American Express: Press Center

American Express Redefines Premium with The New Platinum Card®

Thu, 02 Mar 2017 00:00:00 -0500

American Express today announced a new generation of benefits for its iconic Platinum Card. The benefits are built for today’s global travelers who enjoy exclusive access, unique experiences and best-in-class service whether they’re traveling across the globe or in their home city.

Starting on March 30, 2017, consumers with The Platinum Card^® will receive exclusive access in the Uber app to a new Uber Rides with Platinum benefit, which provides up to $200 annually in Uber credits for U.S. rides and automatic VIP status where available. Platinum Card Members will also receive 5X Membership Rewards points on eligible hotels booked on amextravel.com. This is in addition to the recently unveiled 5X Membership Rewards points on airfare booked directly with airlines or American Express Travel. Card Members will also get access to an expanded Global Lounge Collection, a new Global Dining Collection, more global events, enhanced mobile servicing options, and all of the other benefits that currently come with Platinum Card Membership.

“Because we’ve built long term relationships with our Platinum Card Members, we have a deep understanding of what they value most about their Membership – access to exclusive experiences, rich travel rewards and superior service,” said Janey Whiteside, senior vice president and general manager of Global Charge Products, Benefits & Services, American Express. “We’re elevating the Platinum Card to further deliver in these key areas, while providing new benefits that enhance their lifestyles. We want to ensure that we’re continually exceeding our Card Members’ expectations.”

Uber Rides with Platinum
American Express is deepening its relationship with Uber, a service regularly used by a large portion of American Express Card Members. Through the new Uber Rides with Platinum benefit, which is delivered in an exclusive Uber in-app experience, Platinum Card Members will receive up to $200 in annual Uber credits for rides within the United States as well as Uber VIP status where available. Card Members will receive $15 in Uber credit per month, with an additional $20 bonus in December, when they add their American Express Platinum Card as a payment method to the Uber app.

“This premium, first-of-its-kind benefit gives Platinum Card Members another reason to use Uber – a reliable, safe way to travel in 450 plus cities around the world," said Emil Michael, Chief Business Officer, Uber. "We’re excited to continue to expand our longstanding partnership with American Express to provide even more Card Members with valuable rewards and VIP treatment when they ride with Uber.”

The Next Generation of Platinum Card Membership
In addition to the new Uber benefit, American Express has redesigned the Platinum Card to give Card Members a complete range of benefits they can rely on at every step of their journey.

5X Membership Rewards: In addition to the recently unveiled 5X points for flights when booked directly with airlines or American Express Travel, Card Members will be able to receive 5X Membership Rewards points for eligible hotels booked on amextravel.com.
Expansion of the Global Lounge Collection: Platinum Card Members have access to the growing Global Lounge Collection, which provides access to the most airport lounges from any U.S. credit card. The Global Lounge Collection unlocks access to more than 1,000 American Express and partner airport lounges, in more than 500 cities, across 120 countries, including future Centurion Lounge locations in Hong Kong and Philadelphia scheduled to open later this year.
Complimentary Additional Gold Cards: Platinum Card Members will be able to add Additional Gold Cards on their Platinum Card Account for no annual fee and existing Additional Gold Cards will also have no annual fee. Card Members can earn Membership Rewards points for all eligible purchases made by their Additional Card Member(s).
Access to a new Global Dining Collection: American Express has partnered with world-renowned chefs, including Thomas Keller, Daniel Humm, Stephanie Izard and José Andrés, to provide Platinum Card Members with access to one-of-a-kind dining experiences like the EMP Summer House in the Hamptons, a pop-up restaurant from the Eleven Madison Park team exclusively available for American Express Card Members. Card Members will also get access to exclusive reserved seating, culinary events and other exciting benefits.
More Global Events: American Express is expanding its By Invitation Only® program to include more Card Member experiences in top destinations around the world, such as premium access to the Grand Prix de Monaco, an enthusiast’s dream trip through French wine country and a global fashion tour with Harper’s Bazaar to celebrate the iconic magazine’s 150th Anniversary.
Continued value at Fine Hotels and Resorts: Platinum Card Members can receive valuable benefits including complimentary daily breakfast for two and guaranteed 4PM late checkout offering an average total value of $550 whenever they book at a Fine Hotels and Resorts property with American Express Travel.
New Card Design: In addition to the enhanced benefits for Platinum Card Members, American Express is introducing a new, sleek metal Card design.

These are part of a growing roster of benefits that Platinum Card Members can already take advantage of including: up to $200 Airline Fee Credit that can be used for incidental fees such as baggage on a selected airline each year, Starwood Preferred Guest^® Gold Status and Hilton Honors™ Gold Status, access to the Delta Private Jet program, complimentary access to Wi-Fi hotspots provided by Boingo Wireless, a Fee Credit for Global Entry or the TSA Pre✓^® program application and no foreign exchange fees.

True to the brand’s heritage of service, American Express is also bringing personalized service to Card Members’ pockets by offering Platinum Card Members seamless access to concierge, travel and Customer Care Professionals through the Amex Mobile app. Also coming to the app is a lounge finder feature that will easily allow Card Members to find one of the 1,000 plus lounges in the Global Lounge Collection when they are on the go.

Beginning on March 30, the new annual fee for the Platinum Card will be $550. For existing Platinum Card Members, the new annual fee will take effect on Card Members’ annual renewal date on or after September 1, 2017.

Terms and Limitations apply. More information about these new benefits can be found at: americanexpress.com/platinumupdate.

About American Express
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, foursquare.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.

Key links to products, services and corporate responsibility information: charge and credit cards, business credit cards, Plenti rewards program, travel services, gift cards, prepaid cards, merchant services, Accertify, corporate card, business travel and corporate responsibility.

U.S. Small and Medium Enterprises Optimistic About Business Prospects in 2017 and Beyond, According to New Global Research from American Express

Thu, 16 Feb 2017 00:00:00 -0500

Small and medium-sized enterprises (SMEs) in the U.S. and worldwide are optimistic about the economy and confident about their future business performance, according to the inaugural American Express Global SME Pulse.

