including efforts to cut more than the $1.5 trillion the Congressional “Super-Committee” has been tasked with cutting. The speech is still planned for “shortly after” Labor Day.

Copyright 2011 ABC News Radio

Wednesday
Jun292011

Got Points? AmEx Lets Cardholders Buy Facebook Ads

PRNewsFoto/American Express(NEW YORK) -- There's something new you can buy with all those credit card points: Facebook ads.

American Express and Facebook introduced a new plan for AmEx customers to spend their membership rewards points on online ads. The plan is primarily for small business owners, but it's open to millions of other customers, too.

"With hundreds of thousands of small businesses advertising on Facebook, this latest effort by American Express effectively takes advantage of our platform by providing these business owners with a new and convenient way to pay for Facebook advertising," said David Fischer, Facebook's vice president of advertising and global operations.

Copyright 2011 ABC News Radio







ABC News Radio