American Express facts for kids
.svg){kind=logo} |
|
Headquarters at the American Express Tower
|
|
| Public | |
| Traded as |
|
| Industry |
|
| Predecessor |
|
| Founded | March 18, 1850, in Buffalo, New York, U.S. |
| Headquarters | 200 Vesey Street,
,
United States
|
|
Area served
|
Worldwide |
|
Key people
|
Stephen J. Squeri (Chairman & CEO) Jeffrey C. Campbell (Executive VP & CFO) |
| Products |
|
| Services | |
| Revenue |  US$60.52 billion (2023) |
|
Operating income
|
US$10.51 billion (2023) |
| US$8.374 billion (2023) |
|
| Total assets | US$261.1 billion (2023) |
| Total equity | US$28.06 billion (2023) |
|
Number of employees
|
74,600 (2023) |
American Express Company (often called Amex) is a big American company that helps people with money and payments. It's known for its credit cards and charge cards. Amex is based in New York City at the American Express Tower. It's one of the largest card networks in the world, after China UnionPay, Visa, and Mastercard.
In 2022, over 133 million Amex cards were used globally. People spent a lot of money using these cards each year. Amex is also one of the biggest banks in the U.S. and is often listed among the top companies in the world.
Amex started in 1850 as a company that moved goods. Later, in the early 1900s, it began offering financial and travel services. It created its first paper charge card in 1958. Over the years, Amex introduced different cards like the Gold (1966), Green (1969), Platinum (1984), and the very exclusive Centurion Card (1999). Its famous slogan, "Don't Leave Home Without It," started in 1975.
Today, American Express cards are widely accepted in the U.S. (at about 99% of places that take credit cards). However, they are less common in Europe and Asia. Amex offers many types of cards, including ones for travel, everyday spending, and getting cash back. These cards come with different benefits and rewards.
Contents
History of American Express
How Amex Started
American Express began in 1850 in Buffalo, New York. It was formed when three companies that moved money and goods joined together. These companies were owned by Henry Wells, William G. Fargo, and John Warren Butterfield. Wells and Fargo later started another famous company called Wells Fargo & Co. in 1852.
American Express first set up its main office in New York City. For many years, it was almost the only company that moved goods and money across New York State. In 1874, Amex moved its headquarters to 65 Broadway in the Financial District.
In 1890, the company built a new, taller building on Hudson Street. By 1903, American Express was a very rich company, second only to the National City Bank of New York in the city. To show this, they bought the Broadway buildings.
In 1914, a new president, George Chadbourne Taylor, decided to build an even bigger headquarters. The new 21-story neo-classical American Express Co. Building was built in 1916–17. American Express sold this building in 1975, but they still kept travel services there.
Growing Across the Country
American Express grew by working with other shipping companies, railroads, and steamship lines. In 1857, Amex started offering money orders, competing with the U.S. Post Office.
A big change happened around 1890. The president of American Express, J. C. Fargo, found it hard to get cash while traveling in Europe. He asked Marcellus Flemming Berry to create a better way to carry money safely. Berry invented the American Express Traveler's Cheque, which launched in 1891. These cheques came in different amounts like $10, $20, $50, and $100.
Traveler's cheques helped American Express become a global company. When World War I started in 1914, American Express in Europe was one of the few companies that helped Americans stuck there by honoring their letters of credit. The British government even made Amex its official agent to deliver letters, money, and packages to British prisoners of war.
In 1915, American Express started a travel division and opened its first travel agency.
Changes in the Early 1900s
During World War I, the U.S. government took control of the railroads to help with the war effort. This meant all shipping companies had to combine into one new company called the American Railway Express Agency in 1918. This ended American Express's original shipping business.
Amex leaders thought about launching a travel charge card as early as 1946. But it wasn't until Diners Club launched its card in 1950 that American Express seriously considered it. On October 1, 1958, Amex launched its own charge card. It was so popular that 250,000 cards were issued before the official launch date! The card cost $6 a year, a bit more than Diners Club, to show it was a special product. The first cards were made of paper, but in 1959, American Express was the first to use plastic cards with raised letters.
In 1966, the company introduced the Gold Card for people who spent a lot. In 1984, the Platinum Card was launched. It was very exclusive and had a $250 yearly fee. Only certain American Express customers were invited to get it.
In 1987, American Express introduced the Optima card. This was their first credit card that didn't require you to pay the full amount each month.
From the 1990s to Today
In the 1990s, some restaurants in Boston stopped accepting American Express cards. They preferred Visa and Mastercard because Amex charged higher fees at the time. This event was called the "Boston Fee Party." It spread to many restaurants across the U.S. American Express then lowered its fees to get these restaurants back. The company also started focusing on being accepted by more places, like Walmart, instead of just exclusive ones.