The new survey of senior executives and decision makers from SMEs across 15 countries reveals these businesses in the U.S. are even more optimistic about the global economy than their foreign counterparts. More than half of U.S. executives (54%, vs. 39% overall) are positive about the global economic outlook over the next 12 months. When asked to consider the local economic environment, they are even more upbeat, as nearly six in ten are positive (59% vs. 45% overall).

Executives are also confident in their ability to deliver increased revenues and profitability. More than two thirds of the U.S. SMEs surveyed (69%, vs. 58% overall) expect significant revenue growth of at least 4 percent over the next 12 months. Forty two percent anticipate revenue growth of at least 8 percent over the same period, double that of SMEs worldwide (21%). In terms of profitability, U.S. SMEs are also upbeat, with thirty five percent forecasting a net profit of at least 8 percent per annum over the next three years. U.S. SMEs say their most important strategy to grow domestic revenue is more effective marketing and sales to domestic customers (48%), followed closely by understanding changing customer demands (46%).

“Small and medium-sized enterprises have put strategies in place to grow product and service innovations, quickly respond to changing business demands and develop and retain skills and talent to help them thrive,” said Brendan Walsh, Executive Vice President, Global Commercial Payments, American Express. “They are confident about and invested in the future of their businesses.”

While SMEs are optimistic about the economy and their own business, they also recognize areas for concern. Nearly half (47%) rank economic uncertainty as the greatest external threat to their business. SMEs also identify political uncertainty (31%) and changes to domestic policies, laws or regulations as a key threat (24%).

SMEs take on new strategies to enhance innovation
U.S. SMEs also find themselves addressing challenges that will have a longer term impact on their businesses. Nearly three quarters (73%) identify developing and implementing innovations as the challenge they will work hardest to address over the next three years. To improve innovation, companies identify different approaches they are currently taking or will use in the future, including:

Encouraging all staff to contribute ideas (68%)
Incorporating customer feedback into the research and development process (67%)
Encouraging an innovative culture by accepting challenge and risk (66%)
Employing talented innovators (65%)
Creating innovation taskforces within the organization (62%)
Allocating staff time for idea generation (62%)
Investing more in R&D (62%)

SMEs are focusing on expansion and sales growth
Despite uncertainty, SMEs are focusing on growth and expansion strategies to improve their financial performance. More than one third of U.S. SMEs say growing their share within existing markets and expansion into new domestic markets will most contribute to their businesses’ financial performance over the next three years (each, 36%). Fewer believe expanding into new international markets will be a contributor to financial performance (27%).

As they look to expand, many SMEs encounter difficulty when trying to access the financing required for growth. Six in ten businesses (60%) say they face difficulty accessing the financing they need to grow their business. More than three quarters (78%) are satisfied to some degree with the current financing options available to their business.

Today, most U.S. SMEs rely on bank loans (58%) and existing working capital (50%) to fund their investments. Over the next year, SMEs plan to take advantage of a diverse set of funding options. Bank loans and existing working capital will remain important, but many SMEs will also be looking to non-bank sources of finance such as private equity (36%), crowdsourcing (35%), existing working capital and flexible access to funds such as credit cards (each, 33%).

Survey Methodology
Oxford Economics carried out a telephone survey among 3205 owners, executive board members (including Chief Executives, Chairmen, Managing Directors, General Managers) and Chief Financial Officers / Heads of Finance in SMEs with between 10 and 250 employees and revenues of up to $30 million. The companies were based in 15 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Singapore, Spain, UK and USA. The survey interviews were conducted October 24 - November 29, 2016. The margin of error for the global survey is 1.73% at the 95% level of confidence. In the United States 300 leaders from SMEs participated in the study. The margin of error for the United States is 5.64% at the 95% level of confidence.

About American Express Global Commercial Payments
Through its Global Commercial Payments division, American Express offers a suite of payment and lending products that help businesses and organizations of all sizes gain financial savings, control and efficiency. Global Commercial Payments provides solutions for travel and everyday business spending, cross border payments, global currency solutions, and business financing.

To learn more about Global Commercial Payments visit business.americanexpress.com

To learn more about American Express OPEN, which provides products and services for small businesses and entrepreneurs in the United States, visit www.OPEN.com

American Express Executive to Participate in KBW Cards, Payments & Financial Technology Symposium; Company Plans Live Audio Webcast of Annual Investor Day

Tue, 14 Feb 2017 00:00:00 -0500

American Express (NYSE:AXP) President of Global Consumer Services, Douglas E. Buckminster, will participate in the Keefe, Bruyette & Woods (KBW) Cards, Payments & Financial Technology Symposium in New York City, on Monday, February 27, 2017, at 9:40a.m. (ET). Mr. Buckminster will take part in a question and answer session relating to the company’s global consumer and network businesses.

American Express Company plans to host its annual Investor Day on Wednesday, March 8, 2017 at 1:00 p.m. (ET). At the meeting, senior executives will discuss key business trends, initiatives and long-term strategies. Speakers are scheduled to include:

Kenneth I. Chenault, Chairman and Chief Executive Officer
Douglas E. Buckminster, President of Global Consumer Services
Stephen J. Squeri, Vice Chairman
Anré D. Williams, President of Global Merchant Services & Loyalty Group
Jeffrey C. Campbell, Executive Vice President and Chief Financial Officer

A live audio webcast of both events will be accessible to the general public through the American Express Investor Relations website at http://ir.americanexpress.com. Presentation materials will be posted on the website prior to the Investor Day meeting and an audio replay will be available on the website following each of the events.

American Express Takes Its Premium Airport Lounge Program Global; The CENTURION® Lounge Coming to Hong Kong and Philadelphia in 2017

Tue, 31 Jan 2017 00:00:00 -0500

Today, American Express (NYSE:AXP) announced plans to bring its signature airport lounge program global, with the introduction of a new location of The Centurion Lounge in Terminal 1 of the Hong Kong International Airport (HKG), as well as a location in the Philadelphia International Airport (PHL) later this year. In addition, the existing location in Seattle-Tacoma International Airport (SEA) will be significantly expanded in the coming months.

“We’re thrilled to bring our best-in-class Centurion Lounge to Hong Kong, one of the most popular travel destinations in Asia among our premium Card Members,” said Janey Whiteside, senior vice president and general manager of Global Charge Products, Benefits & Services, American Express. “We’re also looking forward to continuing to expand our Centurion Lounges in the U.S. with the addition of a new location in Philadelphia. Philadelphia International is one of the most trafficked airports for our Card Members, as we’ve seen a ten percent increase in travel into Philadelphia in the past year alone,” said Whiteside.

