American Express Eliminates Another 4,000 Jobs

By Joe Taylor Jr., CardRatings.com Reporter

American Express has shifted from issuing Plum Cards to issuing pink slips. Company leaders recently unveiled a plan to eliminate 4,000 jobs as part of an effort to shave nearly two billion dollars from its budget. According to its most recent SEC filings, the job reductions will affect about six percent of the company's global workforce, along with an unspecified number of contractors and consultants.

In a press release issued on May 18, American Express Chairman and CEO Kenneth I. Chenault said that the company remains "very cautious about the economic outlook and is therefore moving forward with additional reengineering efforts to help further reduce our operating costs." Industry analysts cheered the decision as a proactive response to new credit card laws, slowing small business spending, and double-digit charge-off percentages.

According to staffing strategists, companies like Discover and Bank of America have stalled hiring for open positions and leveraged attrition to survive similar cutbacks. However, analysts note that American Express may already have used those techniques during last year's elimination of over 7,000 positions. Some investors fear that the latest round of job losses may cut at the heart of the customer service operation that has been the American Express tradition for over 150 years.

How do you feel about American Express cutting 4,000 jobs? We welcome you to share your ideas on our active credit card forum.

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Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.

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CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

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Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thank you for your interest!

Entrepreneurs Learn Credit Card Strategies at Speed Coaching Events

By Joe Taylor Jr., CardRatings.com Reporter

Starting a new company in an economic recession often requires three things: a great idea, a generous small business credit card, and solid advice. Officials at American Express OPEN hope to connect entrepreneurs with all three at a series of seven live events throughout the spring and summer.

The "Small Business Speed Coaching Test Drive" offers attendees the chance to spend a half-hour with experienced volunteer business advisors from SCORE. During one-on-one sessions, advisors discuss crucial topics, such as:

• Managing small business credit card debt


• Building strong vendor relationships


• Recruiting and retaining key staff


• Monitoring small business finances

With financial support from American Express OPEN, live speed coaching events are planned for California, Utah, New York, Oregon, Florida, Illinois, and the District of Columbia. Entrepreneurs can register for free small business coaching at events or at one of 370 local chapters by visiting SCORE.org.

You can compare business credit cards on CardRatings.com.

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Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.

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CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thank you for your interest!

Got an American Express Credit Card? Decide How to Spend $5 Million!

By Curtis Arnold, Founder of CardRatings.com

American Express has recently launched The Members Project, where it will contribute $1 for every AMEX cardholder who registers for the project by August 5, 2007 – up to a total of $5 million. Registration is free, and as best as I can tell, there are no costs for participants.

If you’re wondering what American Express plans to do with that $5 million, it’s too soon to tell, except that the goal is to let cardholders choose how to spend it on “something good for our world.” Of course, the free publicity American Express is getting for The Members Project is “priceless,” as MasterCard would say, but anything that will get more money out there to help people in need is a real plus in my book. So if you’ve already got an AMEX card or are thinking of getting one, won’t it be fun to put all thoughts of credit card issuers fees and unconscionable profits out of your mind for a bit and help spend this $5 million?!

Right now, folks who have signed up for The Members Project are coming up with ideas on how the money should be used, rating each other’s suggestions, and participating in online discussions. Projects being discussed so far fall into categories like arts and entertainment, community development, the environment and wildlife, education, health and fitness, etc. Members are encouraged to submit up to five proposed projects until the June 17, 2007 deadline.

After that, AMEX’s advisory committee will choose the top 50 projects, based on “innovation, achievability, and the ability to make a broad, positive impact.” Then, starting on July 3, 2007, members get to vote via elimination rounds on which project will get the money. First, it’ll go from the top 50 to the top 25 … then to the top 5 … and then to the one grand prize winner, which will be announced on August 7, 2007. Members can vote once in each round. (It’s hard not to wonder if we’d be better off holding our Presidential elections this way!)

Click here for the fine print, which basically says that you have to be a legal US resident, at least 18, and “the holder in good standing of an American Express Card.” Got one? Join The Members Project today, and let us and others know about any great ideas you see there that will make the world a better place.

