Here's the real reason why American Express gives out such big rewards (2024)

FAQs

Here's the real reason why American Express gives out such big rewards? ›

Here's the real reason why American Express gives out such big rewards. “Discount revenue,” or fees charged to merchants that accept its cards, is the company's main source of revenue. Big spenders are AmEx's most important asset.

Things That Make Amex Cards Special

Amex allows other banks and credit unions to issue cards on the Amex network as well. The cards often have rewards. American Express is known for having a large selection of rewards cards, from travel to cash back to cards that are co-branded with merchants.

American Express is one of the leading card issuers in the United States. It's known for its top-notch customer service and some of the best rewards available. From ultra-elite business travel cards to everyday rewards, American Express has credit cards that are a good choice for many different types of cardholders.

Amex cards aren't exactly easy to get, but that has only made them more popular with consumers who are looking for a sense of exclusivity and prestige. In addition, nearly all Amex cards have high rewards rates in a wide selection of spending categories such as travel, grocery stores, dining, and streaming services.

Due to higher transaction fees than other cards, some merchants won't accept Amex cards. You can't get an Amex card without at least a good (670 or higher) credit score. Annual fees for Amex cards can be high. You must pay the balance on Amex charge cards in full each month, so you can't use them to “borrow” money.

What is the most prestigious credit card? One of the world's most prestigious credit cards is the Centurion® Card from American Express*. Though there may be other cards with more elaborate benefits, those cards are kept well under wraps.

American Express may not be accepted everywhere, but there's a reason it remains so popular among customers. For one, Amex credit cards can come with incredible rewards. Not only can you earn points, but you can use those points for great rewards like free flights and hotel stays.

Feel secure with Credit Card protection

At American Express, we're dedicated to keeping you safe. Online safety protection, fraud alerts and Account monitoring mean you can shop confidently, knowing we've got your back.

Centurion® Card from American Express

A rating of 5 is the best a card can receive. Why it's one of the hardest credit cards to get: The hardest credit card to get is the American Express Centurion Card. Known simply as the “Black Card,” you need an invitation to get Amex Centurion.

The best credit card overall is the Wells Fargo Active Cash® Card because it gives 2% cash rewards on purchases and has a $0 annual fee. For comparison purposes, the average cash rewards card in 2024 gives about 1% back. Cardholders can also earn an initial bonus of $200 cash rewards after spending $500...

Are you rich if you have American Express? ›

No, American Express is not specifically for rich people, even though it does have a high level of status in many people's minds. Applicants need good or excellent credit scores of 700+ to qualify for Amex credit cards, and you don't need to be rich to have a good credit score.

The American Express® Gold Card is considered a luxury card since it's a metal card with impressive rewards on dining, groceries, and travel.

American Express is a leading issuer of personal, small business, and corporate credit cards.

American Express is special because it is a luxury credit card brand, known for offering elite rewards and having exclusive approval requirements. American Express also is among the country's largest credit card issuers by purchase volume, and it is one of the four major payment networks.

The card earns Membership Rewards that are valuable if you want to maximize travel. However, you may be better served with a general cash-back card if you don't have specific reward goals or want to deal with any extra steps in your redemptions.