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BUSINESS Friday 25 OctOber 2019
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Iconic AmEx 'Green Card' turns 50, gets a needed revamp

By KEN SWEET well as an annual $100 air-
Associated Press port lounge credit through
NEW YORK (AP) — For 50 LoungeBuddy, which AmEx
years, the American Ex- says will cover roughly two
press "Green Card" has lounge visits.
been everywhere its card To spur further interest in
members wanted to be. the revamped card, AmEx
Launched in 1969, the is also throwing in a sign-up
Green Card gave travel- bonus of 30,000 Member-
ers a sense of importance ship Rewards points and a
they didn't feel carrying $100 credit toward Away,
travelers' cheques. For the luggage company.
many people, it was their The Green Card also will
first AmEx card. Over time, function more like a credit
however, the Green Card card, allowing account
became neglected in fa- holders to pay off any pur-
vor of its fancier siblings, the chase over time, instead of
Gold and Platinum Cards. paying in full at the end of
Now, the Green Card is each month. Up until now,
getting a much-needed the card didn't allow that.
revamp, with a new look The change means AmEx
and more travel benefits — will no longer offer a card
and, yes, a higher annual that sticks to the tradition-
fee. al pay at the end of the
In probably the most radi- month model.
cal of changes, the card In this Wednesday, Oct. 23, 2019, photo Ira Galtman, American Express director of corporate ar- Credit card industry watch-
will no longer be a charge chives, shows the new American Express "Green Card," in New York. ers say AmEx is catching up
card, but function more Associated Press to consumers' preferences.
like a traditional credit card a new lounge benefit, but had an annual fee — six more love from the com- Most credit card users re-
with the ability to revolve it will not provide the un- dollars, or roughly $40 in to- pany. volve a balance and want
a balance and pay over limited access to airport day's dollars. That's largely because the flexibility to pay off
time. This is the final nail in lounges that Platinum Card "Our card is a prestige in- American Express, which some purchases immedi-
the coffin for American Ex- users enjoy. strument used primarily for used to dominate the high- ately and pay others over
press' charge card model, American Express would travel and entertainment ... end-credit card market, time.
which defined the compa- never describe the new it is not a 'shoppers card'," has faced increased com- "The charge card is a bit
ny's image for decades. Green Card as its entry lev- American Express CEO petition from rival banks of a dinosaur," said Matt
Analysts say change was el credit card, but that's ef- Howard Clark told share- and credit card compa- Schulz, an industry analyst
overdue. While American fectively what it became. holders in 1969. nies. The company's Plati- with CreditCards.com
Express would not share The Green Card wasn't The card, and it's market- num Card now competes The new features on the
details on how many the first credit card — that ing, was a hit. The Ameri- with JPMorgan Chase's card will come with a heft-
Green Card customers achievement belongs to can Express Card became Sapphire Reserve Card, as ier price tag. The annual
there are, industry analysts Diners' Club. It wasn't even a symbol for the global well as Citigroup's Prestige fee on the Green Card
say the card's popularity the first credit card AmEx is- traveler and high-level ex- Card. AmEx has been up- will increase to $150 from
has been on the decline. sued — that distinction be- ecutive. And the Green ping the perks and rewards the current $95. AmEx has
Popular credit card review longs to the "Purple Card," Card's design was adopt- on the Platinum Card to been increasing the annu-
websites generally do not a paper version which ed across all of American keep customers, and has al fees on most of its cards
recommend the card in launched in 1958. Express cards. done the same for the in the last two years, to
its current iteration, citing The Green Card was origi- "Those who had the card Gold Card. cover the cost of increased
its annual fee and lack of nally known as "The Money felt like they were just a The Green Card was sort benefits.q
benefits. Card" — colored to re- little more special," said Kit of forgotten by credit card
"The Green Card is iconic. semble American dollar Yarrow, a professor of mar- users. The card had not re-
Often, it was the first prod- bills — but has been wide- keting and advertising at ceived any major changes
uct that our card members ly referred to simply "The Golden Gate State Univer- to its benefits since 2002.
had with us, and it carried American Express Card." sity. The Green Card will now
a certain cachet. Now we The Green Card was rolled While the Green Card may come with a $100 annual
want to bring it back in a out a year before the Boe- have the history, the Gold benefit for Clear, the pri-
modernized way," said Ra- ing 747 went into service Card and the Platinum vate airport security service
chel Stocks, executive vice and international travel Card have received much similar to TSA Precheck, as
president of global premi- was becoming increasingly
um products and benefits, available to Americans. At
in an interview. the time, American Express'
American Express sees its biggest business was travel-
typical card user as some- ers' cheques.
one who is relatively well- The card was a sold like a
to-do, likes to travel, dine ticket to an exclusive club,
out and see entertainment. a club full of traveling busi-
But the expectation is a nessmen. Advertisements
Green Card user would be from its launch into the
doing these activities less 1970s focused on how cus-
frequently than a Platinum tomers had to apply for the
Card user. For example the card, and not everyone
Green Card will come with would be accepted. It also