Tag Archives: American Express

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American Express Introduces Debit Card, Digital Checking Account for Small Busines

American Express – the famous card issuing company for small businesses in the United States, has unveiled the fully digital form of Business Checking Account for SMBs. 

The Business Checking Account by American Express will be offering small business enterprises a highly secure, low-fee, and top-yield experience of digital banking. The account is available with the APY or Annual Percentage Yield of 1.1 per cent on the overall balances that remain around $500,000. The all-new Business Checking Account is also responsible for connecting with the existing credit cards by American Express. Moreover, small businesses are also issued with a dedicated Business Debit Card.

American Express Unveils Business Checking Account and Debit Cards for Small Businesses

Business accounts that are dedicated to small businesses with the help of the all-new Business Checking Account by American Express can help business enterprises (SMBs) look into as well as operate at a highly professional level. The digitization of such accounts only takes the process one step higher as it helps in streamlining as well as simplifying the overall process of cash management.

It is also quite profitable to earn interest rates of high yield at the moment when small business organizations are still going through the struggles of the pandemic.

Full-service, Customer-First Digital Business Account

Dean Henry –Executive Vice President (Global Commercial Services) at American Express, delivered comments on the launch of the all-new and fully digital Business Checking Account for small business enterprises in the United States of America.

We have come up with the revolutionary American Express Business Checking scenario from scratch. This is because small businesses revealed that they want to obtain more out of the existing business checking account services. The all-new version of Digital Business Account by American Express features a full-service, customer-first type of business checking account for ensuring the overall ease of cash management. Moreover, the account is also responsible for processing a wide range of payment types while earning high-yield interests upon balanced of the amount $500,000. Moreover, with this business account, customers will also be capable of earning and redeeming the exclusive membership reward points.

Henry added that it can be regarded as business checking with the best services of American Express. Businesses can look forward to receiving rewards, security, and high-end services while being capable of investing back into the respective businesses. 

Membership Reward Points

During the start of 2022, customers of Business Checking accounts can easily earn points of Membership Rewards. They can easily redeem the same for ensuring deposits into the account of Business Checking. 

Another major benefit that can be enjoyed by small businesses can enjoy the all-new account of Business Checking while earning the welcome deposit of amount $300 in the form of welcome bonus. Account holders are not expected to pay any amount of monthly fees. Moreover, there is no requirement of any minimum balance as well. 

To top it all, small businesses having access to Business Checking accounts will also be capable of getting access to the network of as much as 37,000 ATMs that remain free of fees. This service is provided as American Express entered into the partnership with MoneyPass for providing such a service. Customers will also get access to one-stop and full-feature application that features the ability to ensure mobile-based check deposits.

When businesses have access to Business Checking accounts coming with a myriad of benefits along with reliable customer support services, it serves to be a valuable asset for small businesses. This also helps in freeing up the time of small businesses from banking-specific commitments such that they can continue with running their business seamlessly. 

Features of Business Checking Accounts by American Express

Both small as well as mid-sized businesses in the United States of America can easily apply for the Business Checking account facility in a matter of 10 minutes. Once your application is approved, businesses can receive access to the following set of features:

  • ATM Access Through MoneyPass: American Express has put forth its partnership with MoneyPass for offering access to an extensive network of as many as 37,000 ATMs that are fee-free to the customers of Business Checking accounts for balance enquiries and ATM cash withdrawals. 
  • Welcome Bonus: New customers of Business Checking accounts will be earning as much as $300 deposit amount in the form of welcome bonus for opening the account.
  • No Monthly Fees: Businesses can enjoy $0 monthly maintenance fee without any requirement of maintaining a minimum balance. 
  • Competitive APY: Businesses can leverage the benefits of APY of a high yield of 1.1 per cent on the balances of around $500,000.
  • Connected Membership Features: You can go through the American Express cards and the entire Business Checking account in a single place. With effect from 2022, customers of Business Checking accounts will also be earning points of Membership Rewards while redeeming the same for making deposits in to the account of Business Checking.
  • Support for Multiple Transaction Types: Businesses can access a full spectrum of payment options for receiving as well as transferring funds –including Bill Pay, Debit Card, Check, Wire Transfers, and ACH.
  • Intuitive and Simple App Functionality; You can easily manage the Business Checking accounts with the help of a one-stop, full-feature iOS application with the help of the mobile check deposit benefit.
  • Faster Onboarding Process: Businesses can consider applying and getting a decision within a span of 10 minutes –without the requirement of stepping foot into the physical bank branch. 
  • Trusted Customer Service: You can get access to round-the-clock support services along with assistance from specialists of American Express –just a call or click away.
  • View-based Access: The account is also known to provide members on the team with reliable access for viewing the account of Business Checking. Some additional role-based features will be available from 2022. 

