American Express -- An American Success Story

The American Express company is now 155 years old and going strong. The global financial services powerhouse is one of this nation's most recognizable brands around the world, in the same league as Coca-Cola and Disney. And, it is the power of this brand that has sustained the company through some difficult times.

American Express started out in 1850 as a freight and valuables delivery service for the rapidly expanding nation. The fledgling U.S. Postal service was quite unreliable at the time and only allowed shipment of letter-sized envelopes. This provided a business opening for the company to ship larger parcels and valuable items such as jewelry, cash, stock certificates and other merchandise. American Express began to realize more profit from a sector of their customer base which included banks and other financial institutions. Banks placed a high value on American Express' secure and reliable delivery service for inter bank transfers and drafts made between eastern cities and the growing western territories. American Express then began focusing their efforts on this sector and used their connections to eventually enter the financial services arena.

In the late 1890's, American Express decided to compete with the very banks they serviced by issuing money orders. This line of business took off rapidly and allowed the company to expand into Europe, where the American Express brand name became associated with security, capital and dependability. Soon thereafter, the company had major offices in London, Paris, Antwerp, Zurich and Berlin.

A major world event, the beginning of World War I, forced American Express into the travel services businesses. Over 150,000 Americans were stranded in Europe in 1914 at the outbreak of the Great War. These citizens flocked to the offices of American Express seeking funds after other European banks refused to honor their American letters of credit. American Express honored these letters of credit in full, which allowed American citizens to fund their passage back home.

In 1922, American Express jumped headlong into the travel services business by providing luxury steamship travel around the world, along with most other related services for passengers. And the traveler's check business meshed well with this well-heeled crowd of luxury globe hoppers. The travelers check business fueled the growth of the company over the next several decades based on the upfront fees and wise investment of the float income involved.

In the 1950's, American Express issued their first credit card, which caught on quickly in the booming post-war economy. In 1966, the company issued their first Gold Card, in an effort to cater to the upper echelon of business travel. Further product differentiation was achieved in the 1990's with the first Platinum Card.

American Express continues to be a powerful global brand through the present day with an incredible array of consumer products ranging from the Blue Card to the ultra exclusive Black Card (which isn't even advertised to the public, but is only issued by invitation only to the wealthy and famous). If you would like to review the products offered by this brand icon, please visit our American Express section.

The American Express Card: Is it Right for You?

What do you think of when you think of American Express? Do you think of a credit card only for the wealthy? Or maybe a credit card out of reach for the common person? Actually, American Express offers credit cards for just about everybody.

There are two different types of American Express cards. There are American Express Charge Cards and American Express credit cards. The charge card gives you an unsecured line of credit that you must pay off in full every month and requires an annual membership fee of $50. An American Express Credit Card is just like any other credit card that lets you pay off your balance over time with an APR that is competitive to most lending institutions.

American Express credit cards offer its members many rewards. The American Express credit card that you will want will depend on what you are looking for.

American Express Credit Cards for Travelers

American Express credit cards offer a wide range f benefits for travelers. A main reason so many business owners and travelers get the America Express card is because it gives them automatic flight insurance and baggage protection. In addition, it offers things like roadside assistance if you are more than 100 miles from home, and other travel-related benefits.

These benefits come with many of the American Express charge cards. But if you want a credit card, the Delta Skymiles American Express Card might be something to look into. This card gives you one frequent flyer mile on Delta for every dollar spent. In addition, it gives you double points on all purchases at gas stations, grocery stores, post office, and other places. This card is right for those who want travel benefits without having to pay off their balance very month.

With American Express Feeling Blue is a Good Thing

For those out there who don’t want to pay annual fees and like cash back rewards, American Express has a card for you. It’s called Blue. Blue offers these features:

• No annual fee
• Cash back on most purchases
• Online purchase protection

Blue is a very accessible American Express credit card. It shatters the illusion some people might have that American Express is only for the wealthy. This card is for people who like to get rewards but hate annual fees. And it is a credit card, so you can pay it off over time.

As you can see, American Express has many cards to choose from. These cards all have their own features. Some of them even offer a balance transfer option when you first apply. And with the American Express credit card, you can get additional cards on the same account—perfect for families.

It's easy to see why so many people enjoy the benefits an American Express Credit Card offers. It offers something for everyone’s taste. Whether you are looking for a good reward program credit card, a gold card, a smart credit card, or a charge card, American Express has many cards to choose from. The one you choose will be up to you.