The rewards of American Express

A German national arrived at the Ninoy Aquino International Airport on a holiday. He dropped his belongings to hail a cab. The next thing he knew, his holiday turned into a nightmare–his baggage, along with his passport and all his money and cards, were stolen. He spoke very little English and felt utterly helpless until a policeman helped him contact the local American Express office.

"Without my know-ledge, my staff brought him to a hotel in Malate, took him out for drinks that night, and left P4,000 to tide the German over through the night," said Ian Fish, vice-president and country manager of American Express International Inc. "The following day, the German got his American Express card replaced and returned the money to the staff. That is the kind of service we are known for."

Fish is very proud of the service his company offers. "That must be the reason why, even through trying times, we are still here in the Philippines after 35 years."

Beginnings

American Express began in the United States as a freight company in 1916 and later expanded into credit card and travel. The company also pioneered the rewards program, where the purchases of cardholders are given points, which can be exchanged for airline tickets, hotel accommodations and gifts.

Unlike other companies, however, the American Express rewards system does not expire.

"This engenders loyalty, which is the cornerstone of our marketing efforts," said Fish.

As part of its marketing strategy, the company is very selective in issuing cards.

"We issue cards by invitation," said Fish. "This is because of the unparalleled service it offers. A green cardholder is entitled to $200,000 worth of flight insurance while the gold cardholder has a $300,000 insurance. A $1 million coverage is given to platinum cardholders. All cards do not have a credit limit and the company does not charge interest, except for late payment charges."

The insurance is not the only benefit of the platinum card. Similar to other cards catering to the wealthy, it offers concierge service 24 hours of the day, seven days of the week. A lost card can be replaced in three hours. All transactions are kept confidential, even from the cardholder’s spouse.

Expansion

One of the segments American Express is giving focus to is the traveler’s check. Non-cardholders can avail of traveler’s checks, which do not expire, come in several currencies, can be cashed in 65 different locations in the world, and come in checks for two.

"The checks for two allows two people to sign on the check, so either of them can cash it," said Doris Cotaoco, account manager for global traveler’s checks and prepaid services. American Express accounts for 90% of the traveler’s checks market in the Philippines.

The company posted a 3% growth last year and expects a similar growth rate this year.