The new Centurion Lounge will be located in Terminal 1 of the Hong Kong International Airport (HKG). The more than 8,000 square foot lounge will offer an escape for Card Members visiting the busy global travel hub and feature a unique selection of premium amenities, food and beverages.*

The new 6,300 square foot Centurion Lounge in Philadelphia International Airport will be located in Terminal A West and will offer amenities such as a complimentary premium bar and food menu featuring a selection of local Philadelphia favorites, floor-to-ceiling windows with expansive internal and external views, premium bathrooms and a private shower suite, as well as access to complimentary Wi-Fi and noise-buffering workspaces.

As Seattle continues to grow as a travel destination for premium Card Members, with a 12 percent increase in air travel into Seattle the past year, American Express will also be expanding the existing Seattle-Tacoma International Airport lounge location by 1,400 square feet, to bring the total space to 4,500 square feet, and which will include the addition of a private shower suite, more restrooms, a full premium bar, expanded seating and spectacular views of Mount Rainier. This expansion will build on the existing Concourse B location opposite from Gate B3, and is expected to be completed the first half of 2017.

Each Centurion Lounge location features a unique selection of exceptional amenities designed to anticipate travelers’ needs. Complimentary chef-crafted food menus, premium wines and specialty cocktails from top sommeliers and mixologists, access to high-speed Wi-Fi, premium restrooms and showers, power outlets, and private noise-buffering work stations, are just some of the examples of the world-class services guests can find within a luxurious and contemporary setting.

The Centurion Lounge network is the signature program within the broader American Express Global Lounge Collection^SM – an exclusive benefit for American Express Centurion and Platinum Card Members. The Global Lounge Collection provides our Card Members with access to the most lounges across the globe from a U.S. credit card, including access to more than 1,000 lounges around the world, in 500 plus cities, across 120 countries and counting. In addition to The Centurion lounge network, the Global Lounge Collection also includes access to International American Express lounges, Delta Sky Club® for Card Members flying on Delta, Priority Pass^TM Select Lounges upon enrollment, and Airspace Lounges. Card Members can find a lounge at the Global Lounge Collection website.

*Must be of legal drinking age to consume alcoholic beverages. Please drink responsibly.

**Metrics provided by American Express Travel

Jackson Hewitt® and American Express Serve® Give Clients Access to Federal Refunds Up to Two Days Earlier

Thu, 26 Jan 2017 00:00:00 -0500

Jackson Hewitt Tax Service® todayannounced that American Express Serve continues to be an option for clients to receive their tax refunds and manage their money. Clients can load their IRS tax refund for free onto an American Express Serve Card. When they do, they will have access to their federal refund up to two days earlier than a standard electronic deposit from the IRS¹.

American Express Serve is a full-service, reloadable prepaid Account with money management tools. There are no hidden fees and no minimum balance is required.

“With American Express Serve our clients can get free, early direct deposit of IRS refunds, plus the benefits of American Express Serve,” said David Prokupek, co-CEO of Jackson Hewitt. “This Card helps our clients make their tax refund work harder for them.”

Additional features of American Express Serve include:

Free ATM withdrawals at more than 24,000 MoneyPass® ATMs nationwide²
Pick up your tax refund in cash at over 4,500 Walmart® stores with Cash Pickup Powered by Ria® ³
Cash your checks in minutes through Mobile Check Capture by Ingo® Money with using the Serve Mobile App⁴

“We know how important the tax refund is for millions of Americans,” said Stefan Happ, Executive Vice President, Global Prepaid & Alternative Payments, American Express. “We’re excited to continue to team up with Jackson Hewitt to give their clients a smart, fast and convenient way to receive their refund.”

For more information about American Express Serve, visit https://serve.com/jacksonhewitt/.

Terms and conditions apply to all offers. To find a local Jackson Hewitt location or learn more about its products and promotions, visit www.JacksonHewitt.com.

About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. is an innovator in the tax industry, with a mission of offering its hard-working clients access to simple, low-cost solutions to manage their taxes and tax refunds. With more than 25,000 professional tax preparers, Jackson Hewitt is devoted to helping clients get ahead with Maximum Refund and 100% Accuracy Guarantees. Jackson Hewitt is the fastest-growing full-service tax preparation company with approximately 6,000 franchised and company-owned locations, including 3,000 in Walmart stores, and online and mobile tax solutions. For more information about products, services and offers, or to locate your neighborhood Jackson Hewitt office, visit www.JacksonHewitt.com or call 1 (800) 234-1040.

¹Faster access compared to standard tax refund electronic deposit and subject to IRS submitting refund information to the bank before release date. IRS may not submit refund information early.

²Transactions at non-MoneyPass® ATMs have a $3.50 American Express Serve fee. ATM operator fees may also apply. See serve.com/atm for details.

³The Serve Cash Pickup service is provided by Ria (defined below) pursuant to Ria's Terms and Conditions and Ria’s Privacy Policy and the Serve Consumer User Agreement and is subject to all applicable laws and regulations. Pickup is available in all 50 United States and Puerto Rico. For tax refunds or refund advances that are Direct Deposited to your Account, the daily Cash Pickup limit will be the lesser of (i) $2,900 and (ii) the tax funds amount, until you have withdrawn the tax funds amount (Arizona Accountholders are only eligible for a $900 daily Cash Pickup limit). Otherwise, a $900 daily Cash Pickup limit applies. Per transaction limit of $499.99 applies to withdrawals picked up in Arizona. Fee of $3.49 for each withdrawal up to $500, $6.49 for each withdrawal of $500.01- $900, and $9.49 for each withdrawal of $900.01-$2,900 applies. Other limits and terms and conditions apply. Visit serve.com/jacksonhewitt/cashpickup for complete details.

Ria is a registered trademark of Continental Exchange Solutions, Inc. dba Ria Financial Services, licensed as a Money Transmitter by the Department of Financial Services of the State of New York; licensed by the Georgia Department of Banking and Finance, NMLS ID 920968; and authorized independently or through its affiliate, Ria Financial Services Puerto Rico, Inc. OCIF LICENSE NUMBER TM-2014-031, to operate as a Money Transmitter in all United States' jurisdictions where it conducts business. American Express Travel Related Services Company, Inc. is not responsible for Ria’s acts or omissions in its provision of Serve Cash Pickup services.