American Express is a leading integrated payment service provider across the globe. It helps customers with reliable access to its products, experiences, and insights for enriching the overall journey.

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The Best Credit Card Offers for 2020 and 2021

If you have a New Year’s resolution to get your finances in order, that may include finding the right credit card. If you have a high-interest card that doesn’t provide you with any rewards or benefits, you could be missing out.

The Top Credit Card Offers for 2020 and 2021.

Here are the top credit card offers for 2020 and 2021.

Discover-It Cash Back

If you want a simple credit card that pays you for your purchases, Discover-It is it. You earn 5% back on your purchases up to $1,500 each quarter. The reward categories change, but you always have options, and they are typically categories everyone spends in or specific stores everyone shops at (such as Amazon).

Discover also doubles the cashback you earn after your first year. In other words, you earn ‘free money’ if you keep your card in good standing for the year.

Citi Double Cash Card

Earn 1% back on all purchases and an additional 1% when you pay your bill. Even if you pay your balance over a few months, you still earn 1% of what you pay. So it totals out to 2% cashback as long as you don’t let interest charges take over your rewards.

The Citi Double Cash card doesn’t have a reward bonus like most cards, but it comes with a 0% balance transfer APR for 18 months. That’s a nice long period to pay off your balance before interest accrues.

Chase Freedom Unlimited

chase freedom unlimited

If you like tiered rewards, check out the Chase Freedom Unlimited card. There’s no annual fee, and you earn cashback year-round in a tiered manner.

It’s best for people who travel as you get the largest reward on travel purchases (5%). It also pays 3% back on restaurant purchases, 3% back at drugstores like CVS, and 1.5% back on all other purchases. So, no matter where you spend money, you’ll earn cashback.

Bank of America Cash Rewards Credit Card for Students

Students sometimes have a hard time finding a credit card that provides them any benefits besides a small credit line. The Bank of America card is a great place to start and it offers students rewards.

Students earn 3% cashback on a category that you choose, whether it’s groceries, dining out, or gas. Students can also earn 2% cashback on groceries, including Sam’s Club and Costco, and 1% back on everything else.

The 3% bonus category and 2% rewards can be used up to $2,500 per quarter, and then it falls to 1%, which is the perfect amount for students.

Look at the Credit Card Rewards you Need

Rewards Cards

Before you take just any credit card, determine your needs. What rewards will you use and what categories do you spend money in the most? Why not take advantage of what credit cards have to offer by finding the card that pays you back in ways you’ll use it and for purchases you already make?

If you aren’t sure which one is right for you, pull out your bank and credit card statements for the last year and total up your spending in each category to make the right choice.  

Pretentious Amex Branding Does Not Entice Millennials

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Membership may have its privileges, but American Express is finding out that members of the Millennial Generation do not consider feeling snooty as a privilege.

As a credit card and as a symbol of refinement by means of wealth, American Express has long been associated with the moneyed class and the jet set, and this association can be explained by the company’s marketing and branding efforts over the last few decades. Unfortunately, this marketing image seems to have backfired in relation to appealing to millennials.

A recent article in The New York Times illustrated the woes currently experienced by the legendary credit card company, which is trying its best to attract millennials, particularly those that have made their fortunes at an early age and would be eager to travel the world and spend at their leisure. It so happens that young and wealthy are more likely to leave home without Amex cards because they fear that they may be labeled as snobs.

The New York Times article explains that a competing credit card issuer held a focus group by inviting millennial professionals to dinner at an expensive restaurant. These are the kind of cardholders that Amex would drool over; however, there was a surprise at the end of the meal when the focus group participants were casually asked which credit they would use to pay for the meal. Right off the bat, a diner explained that flashing an American Express card was out of the question because it would seem as a blusterous act of braggadocio.