This article was originally published on CreditBloggers.com by Curtis Arnold, a nationally recognized consumer educator and advocate. Curtis has been educating consumers about credit cards since 1998. He is regularly interviewed and quoted by respected members of the national press regarding consumer credit issues. Curtis is currently working on publishing a book about credit card usage with Pearson/Prentice Hall- more details forthcoming!

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CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

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Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thanks for your interest!

Prestige Credit Cards: Not Just for the Rich and Famous Anymore

By Curtis Arnold, Founder of CardRatings.com


The first and considered by many to be the most exclusive prestige credit card is the American Express Centurion, reportedly for people who charge at least $250,000 a year. Available by invitation only, the card is so exclusive, it's hard to get reliable information about it!

What's clear is that Centurion is for wealthy people who travel frequently, shop at high end stores, and are used to receiving VIP treatment. Stories about the rich and famous who use Centurion abound. There are free companion airline tickets, free upgrades to first class, special deals with hotels, personal shoppers at stores like Saks and Gucci, travel planning and concierge services, as well as bonuses and rewards galore. Starting this May, there's going to be a $5,000 initiation fee … to be followed by annual fees of $2,500. (Curious to know what cardholders have to say? Click here.)

If by some chance you don't qualify for Centurion – and wouldn't want it even if you could – you're not alone! According to industry estimates, there are only about 10,000 Centurions out there.

Is There a Prestige Credit Card in Your Reach?

Both MasterCard and Visa have prestige credit cards that are marketed as Visa Signature Cards and World MasterCards. These cards have lots of enhanced benefits, geared to more typical cardholders – at no additional cost. Surprised? Don't be. Card issuers are in fierce competition, and they want business so badly, they are dangling bigger and better carrots in front of us.

Like Amex's Centurion, these cards offer tons of benefits for frequent flyers and spenders, including hotel discounts and upgrades, rebates on travel, extra travel insurance, points good for free flights with no blackout dates, VIP reservations at expensive restaurants, special discounts at stores and spas, early ticket purchasing for concerts and sporting events, flexible, generous rewards … and on and on.

Chances are, you already have a credit card issued by a lender that would be happy to give you Visa Signature or World MasterCard privileges – assuming your credit is good to excellent, you earn in the range of $125,000 a year, and you charge at least $2,000 a month. While the offers on individual cards change frequently, it's quite likely that you can find a card with an introductory rate of 0%, no annual fee or a low one (up to around $85), and as reasonable an interest rate as you'd get on cards without the extra benefits.

Surf over to these two sites and take a gander at the freebies you can get:

• Visa Signature


• World MasterCard

Warning: Don't let the lure of the extra benefits tempt you into charging more than you can afford. But if you do a lot of traveling for business, why not reap the enhanced rewards?

Do you have a prestige credit card? Please share with others the benefits you have used!

This article was originally published on CreditBloggers.com by Curtis Arnold, a nationally recognized consumer educator and advocate. Curtis has been educating consumers about credit cards since 1998. He is regularly interviewed and quoted by respected members of the national press regarding consumer credit issues. Curtis is currently working on publishing a book about credit card usage with Pearson/Prentice Hall- more details forthcoming!

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CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thank you for your interest!

Beware of Credit Card Foreign Transaction Fees!

By Heshan Demel, CardRatings.com, Consumer Credit Researcher


Foreign exchange fees on credit cards should be of keen interest to those traveling beyond the borders of the United States. Exchange rates offered by credit cards are usually hard to beat. Of equal and perhaps greater importance, however, is the foreign transaction fee that your credit card bill might show once you have returned home from your trip. This fee, which is often a shock to cardholders, has been increasing as of late. So cardholders that travel overseas extensively need to be aware of foreign transaction fees.

Many travelers now rely on credit cards to pay for overseas travel and purchases. For many consumers, credit cards are easier to keep up with than traveler's checks and they're almost universally accepted now.

Foreign transaction fees charged by credit card issuers will mean you may pay a little extra for that umbrella drink in the Caribbean or that Parisian pastry.

Virtually every credit card assesses an international transaction fee for purchases done outside the 50 states, and that could even include U.S. territories like Puerto Rico and the U. S. Virgin Islands. Visa and MasterCard charge a 1% processing fee and most card-issuing banks add additional fees as well (on top of the 1% fee levied by MasterCard/Visa).