In 1998, Amex launched the Blue credit card, aimed at younger adults. It had a smart chip and encouraged users to manage their accounts online.
In 1999, American Express introduced the very high-fee Centurion Card, often called the "black card." This card is for extremely wealthy customers. Amex created it because of rumors that such an exclusive black card already existed for elite users.
In 2004, rules that stopped U.S. banks from issuing American Express cards were removed. This led to new partnerships, like one with MBNA and later Bank of America, allowing more banks to offer Amex cards.
In 2005, American Express launched ExpressPay, a way to pay by tapping your card. They also introduced the American Express Travelers Cheque Card, a stored-value card that worked like a traveler's cheque but could be used in stores.
During the 2007–2008 financial crisis in 2008, American Express became a bank holding company. This allowed it to get government help, which it later paid back.
In 2013, Amex opened its first airport lounges, offering special access to some cardholders.
A big change happened in 2016 when Costco in the U.S. stopped its long-standing partnership with American Express. Costco then started working with Citigroup and Visa. This was a significant change for Amex, as the Costco partnership made up a large part of its business.
In 2017, American Express started a new company in China to offer its payment cards there. In 2020, it got a license to clear bank card payments in China.
In 2018, the U.S. Supreme Court of the United States ruled that American Express could stop merchants from encouraging customers to use other cards. This was part of a lawsuit about Amex's fees.
In 2020, American Express bought Kabbage, a company that helps small businesses. In 2021, Amex launched its first checking account for small businesses.
In 2021, there were some questions about how American Express sold cards to corporate customers in 2015 and 2016. In 2023, Amex agreed to pay $15 million to the U.S. Treasury to settle an issue about how it managed a third-party partner.
In 2022, American Express stopped all its business in Russia and Belarus due to world events.
Amex's Financial Growth
Here's a look at American Express's money earned and profit over the years:
| Year | Revenue | Net income |
|---|---|---|
| 2023 | 60.5 | 8.4 |
| 2022 | 55.6 | 7.4 |
| 2021 | 43.6 | 7.9 |
| 2020 | 38.1 | 3.0 |
| 2019 | 47.0 | 6.6 |
| 2018 | 43.2 | 6.7 |
| 2017 | 38.9 | 2.6 |
| 2016 | 37.1 | 5.2 |
| 2015 | 34.4 | 5.0 |
| 2014 | 35.8 | 5.8 |
| 2013 | 34.8 | 5.3 |
| 2012 | 33.7 | 4.4 |
| 2011 | 32.2 | 4.8 |
| 2010 | 30.0 | 4.0 |
| 2009 | 26.5 | 2.1 |
Amex Cards: What They Offer
As of late 2023, American Express had over 141 million cards in use. Each cardholder spent about $24,059 per year on average. These cards include ones for regular people, small businesses, and large companies. Other banks around the world also issue Amex cards that run on its network.
American Express is the fourth largest card network globally based on how much money is spent using its cards. It's also the 4th largest based on the number of cards in circulation.
Amex works with mobile payment systems like Google Pay and Apple Pay. This means you can use your Amex card with your phone at places that accept NFC payments. American Express also offers many contactless credit cards.
Different Types of Amex Cards
- In 1958, American Express launched its first charge card. With a charge card, you have to pay off your full balance at the end of each month.
- In 1966, the company introduced its first Gold Card, for business travelers and people who spent more.
- The Platinum Card came out in 1984.
- In 1999, American Express launched the very high-fee Centurion Card, often called the "black card." This card is for very rich customers. Amex created this card because of rumors that they already had a secret, super-exclusive black card for their best customers.
Managing Your Account Online
American Express offers online tools for businesses to manage their cards. For example, "American Express @ Work" lets companies apply for, cancel, or pause cards. It also helps them track spending and make reports.
For individual cardholders, the "Manage Your Card Account" site lets you see your statements, make payments, and check your spending. You can also do this on a mobile device. Corporate cards often come with benefits like travel discounts, travel insurance, and help in emergencies.
Special Cards for Businesses
American Express has special cards for businesses, like a corporate meeting credit card. They also have the American Express Corporate Purchasing Card, which can be given to individual employees or departments. These cards help companies keep track of their spending easily.
Other Banks That Issue Amex Cards
While American Express issues many of its own cards, other banks also offer American Express cards. These include Citibank, First National Bank of Omaha, USAA, Navy Federal, Synchrony Financial, and US Bancorp. For example, Citi issues the Macy's and Bloomingdale's American Express cards. Some credit unions also offer Amex cards.
