The main reason why Amex cards are so expensive is that many American Express credit cards offer generous rewards rates and high-end perks, which warrant steep annual fees. Amex cards are targeted toward people with good credit and high incomes who are likely to charge large amounts to their cards every month.
That being said, not all American Express cards are expensive to own. There are several $0 annual fee Amex credit cards that still offer great rewards on purchases.
Reasons Why Amex Cards Are Expensive
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Amex credit cards are designed for high spenders
All Amex credit card offers are aimed at people with good credit or better and lots of expendable income. According to the Amex website, American Express cardholders spend an average of 30% more per transaction than non-Amex cardholders.
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Amex charges significant fees
The Centurion® Card from American Express, for instance, charges cardmembers a $5000 fee every year, as well as a one-time $10,000 initiation fee. Annual fees for other Amex cards range from $0 to $695.
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Amex credit cards come with luxury perks
Depending on the card, Amex users can benefit from big initial bonus offers and generous ongoing rewards rates, as well as exclusive perks such as access to high-end airport lounges, airfare credits, and concierge services.
You can learn more and compare American Express credit card offers on WalletHub.
This answer was first published on 03/29/22 and it was last updated on 09/07/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Bianca Smith, WalletHub Credit Cards Analyst
Why are American Express cards so expensive? ›
The American Express business model is based on the rewards they offer for using their card brand to pay for purchases. And because they believe they attract a more affluent customer, they claim their cardholders make more purchases and buy higher priced items. The cost of these perks have to be covered somehow.
What is the big deal about having an American Express card? ›
American Express is one of the leading card issuers in the United States. It's known for its top-notch customer service and some of the best rewards available. From ultra-elite business travel cards to everyday rewards, American Express has credit cards that are a good choice for many different types of cardholders.
Is it worth it to pay for an American Express card? ›
The card earns Membership Rewards that are valuable if you want to maximize travel. However, you may be better served with a general cash-back card if you don't have specific reward goals or want to deal with any extra steps in your redemptions.
What is the hardest American Express card to get approved for? ›
Centurion® Card from American Express
A rating of 5 is the best a card can receive. Why it's one of the hardest credit cards to get: The hardest credit card to get is the American Express Centurion Card. Known simply as the “Black Card,” you need an invitation to get Amex Centurion.
Why are Amex card fees so high? ›
The reason behind this is simple—American Express charges merchants a higher fee than competitors do. To be clear, all credit card issuers charge merchants fees in order to accept their credit cards, yet some card issuers choose to charge a higher fee than others.
What is the downside of American Express? ›
American Express Credit Card Disadvantages
Balance transfer fees: You will typically have to pay a fee to move a balance to your American Express credit card. Less-widely accepted: Mastercard and Visa cards are more widely accepted than American Express cards, especially internationally.
Is it prestigious to have an Amex card? ›
Yes, it's hard to get an American Express card because you will need a good or excellent credit score for approval, along with enough income for monthly bill payments. American Express cards are generally considered some of the most exclusive credit cards on the market.
How to get Amex Platinum fee waived? ›
You can get the annual fee waived on The Platinum Card® from American Express exclusively for Morgan Stanley* if you have the Morgan Stanley Platinum CashPlus account, which also comes with unlimited ATM fee rebates and is FDIC-insured.
Is there a benefit to American Express? ›
Enjoy travel-related privileges and advantages, as well as access to lounges, concierge services, fine dining, health and wellness offerings, golf course memberships, and participation in elite clubs. Is the option to convert purchases into EMI available with American Express credit cards? Yes.
What is the most prestigious credit card? One of the world's most prestigious credit cards is the Centurion® Card from American Express*. Though there may be other cards with more elaborate benefits, those cards are kept well under wraps.
Why is American Express rarely accepted? ›
The different fees often make or break a deal for a merchant. This is why many merchants, especially small businesses, don't accept American Express. American Express' interchange fee is just too high. Providers like Visa and Mastercard charge between 1.15% and 2.5%, while Amex charges merchants between 1.43% and 3.3%.
What's the easiest Amex to get approved for? ›
The easiest American Express cards to get are those that require a minimum of good credit for approval as opposed to excellent credit only. The Blue Cash Everyday® Card from American Express and the American Express Cash Magnet® Card are two of the easiest Amex cards to get because they only require good credit.
Is Amex worth getting? ›
If you're looking for a way to maximise your spending, American Express offers some of the best credit cards on the market. While its offers aren't tailored towards those looking to improve their credit score or shift hefty debt, its cards reward their spenders with cashback or points on exclusive programmes.