The other millennials in attendance at the dinner agreed that using Amex for payment would send an unwanted message, one that screams “look at me: I’m rich!” To drive the dagger even deeper and twist it, one of the dinner guests said that he would prefer to pay with a Chase Sapphire Reserve card, clearly a better choice among millennial cardholders.

What Chase has accomplished with its Sapphire Reserve product is exactly what Amex would like: capture the attention of young cardholders. The problem is that Amex is no longer considered cool; young consumers are not particularly interested in being lumped with the “one percent.” The Chase Sapphire, on the other hand, is heavily marketed on social media and offers benefits that speak to the Millennial Generation. In other words, Amex will likely need to change its image for the purpose of becoming cool again.

Isis Mobile Wallet is Here

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Isis Mobile Wallet Debuts Using NFC Technology

A joint venture between AT&T, Verizon Wireless and T-Mobile known as Isis Mobile Wallet has released a revolutionary mobile payments app that promises to change the way people pay for goods and services. The trio of mobile service providers are ecstatic to finally debut this mobile payment platform right before Black Friday and the rush of the holiday shopping season, as this technology lets consumers conveniently utilize their mobile phone to pay for goods and services. Use of the platform makes it easier for merchants to accept a wider variety of payments and the Isis system itself encourages repeat purchases through loyalty programs tied into the app and its software.

The debut of Isis also heralds a huge step forward for Near Field Communication technology (NFC), a topic we’ve been consistently covering since our Official Merchant Services Blog began.

What Is the Mobile Wallet Platform?

The Isis Mobile Wallet platform is a completely free mobile application that utilizes NFC technology to allow consumers to pay for purchases by waving their mobile device in the air at a terminal that captures the pertinent information out of thin air.  The mobile payment industry has been dealing with one large obstacle from NFC recently, as Apple hasn’t made its iPhones compatible with NFC. And so an Isis representative said that iPhone support would come at a later time. Until then, the app is available on all other compatible phones, but users should be aware that downloading the app could cost money if they are not subscribed to a monthly plan with unlimited data.

 

How the Platform Works

The NFC technology used in the mobile payments app allows mobile devices to transfer information when they are tapped together.  Merchants who use devices with this technology can accept payments quickly and securely from customers who have compatible devices. But wait, there’s more.

Mobile payments represent just one of the benefits of the Isis app.  Merchants can offer loyalty rewards to customers through the app.  These rewards can be earned and stored directly on a mobile device. We’ve delved into some of these types of incentives in our coverage of the Barclays bPay app, as well as social gifting articles. The basic idea of what’s happening is the app is giving customers yet another avenue for savings through their mobile device, in hopes to spur more purchases. Discounts are automatically deducted from a sale when Isis is used to pay for a product or service.  There’s no need for merchants to have cards or keychains printed, and customers do not have to worry about keeping track of dozens of loyalty cards.

Some specific incentives that are tied with the Isis debut: Isis Mobile Wallet customers can use My Coke Rewards and Isis to get three free drinks at select vending machines, while Jamba Juice is giving away 1 million free smoothies to Isis users. Purchases made from an American Express Serve account through the Isis wallet are eligible for a 20 percent discount (up to $200).

A PIN is used to protect personal information if a phone is lost or stolen.  The wallet can be locked when a phone is lost to prevent information from being breached.

Phone Compatibility With NFC Technology

NFC technology requires a cellphone user to have personal payment information stored on their phone.  The sensitive nature of this information means that extra precautions must be taken.  An enhanced SIM card that specifically details that it has been made for secure data storage must be used in conjunction with the application. Interested customers will have to get an enhanced SIM card to run Isis. They will also have to download the app on Google Play or get signed up at retail stores run by the three carriers.

How to Save Money on Credit Card Processing Fees

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Here at Host Merchant Services we guarantee to save our customers money every month on their credit card processing. We understand that some of you are wondering how we do this! Transparency is a key cornerstone of our customer service values, so we have no problem sharing our secret formula and show everyone out there exactly how we carve out superior savings for every single one of our customers. We believe that when you get your statement every month, you should understand every item, and it should match what you were promised in the sales process. One of the first things to understand when switching to Host Merchant Services is we utilize the most cost effective and fair pricing available in credit card processing. It is called “interchange plus” or “cost plus pricing.” Interchange is a set of rates and fees determined by the card associations (Visa, Mastercard, and Discover). What this means is that our merchants are able to clearly see what interchange categories they qualify for. Here are a few different interchange categories that merchants pay with the same consumer visa credit card. Keep in mind each interchange category has a percentage and a dollar amount included in the category.