Serve Cash Pickup orders can be picked up during Walmart store hours (typically 8:00 a.m. to 8:00 p.m. Monday through Saturday and 10:00 a.m. to 6:00 p.m. Sunday, but hours may vary) at any Walmart MoneyCenter or customer service desk in the State or territory you specified in your order. To pick up your Serve Cash Pickup order, you must present a valid government-issued photo ID and pickup reference number. You will be required to provide proof of address if your ID does not contain your address or contains a P.O. Box.

⁴The Mobile Check Capture by Ingo Money service is provided by First Century Bank, N.A. and Ingo Money, Inc., subject to the First Century Bank and Ingo Money Terms and Conditions and the First Century Bank and Ingo Money Privacy Policy. All checks are subject to approval for funding at Ingo Money’s sole discretion. Approval usually takes 3 to 5 minutes but can take up to one hour. Fees apply for approved Money in Minutes transactions funded to your Account. See serve.com/jacksonhewitt/fees for details. Additional terms and conditions and limits are associated with your use of the Mobile Check Capture by Ingo Money service through the Serve Mobile App. See serve.com/jacksonhewitt/legal for details. Data rates may apply.

American Express Company Elects John Brennan to Board of Directors

Tue, 24 Jan 2017 00:00:00 -0500

American Express Company (NYSE:AXP) today announced that John J. “Jack” Brennan has been elected to its board of directors.

Mr. Brennan is chairman emeritus and senior advisor of Vanguard, one of the world’s largest and most respected investment companies. He joined Vanguard in 1982, was elected chief financial officer in 1985 and president in 1989. He served as Vanguard’s chief executive officer from 1996 to 2008 and chairman of the board from 1998 to 2009.

“Jack’s accomplishments at Vanguard and his insights into financial markets, along with his regulatory and corporate governance expertise make him a terrific addition to the Board,” said Kenneth I. Chenault, chairman and chief executive officer.

Mr. Brennan is a director of General Electric Company, LPL Financial and the Guardian Life Insurance Company of America. He is the chairman of the Financial Industry Regulatory Authority (FINRA); chairman of Vanguard Charitable; and chairman of the Board of Trustees at the University of Notre Dame.

Mr. Brennan graduated from Dartmouth College and earned a master’s degree in business administration from the Harvard Business School.

The election of Mr. Brennan to the American Express Company Board of Directors is effective today.

American Express Declares Dividend On Series C Preferred Stock

Tue, 24 Jan 2017 00:00:00 -0500

American Express Company (NYSE: AXP) yesterday declared a semiannual dividend on the Company’s 4.900% Fixed Rate / Floating Rate Noncumulative Preferred Shares, Series C, of $24,500 per share (which is equivalent to $24.50 per related Depositary Share).

The dividend is payable on March 15, 2017 to shareholders of record on March 1, 2017.

About American Express
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com, and connect with us on facebook.com/americanexpress, foursquare.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.

American Express Reports Full Year 2016 EPS Within Guidance Range; Fourth Quarter EPS of $0.88 Reflects Solid Loan Growth and Card Member Spending Along with Higher Investment Levels; Revenue Performance Improves Sequentially; Company Expects 2017 EPS of $5.60 to $5.80

Thu, 19 Jan 2017 00:00:00 -0500

American Express Company (NYSE: AXP) today reported fourth-quarter diluted earnings per share of $0.88, down 1 percent from $0.89 a year ago. Excluding a restructuring charge related to cost reduction efforts, adjusted diluted earnings per share was $0.91.²

Fourth-quarter net income was $825 million, down 8 percent from $899 million a year ago.

The current quarter included higher spending on growth initiatives, largely reflected in marketing and promotion expenses. The company showed significant progress on its plans to reduce its cost base by $1 billion. Credit quality remained strong, and the company continued to return a substantial amount of capital to its shareholders through share repurchases and dividends.

Fourth-quarter consolidated total revenues net of interest expense were $8.0 billion, down 4 percent from $8.4 billion a year ago. Excluding last year’s Costco-related business and the effect of foreign exchange rates due to the impact of a stronger U.S. dollar on international operations during the quarter, adjusted revenues net of interest expense increased 6 percent.³ That increase primarily reflected higher adjusted Card Member spending and adjusted net interest income.

Consolidated provisions for losses were $625 million, up 9 percent from $572 million a year ago, primarily reflecting higher loan growth. The prior year included credit costs associated with cobrand portfolios that were subsequently sold. Excluding the impact of those portfolios, adjusted provisions for losses increased 20 percent,⁴ primarily reflecting higher loan growth and a slight increase in both lending delinquency and net write-off rates.

Consolidated expenses were $6.2 billion, down 2 percent from $6.4 billion a year ago. The prior year included an impairment and restructuring charge of $419 million ($335 million after-tax) as well as Costco-related rewards costs. The current quarter reflected substantially higher levels of investment spending on growth initiatives and a $50 million ($32 million after-tax) restructuring charge mentioned above.

The effective tax rate for the quarter was 29 percent, down from 38 percent a year ago. The decrease primarily reflected the resolution of certain prior years’ tax items in the current period, and non-deductible impairment charges in the prior period.

The company’s return on average equity (ROE) was 26.0 percent, up from 24.0 percent a year ago.

For the full year, the company reported net income of $5.4 billion, up 5 percent from $5.2 billion a year ago. Diluted earnings per share was $5.65, compared to $5.05 a year ago. Excluding restructuring charges related to cost reduction efforts, adjusted diluted earnings per share was $5.93.² Earnings for the full year were within the company’s 2016 guidance range.

Revenues net of interest expense for the full year decreased 2 percent to $32.1 billion, from $32.8 billion a year ago. Excluding last year’s Costco-related business and the impact of foreign exchange rates, adjusted revenues net of interest expense increased 5 percent.³

For the full year, consolidated expenses decreased 4 percent to $22.0 billion from $22.9 billion a year ago.

