American Express Card: Types, Benefits, and Fees Explained

What is an American Express card?

An American Express (Amex) card is a payment card issued and processed by American Express Company. Amex issues credit cards, charge cards, and prepaid cards for consumers, small businesses, and corporations. Unlike many competitors, Amex operates both as the card issuer and the payment-processing network.

How Amex works

• Amex issues accounts to cardholders and runs its own processing network to authenticate and settle transactions.
• Merchants accept Amex through its network and pay merchant fees for processing; those fees are often higher than Visa or Mastercard rates.
• Amex earns revenue from interest on lending products, processing fees, and annual fees on certain cards.

Types of Amex cards

• Charge cards: Require full payment of the balance each month. They often have no preset spending limit (examples: Green, Gold, Platinum).
• Credit cards: Allow revolving balances and interest charges if not paid in full.
• Prepaid and branded cards: Reloadable or gift-card-style products and co-branded offerings with partners (airlines, hotels, retailers).

Common product features
– Rewards: Points-based programs, travel perks, and some cash-back options. Rewards and perks usually increase with higher annual-fee cards.
– Annual fees: Vary widely. Examples for consumer cards (typical ranges): Blue Cash Preferred ~$95, Gold ~$325, Platinum ~$695. Amex also offers multiple no-annual-fee cards.
– Credit requirements: Amex typically targets borrowers with good to excellent credit (commonly a FICO score around 670 or higher).
– Customer service: Amex is widely recognized for high customer-service ratings.

Notable cards and perks
– Centurion (“Black Card”): Invitation-only, ultra-premium product.
– Co-branded cards: Partnerships with brands like Delta and Hilton offer specialized rewards (air miles, hotel points).
– No preset spending limit: Certain charge and premium cards don’t have a fixed credit limit, though spending is still subject to approval.

Fees and merchant acceptance

• Cardholders may face annual fees and interest on revolving balances (credit cards).
• Merchants often pay higher interchange fees for Amex transactions, which can lead some businesses—especially small merchants—to limit acceptance of Amex.
• As both issuer and network, Amex controls transaction authentication and settlement, which is reflected in its fee structure.

Advantages

• Strong rewards programs and travel benefits on premium cards.
• High-quality customer service and cardholder protections.
• Charge-card options encourage full repayment and avoid recurring interest.
• Flexible spending experience on certain premium cards (no preset spending limit).
• Multiple no-annual-fee options available.

Disadvantages

• Higher annual fees for many premium cards.
• Some merchants don’t accept Amex due to higher processing fees.
• Generally requires good to excellent credit to qualify.
• Charge cards are not suitable for cardholders who need to carry a monthly balance.

Who should consider an Amex card?

• Frequent travelers and people who can utilize travel perks, airport lounge access, and premium rewards.
• Consumers who value strong customer service and cardholder benefits.
• Cardholders with good or excellent credit who can justify annual fees through rewards and benefits.
• Those who prefer paying in full monthly (for charge-card products).

Bottom line

American Express stands out as one of the few companies that both issues cards and operates its own payment network. That combination enables a wide range of products and premium benefits, but also contributes to higher merchant fees and, in many cases, higher annual fees. Amex cards can offer excellent value for cardholders who qualify and take full advantage of rewards and travel perks; however, limited merchant acceptance and fee levels are important considerations when choosing a card.