Supermarket Credit 1.22% + $0.05
Small Ticket (Transactions under $15) 1.65% + $0.04
Standard Retail / Restaurant 1.51% + $0.10
Charity 1.35% + $0.05
Service Station 1.15% + $0.25
e-Commerce / Mail order & Telephone order 1.80% + $0.10

These examples are based on interchange plus pricing. They also don’t include processor markup, and we have the lowest in the industry! There are other types of pricing that processors will use. You may encounter three-tier pricing (1.79% Qualified, 2.49% mid-qualified, and 3.29% non-qualified) for example. Some merchants are priced flat rate (2.9%, or 2.75%) or flat rate plus surcharges. There is also the dreaded enhanced bill back! Once you understand your pricing and category you need to look at how you are accepting your credit cards. Credit cards that are taken face-to-face (card present) often cost less than cards that are taken over the phone or on the Internet (card not present). For example, retail swiped transaction of 1.51% versus an e-Commerce transaction of 1.80%. Card associations justify this increased interchange rate due to transactions not being face-to-face. The next step in saving money is learning how much money is currently being spent on average to take in each dollar on credit cards. This is called your effective rate. This is calculated by totaling all the money you are paying in fees divided by the total amount your business processes in sales and refunds. For example a merchant who pays $300 in fees to bring in $10,000 in credit cards has an effective rate of 3.00% ($300 / $10,000 x 100 = 3.00%). A few other pieces of information are important to solving the puzzle. The average ticket or average transaction amount is also critical to understanding your rates. The reason being is that a $.20 transaction fee is not a substantial amount of an average ticket of $100 ($.20 / $100 = 0.20%). However, take that same transaction fee on an average ticket of $10 ($.20 / $10 = 2.00%). This goes to show that merchants with larger average tickets pay lower effective rates on average. Lastly we want to look at other fees; many processors will charge monthly fees, statement fees, administrative fees, regulatory and product fees, PCI fees, and annual fees. Host Merchant Services will help you save money on these fees as well! You can learn more about this process through our Official Host Merchant Services Road to Savings Infographic. The best way to start the process is to have one of our industry experts analyze a current merchant statement. We will walk you through the confusing process by explaining what you are currently paying versus what you would pay with HMS. Along with the potential to save hundreds to thousands of dollars each year on your credit card processing, we’ve upped the ante with our new $100 Challenge.

Call us today at (877) 517-4678 and let us design a solution that dramatically improves your bottom line – we guarantee it!

Small Business Saturday: Nov. 24th

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Today, the Official Merchant Services Blog shines a light on a little known holiday that falls between Black Friday, and Cyber Monday called Small Business Saturday.

Since Host Merchant Services has many small businesses in its customer base, we wanted to take a moment to spotlight this newer day of shopping focus and frenzy. This is the third year that American Express is promoting Small Business Saturday, which encourages consumers to shop from small, local businesses on Nov. 24.

The Basics

First of all, what is Small Business Saturday? It is a shopping holiday created by American Express, held on the Saturday after Thanksgiving during one of the busiest shopping periods of the year. It’s not that old. It was first celebrated on November 27, 2010. Small Business Saturday is designed to be a counterpart to Black Friday and Cyber Monday –– which feature big box retail and e-commerce stores respectively. Small Business Saturday encourages holiday shoppers to patronize smaller, local retail businesses.

Benefits For Consumers

The most basic perk to the Small Business Saturday campaign is that it gives money back to consumers for shopping at local small businesses. As defined by American Express at their Small Business Saturday Page here: “You can receive a one-time $25 statement credit when you register any eligible American Express® Card and use that Card to make a purchase of $25 or more at a small business on November 24, 2012.”

Benefits For Merchants

A survey by American Express found 93% of consumers believe shopping at small businesses is important, and are backing that sentiment up by spending about a third of their discretionary income at local small businesses. This prompted AMEX to initiate the campaign in the first place. And if you are a small business merchant, AMEX is going the extra mile to get you involved in the perks and promotions of this holiday.