“At the start of 2016 we said we would move with a strong sense of urgency to change the trajectory of our business,” said Kenneth I. Chenault, chairman and chief executive officer. “The results we’re reporting today reflect substantial progress on that commitment. Revenue performance strengthened sequentially and showed year-over-year growth on an adjusted basis. We are ahead of plans to reset our cost base and improve our operating efficiency. We were able to make substantial investments to capitalize on opportunities in the marketplace and strengthen our competitive position.

“Earnings per share for 2016 were well above the range we provided at the start of the year and consistent with our revised outlook from last quarter. Our underlying business performance gave us the flexibility to significantly ramp up marketing and promotion initiatives that have been targeted to provide a mix of returns over the short, medium and longer term.

“Card Member spending (adjusted for Costco and the impact of foreign exchange rates) grew 7 percent in the fourth quarter. That increase reflects continued strength in our international markets, accelerated growth among small and mid-sized companies and strong long-term relationships with higher spending consumers. We continued to grow our lending portfolio faster than the market while maintaining industry-leading credit metrics. We acquired over 10 million new cards globally last year, and we added more than a million new merchants to our network in the United States alone.

“While we continue to operate in a very challenging environment, we ended the year in a stronger position than we started and have built momentum across our business. There is still more work to do, but given our progress to date, we expect EPS for 2017 to be between $5.60 and $5.80. That outlook is built on a set of priorities designed to put us in a strong position for 2018 and the years ahead.”

Segment Results

U.S. Consumer Services reported fourth-quarter net income of $351 million, down 35 percent from $541 million a year ago. The year-ago period included Costco-related revenues, provisions and expenses.

Total revenues net of interest expense decreased 10 percent to $3.0 billion, from $3.4 billion a year ago.

Provisions for losses totaled $363 million, up 9 percent from $334 million a year ago. The increase primarily reflected higher loan growth and a slight increase in both lending delinquency and net write-off rates.

Total expenses were $2.2 billion, down 1 percent. The current quarter included substantially higher investment spending on growth initiatives. The year-ago quarter included Costco-related rewards costs.

The effective tax rate was 27 percent compared to 35 percent a year ago, driven primarily by the impact of recurring permanent tax benefits on lower levels of pre-tax income and the resolution of certain prior years’ tax items.

International Consumer and Network Services reported fourth-quarter net income of $84 million, down 40 percent from $140 million a year ago, primarily reflecting higher investment spending on growth initiatives.

Total revenues net of interest expense were $1.4 billion, up 2 percent (up 7 percent FX-adjusted⁵) from a year ago. The increase primarily reflected higher Card Member spending.

Provisions for losses totaled $92 million, up 19 percent from $77 million a year ago, reflecting a slight increase in lending net write-off rates.

Total expenses were $1.2 billion, up 10 percent (up 14 percent FX-adjusted5) from $1.1 billion a year ago. The increase reflected higher investment spending on growth initiatives.

The effective tax rate was (2) percent, compared to 24 percent a year ago. The change versus prior year reflected the impact of recurring permanent tax benefits on lower levels of pre-tax income in the current year.

Global Commercial Services reported fourth-quarter net income of $382 million, down 22 percent from $487 million a year ago. The year-ago period included Costco-related revenues, provisions and expenses.

Total revenues net of interest expense were $2.5 billion, up 1 percent from a year ago, reflecting higher Card Member spending.

Provisions for losses totaled $171 million, up 12 percent from $153 million a year ago.

Total expenses were $1.8 billion, up 14 percent from $1.6 billion a year ago. The increase reflected higher investment spending on growth initiatives, as well as an increase in rewards expenses.

The effective tax rate was 30 percent, down from 36 percent a year ago, driven primarily by the impact of recurring permanent tax benefits on lower levels of pre-tax income and the resolution of certain prior years’ tax items.

Global Merchant Services reported fourth-quarter net income of $369 million, up 1 percent from $364 million a year ago.

Total revenues net of interest expense were $1.1 billion, down 7 percent from $1.2 billion a year ago. The year-ago period included Costco-related revenues.

Total expenses were $560 million, down 10 percent from $621 million a year ago. The current quarter reflected lower fraud expenses, while the prior year included higher investment spending in the Loyalty Coalition business.

The effective tax rate was 34 percent, down from 37 percent from a year ago.

Corporate and Other reported fourth-quarter net loss of $361 million compared with net loss of $633 million a year ago, which included the previously mentioned impairment charge.

About American Express
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com, and connect with us on facebook.com/americanexpress, foursquare.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.

This earnings release should be read in conjunction with the Company’s statistical tables for the fourth-quarter 2016, available on the American Express website at http://ir.americanexpress.com and in a Form 8-K filed today with the Securities and Exchange Commission.

An investor conference call will be held at 5:00 p.m. (ET) today to discuss fourth-quarter earnings results. Live audio and presentation slides for the investor conference call will be available to the general public on the above-mentioned American Express Investor Relations website. A replay of the conference call will be available later today at the same website address.

Media Contact:
Marina H. Norville, marina.h.norville@aexp.com, +1.212.640.2832

Investors/Analysts Contacts:
Ken Paukowits, ken.f.paukowits@aexp.com, +1.212.640.6348
Toby Willard, sherwood.s.willardjr@aexp.com, +1.212.640.5574

American Express Plans Live Audio Webcast of the Fourth Quarter 2016 Earnings Conference Call

Wed, 04 Jan 2017 00:00:00 -0500

American Express Company (NYSE: AXP) plans to host a live audio webcast of its earnings conference call at 5:00 p.m. (ET) on Thursday, January 19, 2017 to discuss fourth quarter and full-year 2016 financial results. The Company's financial results are scheduled to be announced shortly after the market closes that day.

The live audio webcast will be accessible to the general public through the American Express Investor Relations website at http://ir.americanexpress.com. Earnings presentation materials will be posted on the website prior to the conference call and an audio replay will be available on the website following the call.

American Express Announces Artist Pharrell Williams as the Creative Director of the Platinum Card®

Thu, 15 Dec 2016 00:00:00 -0500

Today, American Express (NYSE:AXP) announced that musician, producer, style icon and entrepreneur, Pharrell Williams will serve as the Creative Director of the Platinum Card. As the Creative Director, Pharrell will bring his creative vision and style to inspire and guide the global experiences, access and services that the Platinum Card is renowned for providing.