Amex Marketing and Ads
Card Look
The American Express logo, which shows a gladiator or centurion, is often in the middle of many of their cards. This figure looks strong and stable, like something from ancient times. The designs on the cards, especially the Green Card, look a bit like U.S. money.
Famous Ad Campaigns
"Don't Leave Home Without Them"
In 1975, the ad company Ogilvy & Mather created the very successful "Don't Leave Home Without Them" ad campaign for American Express Traveler's Cheques. It featured the famous actor Karl Malden. He was the face of American Express Traveler's Cheques for 25 years.
Later, as the credit card became more important, American Express used other celebrities in their ads. A typical ad would start with a celebrity asking, "Do you know me?" They would give hints about who they were, and then their name would appear on an American Express Card. The ad would end with the celebrity saying, "Don't Leave Home Without It." This slogan was brought back in 2005.
The Adventures of Seinfeld & Superman
American Express has used many celebrities in its ads. A fun example from the late 1990s was a campaign with comedian Jerry Seinfeld. This included two online videos in 2004 called "The Adventures of Seinfeld & Superman".
"My life. My card. / Are You a Cardmember?"
In late 2004, American Express started the "My life. My card." ad campaign. Later, in 2007, they launched "Are You a Cardmember?" Both campaigns featured celebrities who used American Express cards, such as:
- Actors like Kate Winslet, Robert De Niro, and Tina Fey;
- Sports stars like golfer Tiger Woods and tennis players Venus Williams and Andy Roddick;
- Singers like Alicia Keys and Beyoncé.
"Animals" Ad
In 2007, a two-minute black-and-white ad called "Animals," starring Ellen DeGeneres, won an award for being an outstanding commercial.
C. F. Frost on Cards
Many American Express credit card ads show a sample card with the name "C. F. Frost" on it. This isn't a made-up name; Charles F. Frost was a real advertising executive who worked for Ogilvy & Mather.
Helping Good Causes
American Express was one of the first companies to use "cause marketing." In 1983, they ran a promotion where for every purchase made with an American Express Card, they would give one penny to help fix the Statue of Liberty. This campaign raised $1.7 million for the statue and also made more people use their Amex cards.
In 2007, American Express started the Members Project. Cardholders could suggest ideas for projects, and Amex would fund the winning idea.
Sponsorships
Since 2011, American Express has a big sponsorship deal with the football club Brighton & Hove Albion F.C. This includes naming their stadium American Express Community Stadium.
In 2024, American Express became an official partner of F1 Academy, a racing series for female drivers. Their logo appears on one of the race cars and driver suits.
Awards and Recognition
In 2016, American Express received an award for its "World's Monument Watch" program. Amex helps fund this program, which works to protect important historical sites around the world.
Working at Amex
Amex Offices
.jpg)
In April 1986, American Express moved its main office to the 51-story Three World Financial Center in New York City. After the September 11 attacks in 2001, the building was damaged because it was right across from the World Trade Center. American Express had to leave temporarily but slowly moved back into the repaired building in 2002.
The company also has large offices in Sunrise, Florida, Salt Lake City, and Phoenix, Arizona. Its main computer centers are in North Carolina and Phoenix.
AMEX Bank of Canada was started in 1853 in Toronto. It has about 1,700 employees in its main office in Toronto and another office in Hamilton, Ontario.
American Express has several offices in the UK, including a European Service Center in Brighton, England. This building was finished in 2012 and handles card services, sales, and fraud. The main office for Europe, the Middle East, and Africa is in central London.
Amex's headquarters for Japan, Asia-Pacific, and Australia are in Singapore and Sydney. The main office for Latin America and the Caribbean is in Fort Lauderdale, Florida.
American Express also has a big presence in India, with two centers in Gurgaon and Bangalore. These centers help with customer services and other business operations for Amex globally.
Job Satisfaction
American Express is often listed as one of the best companies to work for by magazines like Fortune.
List of CEOs
- Henry Wells (1850–1866)
- William Fargo (1866–1881)
- J. C. Fargo (1881–1914)
- George C. Taylor (1914–1923)
- Frederick P. Small (1923–1944)
- Ralph Reed (1944–1960)
- Howard L. Clark Sr. (1960–1977)
- James D. Robinson III (1977–1993)
- Harvey Golub (1993–2001)
- Kenneth Chenault (2001–2018)
- Stephen Squeri (2018–present)
See also
In Spanish: American Express para niños
- Small Business Saturday, a special day created by American Express to support small businesses
- MasterCard, Visa and Discover Card – other major payment card companies
- Credit score in the United States
- Banking in the United States
- American Express Community Stadium in East Sussex, England