Even if you are a late-comer to this event, there is still quite a lot of value to be had from participating in Small Business Saturday. The $25 credit program applies no matter what else you do. But there’s also these amazing resources still available:

  • From AMEX you can get free in-store signage, and a free online marketing kit.
  • AMEX also offers a free personalized ad, which geo-targets potential customers
  • You can use AMEX’s Go Social app to create mobile-based deals for your American Express card-wielding customers.
  • A joint venture from Google and YouTube offers up My Business Story which lets you create custom videos using YouTube’s editing tool to entice your customers.
  • For inspiration, you can even view some Small Business Saturday Success Stories on American Express’s website.

Too Early To Tell?

So what do you think? Will Small Business Saturday catch on? Cyber Monday seems to be gaining some traction, fueled by the rapid growth in online shopping and e-commerce, and standing on the precipice of a predicted boom in mobile payment business. Black Friday is still going strong, with big chains like Toys”R”Us and BestBuy fueling it year in and year out. Is there room for Small Business Saturday? Are you a small business merchant and have you participated in this event last year? Will you be doing it this year? Feel free to share you thoughts and insights on this bold campaign from AMEX.

AmEx To Refund $85 Million To Customers

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For this edition of the Official Merchant Services Blog, we take a look at yet another case of troubling consumer card practices.  Last week, we covered the news that Discover had been hit with a $200 million dollar fine by the U.S. Government for deceptive practices. Just today, American Express entered into a settlement with Bank Regulators, involving the company’s missteps in U.S. card practices.

American Express reached a settlement with several regulatory agencies to resolve previously disclosed card practices problems involving several of the company’s subsidiaries. The Federal Deposit Insurance Corporation (FDIC), Consumer Financial Protection Bureau (CFPB), Board of Governors of the Federal Reserve System (FRB), Office of Comptroller of the Currency (OCC), and Utah Department of Financial Institutions (UDFI) all agreed upon the settlements with AmEx.

The regulators cited violations including those relating to certain aspects of debt collection practices, credit card solicitations, late fee charges, the reporting of disputes to credit bureaus and new account approval processes. Reportedly, American Express has cooperated fully with the FDIC, CFPB, FRB, OCC, and UDFI. The company is strengthening its internal compliance processes and will continue to work closely with its regulators.

The settlement includes plans for developing a remediation process for each of the cited violations and an agreement to pay fines totaling $27.5 million. In accordance with the settlement, the company will establish funds totaling $85 million for customer refunds through its subsidiaries. The majority of those refunds are related to debt collection practices and late fee charges. Impacted customers will be notified as soon as possible.

Some of the subsidiaries involved include American Express Centurion Bank; American Express Bank, FSB; and American Express Travel Related Services Company, Inc.

If you are an AmEx customer, be on the lookout for any notifications that may imply you are entitled to a refund.  We will keep an eye on this story, as well as any other settlements for malicious card practices involving major U.S. Credit Card companies that may arise.

Industry Terms: AVS

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This is the latest installment in The Official Merchant Services Blog’s Knowledge Base effort. We want to make the payment processing industry’s terms and buzzwords clear. We want to remove any and all confusion merchants might have about how the industry works. Host Merchant Services promises: the company delivers personal service and clarity. So we’re going to take some time to explain how everything works. This ongoing series is where we define industry related terms and slowly build up a knowledge base and as we get more and more of these completed, we’ll collect them in our resource archive for quick and easy access. Today’s term is the Address Verification System, or AVS.

The system was designed by card issuers to aid in the detection of suspicious credit card transaction activity, and verify that the cardholder’s address info matches what the banks have on file. The service is provided as part of a credit card authorization for mail order/telephone order transactions (MOTO) or Internet e-commerce transactions.  A code is received with an authorization result that determines the level of accuracy of the address match. This verification helps secure the most favorable interchange rates for the merchant.

Visa, MasterCard, Discover, and American Express support this service, and when paired with a CVV confirmation the result is a secure, verified transaction. To verify a customer’s address, a merchant will need the cardholder’s billing ZIP code and the house or apartment number of the billing address.  The merchant does not need to enter in the street, city or state of the cardholder.  While AVS is not intended for use as absolute protection against suspicious transaction activity, it is an important step in securing non-face-to-face transactions. Host Merchant Services recommends to all merchants that they secure these types of orders with both AVS and CVV.