Pharrell Williams - click to 🔍

As consumers’ tastes and passions evolve, American Express will continue to bring exceptional premium experiences and benefits to its Platinum Card Members across travel, music, dining, fashion, art, wellness and more. Pharrell will set the creative direction for such experiences and events and inspire new cutting-edge collaborations and partnerships that meet the needs of the ever-changing premium consumer lifestyle.

“I’m excited to be partnering with such a globally respected brand as American Express to inspire new innovative and creative premium experiences and work together to enhance the future of the Platinum Card,” said Pharrell Williams.

“We want the Platinum Card and the experiences it offers to be influenced and shaped by our Card Members, so we're thrilled to be working with long-time Card Member and creative visionary Pharrell to lead some of these efforts,” said Janey Whiteside, SVP of Global Charge Products, Benefits and Services at American Express. “Like many of our Card Members, he’s traveled the globe, he has an amazing imagination, and he loves to discover and share new experiences.”

American Express Launches New "Add a Card" Feature for the Amex Bot for Messenger

Mon, 12 Dec 2016 00:00:00 -0500

American Express today announced a new Add a Card feature for the Amex bot for Messenger. This feature helps enable eligible U.S. Consumer and OPEN Card Members to add their Card and billing information to Facebook for purchases on Facebook. After adding a Card to their Facebook accounts, Card Members can easily make in-game purchases, purchases on the Shop sections of business’ Facebook pages and participate in Messenger commerce experiences.

“This most recent step in our long relationship with Facebook demonstrates just how quickly American Express can iterate new features and develop innovation with great partners,” said Dave Wolf, vice president, Digital Partnerships & Development, American Express. “The speed of our tech development continues to allow us to meet our Card Members where they are, and we look forward to the additional benefits we can deliver to Card Members on this powerful channel.”

“This new feature comes as Facebook and Messenger introduce new commerce initiatives,” said Kahina Van Dyke, Facebook’s Director of Global Commerce and Payments Partnerships. “We’ve seen commerce play an increasing role in how people interact with one another and we’re excited to see our partners at AMEX continue to create new ways to enable people to make seamless purchases with this new Add a Card feature.”

American Express has worked closely with Facebook to ensure that Card Member account data is provided to Facebook via the Amex bot for Messenger in a safe and secure manner.

To enable the Amex bot for Messenger, Card Members can connect an eligible Card to Messenger at m.me/AmericanExpressUS by using their AmericanExpress.com user ID and password. Card Members can easily add their Card to Facebook by choosing to do so when connecting their eligible Card to Messenger.

Key links to products and services: charge and credit cards, business credit cards, Plenti rewards program, travel services, gift cards, prepaid cards, merchant services, corporate card, business travel and corporate responsibility.

Near, Far, and Everywhere in Between for 2017: Amex Travel Unveils Destinations & Discoveries for the Global Traveler

Mon, 12 Dec 2016 00:00:00 -0500

From a more concierge-like approach to travel servicing and an increased focus on hotel design to the implications of a post-Brexit surge, American Express Travel experts have uncovered trends that will likely impact the state of luxury travel in 2017 based on qualitative, in-depth industry observations and internal data analysis.

“Today, affluent consumers are more knowledgeable, are often in control of their travel experiences and across all ages, are in pursuit of curation, comfort and convenience,” says Claire Bennett, executive vice president, American Express Travel. “Whether they seek added value from a flight upgrade, a recommendation for the best new restaurant in London or are traveling more often and for longer stays, consumers know what they want, and are becoming savvier about making their needs known to travel brands.”

According to American Express Travel experts, the following are trends likely to continue into 2017:

TRAVEL AGENTS, THE NEW CONCIERGES
Personalization and streamlined service are key motivators for today’s luxury traveler – who expect immediate, one-stop-shop, customized travel experiences. “We’re seizing this growing demand by cultivating a team of lifestyle experts with unparalleled relationships and in-depth industry knowledge that can offer today’s savvy global traveler elements of the trip beyond air and hotel – from VIP access to local insights on the newest restaurants to one-of-a-kind, extraordinary experiences,” says Bennett.

A MOVE TOWARDS THE FRONT
As increasing elements of the flying experience have become revenue streams for airlines, from boarding times and seat preferences to lounge access and baggage allowance, there has been a significant uptick in first-class bookings, increasing 208% YOY. “We’ve noticed that weary air travelers are opting for the convenience and value of paying one first-class fare to get it all, enhancing their overall experience and making first-class air travel the new version of the luxury all-inclusive frontier,” says Bennett.

EXTENDED EXPLORERS EMERGE
“Four times per year, for four nights – in and out – has been the tried and true American travel pattern. Today, however, we’re seeing a new American traveler emerge and a mélange of factors are contributing to the trend,” says Bennett.

Although Boomers may have the time and the money to travel for longer stays, they join travelers across generations who increasingly seek extended, immersive journeys packed with authentic, local experiences. American Express Travel booking data indicates an average 26% YOY increase in length of stay for advanced bookings among the top 20 international destinations. But Bennett says age is not always a factor here. “As travel experts, it is imperative that we start defining travelers by psychographics and not solely demographics.”

“Technology and the ability to remain connected is a key factor why this is possible; it enables all travelers to plug in on location, making it easier to extend vacations, and business trips into longer getaways. When you can work wherever you are, these super explorers are saying: let’s go,” says Bennett.

HOTELS AS LIFESTYLE BRANDS
“Niche is nice. Lifestyle, fashion, fitness, culinary and design brands are latching onto the growing demand of customized travel and highly personalized experiences based on their founding product and catering to fans of their brand aesthetic and promise in the travel space,” says Bennett. Equinox, West Elm, Baccarat, Bulgari, Nobu and Restoration Hardware are among the brands breaking new ground in the travel and hospitality space to offer innovative ways to further engage their customer base in an age of bespoke travel. These companies join established hoteliers who have created their own design-focused brands, such as Marriott’s Edition and Hyatt’s Andaz. “According to American Express Travel booking data, we are seeing a more than 30% spike in bookings for lifestyle-inspired, design-focused hotels in the US for 2017.”

