What is an American Express (Amex) credit card? What are the benefits of Amex card?

You may have seen the American Express logo on various billboards, newspaper ads, and shops or restaurants. Surely you have ever wondered what this Amex is! Or what are the benefits of Amex card? In this post you will learn more about American Express (Amex) credit card and the benefits of Amex card.

What is an American Express card?

The American Express card is a type of electronic payment card that operates under the brand name of the public trading service company American Express. It is also known as Amex for short. This company issues and processes prepaid, debit and credit cards . The American Express Card is now available to individuals, businesses and corporate consumers in many countries around the world.

American Express or Amex is another network similar to the MasterCard or Visa payment network. Visa and MasterCard are widely used in Bangladesh. You can get Visa or MasterCard network cards from almost all commercial banks. But in Bangladesh, American Express card is available only from Citibank. From there you can get American Express credit cards and Citimax debit cards.

What is an American Express (Amex) credit card?  What are the benefits of Amex card?
How does Amex card work?

American Express Company issues American Express Card or Amex Card. It is processed on the American Express network. American Express is one of the few financial services capable of issuing and processing payment cards. Amex has partner banks or financial institutions in different countries. For example, Citi Bank is the partner bank of American Express in Bangladesh.

American Express is a publicly traded company in the Financial Services Department. It can be used to borrow credit as well as enjoy network processing services. In addition to credit product issues, the company also offers a variety of charge cards and credit cards.

Types of American Express cards

American Express debit cards and prepaid debit cards are offered to a variety of retail and commercial customers. American Express is also one of the top charge card providers in the world.

American Express Credit Cards and Charges Cards follow certain restrictions. First of all there is no chance of getting an Amex card without a good credit score. This means that if the credit score is low then Amex card cannot be taken.

American Express credit and charge cards offer a variety of benefits, such as reward points, travel parks, and more. In case of various purchases, cashback is given on these cards.

American Express also offers a variety of branded prepaid debit cards, including a variety of gift cards and reloadable payment cards.

In addition to the cards mentioned above, American Express issues a variety of cards to customers. For example, in the United States, Wells Fargo issues American Express cards, while in Mexico, it offers Banco Sandtender and similar cards. In Bangladesh, Amex offers dedicated branded credit cards for various institutions including Dhaka University.

American Express encourages users to use their cards through partnerships with various companies. For example, Delta Air Lines offers redeemable flyer miles for use in Delta. Again Hilton Hotel and Co-branded cards are provided.

Advantages of American Express Card

  • The main attraction of American Express is its lifestyle facilities. There are free lounges and meals for Amex customers at various airports.
  • Exclusive discount is available if you shop at different shops and pay with Amex card.
  • Reward points are available for transactions with Amex cards which can be used to pay various card fees and even to pay card bills.
  • There are no specific spending limits or much higher credit limits for using Green, Gold and Platinum Amex cards across the country.
  • Amex is well known for providing high quality customer service.
  • Amex Cards offers a variety of offers, including cashback on rewards, parks and purchases.
  • It is mandatory to pay Ames charge card balance every month, which basically prevents high interest charges.

Disadvantages of the American Express card

  • Many merchants are reluctant to accept Amex cards because the transaction fee is higher than other cards.
  • Amex cards cannot be taken without a high credit score.
  • Amex card annual fees can be much higher.
  • There is no chance of spending extra money in the next month without paying the extra money used every month.
  • Amex's Merchant is relatively low compared to other cards in the small or medium range.

American Express fees and charges

If you have an American Express credit card, it will have various annual fees and charges. However, this fee depends on the type of card. The annual card fee can be Rs.500 or Rs.25,000. It will depend on the category of your card. In addition VAT / surcharge may be applicable on annual SMS fee and such charges.

For example, the annual fee for an Amex Green Blue credit card will be 1500 to 2000 rupees. The annual fee for Amex Gold Credit Card will be 5000 rupees. The annual fee for American Express Gold credit card is 25000 rupees. VAT will have to be paid on these amounts again.

Amex credit cards typically have lower annual fees for cards with lower credit limits and lower reward points. You need to know the exact fee of your specific Amex card by calling the helpline of your issuing bank.

The bulk of American Express's profits come from transaction fees. Merchants get a variety of benefits when offered as an American Express payment option. Considering these advantages, merchants do not compromise on paying more transaction fees to American Express.

American Express is the processor and issuer of American Express transactions. To work on the Bank American Express processing network suggested by the merchant, the same network must be supported. American Express also provides authentication and approval of the transaction.

Merchants pay American Express a small fee for processing network services, which is basically a fraction of the cost mentioned in each transaction. American Express has a good reputation as a processor and high-quality lender.

What is your opinion about Amex card? Are you an Amex user? Let us know in the comments section.

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