This fee is generally a percentage of the U.S. Dollar value of the transaction. So, even if you paid 100 Euros for a meal that was actually $125.00 (U.S. Dollars), the foreign transaction fees will be assessed on the $125.00 amount.

A March 2007 survey of credit card issuers by CardRatings.com revealed the following foreign transaction fees:

American Express - 2%
Bank of America - 3%
Chase - 3%
Citi Bank - 3%
Washington Mutual - 1%
Wells Fargo - 3%
Capital One - No Foreign Transaction Fee
Discover - Rarely accepted overseas so not part of this list

Despite fee hikes in the past year or so, credit cards are often still the most cost effective payment method for overseas travel, but you should consider fees when planning your trip and budget accordingly.

Update: You maybe entitled to a refund of any Foreign Transaction Fees imposed between Feb 1, 2006 and November 08, 2006. Please refer to www.ccfsettlement.com.

Bon voyage!

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Heshan Demel- Heshan joined the CardRatings.com family in January 07 but has supported them for many years due to his close friendship with its founder. He has a bachelor's degree in finance from Ouachita Baptist University in Arkadelphia, Arkansas and a Master's Degree in Business Administration (MBA) from the University of Arkansas at Little Rock, Arkansas. He has over 9 years of banking experience with Regions Bank where he was a loan analyst. He is a member of the Arkansas Young Professionals Network and enjoys ballroom dancing, travel, and entertaining.

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We welcome your comments about credit card issues in our popular credit forum!

CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thanks for your interest!

Credit Card Foreign Transaction Fees on the Rise

By Heshan Demel, Consumer Credit Researcher - CardRatings.com


Foreign exchange fees on credit cards should be of keen interest to those traveling beyond the borders of the United States. Exchange rates offered by credit cards are usually hard to beat. Of equal and perhaps greater importance, however, is the foreign transaction fee that your credit card bill might show once you have returned home from your trip. This fee, which is often a shock to cardholders, has been increasing as of late.

Many travelers now rely on credit cards to pay for overseas travel and purchases. For many consumers, credit cards are easier to keep up with than traveler's checks and they're almost universally accepted now.

Despite the convenience associated with using cards out of the country, there are normally costs associated with the convenience. Foreign transaction fees charged by credit card issuers will mean you may pay a little extra for that umbrella drink in the Caribbean or that Parisian pastry.

Virtually every credit card assesses an international transaction fee for purchases done outside the 50 states, and that could even include U.S. territories like Puerto Rico and the U. S. Virgin Islands. Visa and MasterCard charge a 1% processing fee and most card-issuing banks add additional fees as well (on top of the 1% fee levied by MasterCard/Visa).

This fee is generally a percentage of the U.S. Dollar value of the transaction. So, even if you paid 100 Euros for a meal that was actually $125.00 (U.S. Dollars), the foreign transaction fees will be assessed on the $125.00 amount.

A recent CardRatings.com survey of credit card issuers revealed the following foreign transaction fees:

American Express - 2%
Bank of America - 3%
Chase - 3%
Citi Bank - 3%
Washington Mutual - 1%
Wells Fargo - 3%
Capital One - No Foreign Transaction Fee
Discover - Rarely accepted overseas so not part of this list

Despite fee hikes in the past year or so, credit cards are often still the most cost effective payment method for overseas travel, but you should consider fees when planning your trip and budget accordingly. Bon voyage!

We welcome your comments about credit card and other money issues in our popular credit forum!

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Heshan Demel- Heshan is new to the CardRatings.com family but has supported them for many years due to his close friendship with its founder. He has a bachelor's degree in finance from Ouachita Baptist University in Arkadelphia, Arkansas and a Master's Degree in Business Administration (MBA) from the University of Arkansas at Little Rock, Arkansas. He has over 9 years of banking experience with Regions Bank where he was a loan analyst. He is a member of the Arkansas Young Professionals Network and enjoys ballroom dancing, travel, and entertaining.

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CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online.
Click here for more details about using our articles and thanks for your interest!