NEAR, FAR, AND EVERYWHERE IN BETWEEN FOR 2017
From a post-Brexit surge to a centennial celebration, these are the top trending destinations for the upcoming year according to American Express Travel experts:

Ulaanbaatar, Mongolia
Reykjavik, Iceland
Tokyo, Japan
Fogo Island, Newfoundland
London, England

Goa, India
Bozeman, Montana
Vancouver, Canada
Auckland, New Zealand
Paris, France

About American Express Travel
American Express Travel is a global full-service travel and related lifestyle services provider. For over 100 years, American Express has helped those who love to travel customize and elevate their trip experience through world-class service, exclusive programs and premium benefits. Customers have many options for accessing these services and can travel with confidence by having support from American Express whether booking online at www.amextravel.com or speaking with travel and lifestyle experts on the phone or in retail locations.

Key links to products, services and corporate responsibility information: charge and credit cards, business credit cards, Plenti rewards program, travel services, gift cards, prepaid cards, merchant services, corporate card, business travel and corporate responsibility.

American Express Increases Parental Leave and Family Benefits for U.S. Employees Beginning January 1, 2017

Mon, 12 Dec 2016 00:00:00 -0500

American Express (NYSE: AXP) today announced that the company’s U.S.-based regular full-time and part-time employees will be eligible for 20 weeks of paid parental leave. In addition, the company will be increasing its employee benefits for reproductive services, surrogacy, adoption and lactation.

The new paid parental leave policy covers women and men welcoming a child through birth, adoption and surrogacy. In addition to the 20 weeks of paid parental leave, birthing mothers will be eligible to receive paid, medically-necessary leave related to the birth of their child, which is generally, six to eight additional weeks.

To help ensure employees feel supported from the moment they decide to become parents through their return to work and beyond, American Express is also increasing a variety of family benefits. Beginning January 1, 2017, U.S.-based employees will be eligible for:

Reimbursement of expenses up to $35,000 to help with the cost of an adoption or surrogacy event (up to a maximum of two events per employee);
A lifetime maximum benefit of $35,000 for reproductive and fertility treatments, available under the company’s health plans;
Free 24-hour access to board-certified lactation consultants; and
Free breast-milk shipping while traveling on company business.

“American Express remains deeply committed to our working families and an inclusive culture that supports all of our employees,” says Kevin Cox, Chief Human Resources Officer, American Express. “These significant enhancements to our benefits reflect a continued investment in the overall well-being of our employees and their families.”

Additionally, beginning in January, expectant parents will have access to a parent concierge, who will help employees understand and navigate parental leave and the wide array of parental resources and programs available to them.

Over the years, American Express has supported working parents in the U.S. by offering them a holistic suite of family benefits, ranging from prenatal planning to the opportunity to apply for college scholarships. Beyond the benefit changes announced today, American Express provides a comprehensive package of free, family-friendly benefits to help parents manage work and caregiving responsibilities. Some benefits include:

Personal Concierge Services, programs providing employees with a variety of discounts and access to a group of researchers, ready and able to help with their to-do lists;
Back-Up Care, a program that provides employees with up to 20 days, per dependent, per calendar year, of quality in-home or center-based care;
Healthy Babies, a program for expectant mothers, providing them with a wide-range of healthcare resources and incentives; and
Flexible work arrangements, allowing employees to work directly with their leaders to determine the best work arrangement for their role.

Through these benefits changes and existing offerings, American Express provides one of the most robust suites of parental benefits among financial services companies operating in the U.S. People interested in learning more about careers at American Express in the U.S. can visit: https://jobs.americanexpress.com/us.

About American Express
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com, and connect with us on facebook.com/americanexpress, foursquare.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.

Jingle All the Way Home and Abroad: Holiday Travel Spend More than Doubles This Year

Tue, 06 Dec 2016 00:00:00 -0500

Whether to Grandma’s house or an all-inclusive resort they go, half of all Americans plan to travel this holiday season (52%, on par with 2015), expecting to spend an average of $1,521, a whopping 151% increase from 2015 ($605), according to the latest American Express Spending & Saving Tracker.

Consumers site the top reason to travel this holiday season is to visit family or friends (53% vs. 58% in 2015), followed by treating oneself or family members to a vacation (31% vs. 30% in 2015). The average American is expected to travel with five people, putting the overall cost of a family holiday vacation at $9,129.

“The holiday season has always been one of the most popular times to travel, but this year, Americans plan to spend significantly more,” said Claire Bennett, Executive Vice President of American Express Travel. “One reason for an increase in spend can be attributed to their desire for shared experiences and therefore their willingness to spend on activities and events with family and friends.”

While traveling, Americans anticipate spending more on dining out (36%), activities and entertainment (33%) and upgrading their accommodations (25%) this holiday season. Upgrades seem to be the name of the game, with significantly more consumers choosing a more expensive destination (18%) and more flying first or business class (15%).

Click to enlarge

Planes, Trains & Automobiles
Among those traveling this holiday season, the majority of Americans will stay within the U.S. (75% vs. 81%), ranking the Northeast as the top destination (30%), followed by the Southeast (26%) and Southwest and Midwest (both 19%). A smaller percentage will travel abroad (12% vs. 10% in 2015) or travel both domestically and internationally (11% vs. 8% in 2015).

When it comes to mode of transportation this holiday season, intentions to go by car have decreased (58% vs. 65% in 2015), those planning on flying has increased significantly (50% vs. 43% in 2015) and still fewer plan to travel by train (10% vs. 9% in 2015) or bus (8% vs. 9% in 2015).

Travel Splurges and Trade-Offs
While a majority of Americans will take trips over the holiday season, Americans generally find travel to be worth the splurge, according to 63% who would take a trip if the opportunity arose (vs. 60% in 2015). In fact, 87% of Americans are willing to exceed their travel budget, despite a specific season, and they’re willing to go over budget specifically for:

Unique experience relative to location (62%)
Local cuisine (45%)
Souvenirs (32%)
First-class airfare (13%)

While consumers are willing to exceed budgets for certain travel experiences and items, they will work to offset holiday travel costs by researching deals online (59% vs. 62% in 2015) and using loyalty or rewards points for all or partial payment of their travel (34% vs. 34%). In a sign that travel agents are growing in popularity, 17% of consumers say they will work with a travel agent who can navigate holiday fares (vs. 13% in 2015).

When deciding how to pay for their travels, 27% of Americans say they’ll pay with credit/charge cards, followed by debit cards used (24% vs. 20%) and credit card rewards points (15% vs. 12%). And, if you are hoping for someone to “gift” you that getaway you deserve, you’re not alone, considering that almost three in four (71%) consumers are willing to forgo holiday gifts to take a vacation (similar to last year’s 70%).

Still Plugged in While “Out of Office”
As much as Americans unplug, they’re still connected—either to their jobs or to their social networks. When traveling for leisure, only one in three employed Americans are willing to respond to work emails (33%) – versus 46% of Millennials who would respond to work e-mails on vacation.

Staying plugged in isn’t always about staying on top of work. Social sharing is a big reason why travelers are locked to their mobile phones, with 26% of American’s posting more than usual on their social channels while traveling. In fact, of those who post more on social media while on vacation, 62% say they share twice as many social media posts while on vacation.

About the American Express Spending & Saving Tracker
The American Express Spending & Saving Tracker research was completed online among a random sample of 1,540 adults, including the general U.S. population, an affluent demographic defined by a minimum annual household income of $100,000. Interviewing was conducted by Ebiquity from November 2-7, 2016. The results have an overall margin of error of +/- 2.5 at the 95 percent level of confidence.

Key links to products, services and corporate responsibility information: charge and credit cards, business credit cards, Plenti rewards program, travel services, gift cards, prepaid cards, merchant services, corporate card, business travel and corporate responsibility.

About Ebiquity
Ebiquity is a leading independent marketing analytics specialist. They provide objective data insights to major brands worldwide, helping them navigate the evolving marketing landscape to achieve business success. They work with over 80% of the world’s biggest advertisers and offer industry-leading services including Marketing Effectiveness, Multi-channel Analytics, Agency Pitch Management, Agency Contract Compliance, Digital Performance Measurement, and Media Auditing. Ebiquity employs over 900 people in 19 offices in 14 countries worldwide.

American Express® to Enhance Fraud-Prevention and Security Capabilities With Acquisition of InAuth

Tue, 06 Dec 2016 00:00:00 -0500

As an extension of the company’s multilayered strategy for fighting fraud, American Express (NYSE:AXP) today announced it has acquired InAuth, Inc., a leading provider of mobile device authentication and intelligence solutions. InAuth’s technology is used by some of the largest financial institutions, banks, payment networks and merchants to reduce risk and help identify potential fraud utilizing its mobile-first device authentication capabilities.

The acquisition complements and enhances American Express’ comprehensive data analytics and fraud prevention capabilities, which have enabled the company to achieve the lowest fraud rates in the industry. The acquisition also positions the company to capture new opportunities as more consumer activity – from payments to account origination and servicing – moves to digital channels. As commerce has increasingly shifted to online and mobile channels, so too has the risk of fraud. Seventy percent of U.S. merchants have experienced an increase in sales through online and mobile channels over the previous year, according to the 2016 American Express Digital Payments Security Survey. At the same time, 60% of merchants reported having experienced fraud from online and mobile sales.

“Security is part of our heritage, and helping our merchants and partners fight fraud is a top priority for American Express,” said Anré Williams, President, Global Merchant Services & Loyalty Group at American Express. “We’re acquiring the right company at the right time to evolve our leadership position in fraud management and security. This acquisition, along with Accertify and other significant investments we’ve made in data analytics and technology, will help us continue to offer security and protection to our merchants and partners as mobile and online spending drive commerce.”

Founded in 2011, InAuth helps clients identify risk, remove friction and reduce fraud in their digital channels. InAuth’s platform uses device authentication to enable clients to evaluate the potential risk of a digital transaction, whether it be a customer logging into their account on a mobile app or web browser, or making a purchase from a merchant’s website. American Express currently uses InAuth’s technology as part of its broader fraud management capabilities, and InAuth’s services are also sold by Accertify, a subsidiary of American Express that is a leading provider of ecommerce fraud-management and chargeback solutions to merchants.

Lisa Stanton, Chief Executive Officer of InAuth, will continue as President. She will report to Jaromir Divilek, Senior Vice President, Global Network Business, American Express.

“InAuth is thrilled about how this union will further enable us to deliver on our mission of helping the largest industry players around the globe, including banks, merchants and payment networks, make smarter risk decisions,” Stanton said. “As part of American Express, we will be able to build on the strong partnership we already have in place to gain scale, accelerate our expansion and, over time, work together to develop new capabilities that address the rapidly evolving world of digital commerce.”

Going forward, InAuth will operate as a wholly-owned subsidiary of American Express. The acquisition follows an investment in InAuth made earlier this year by American Express Ventures, the strategic investment arm of American Express.

InAuth’s technology will extend the innovative capabilities that American Express has developed in its technology platforms to support a new generation of digital products, and will complement the robust suite of tools that it already provides to help merchants fight fraud and help protect consumers. These tools include SafeKey, Enhanced Authorization and Accertify, which helps merchants detect and prevent online fraud across all payment card networks. American Express also offers a number of services and features to help Card Members monitor their account information and help prevent fraud at the point of sale, including one-click alerts to confirm charges via text, email and mobile app.

About InAuth
InAuth is the leading digital device intelligence company for a mobile-first world. InAuth delivers advanced device identification, risk detection, and analysis capabilities to help organizations limit risk, remove friction, and reduce fraud within their digital channels. With safer digital transactions, banks, payment networks, merchants, healthcare providers, governments, and other organizations are better positioned to capture new revenue opportunities and compete more effectively in an “always-on” world. For more information, visit www.InAuth.com.

Information Related To Forward-Looking Statements
This release includes forward-looking statements that reflect management’s expectations about future events and the company’s operating plans and performance. These forward-looking statements are subject to risks and uncertainties. The words “believe,” “hope,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” and similar expressions are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. American Express undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the underlying assumptions related to the acquisition of InAuth proving to be inaccurate or unrealized, and the company’s ability to successfully integrate InAuth following consummation of the transaction. A further description of such factors can be found in American Express’ Annual Report on Form 10-K for the year ended December 31, 2015 and the company’s other reports filed with the SEC.

¹Merchants refer to those businesses who accept payments on a traditional website, mobile website or mobile application.