American Express Company (NYSE:AXP) has unveiled the updated U.S. American Express Business Gold Card, set to carry an annual fee of $375 starting from February 1 of the upcoming year. These enhancements to the card aim to expand the categories in which Card Members can earn rewarding benefits, offering a range of statement credits and advanced digital tools.
This move by American Express aligns with its longstanding commitment to supporting small businesses and ensuring their smooth operations.
Under the renewed U.S. Business Gold Card, Card Members can now earn 4X Membership Rewards points on the initial $150,000 of combined purchases made in each calendar year across specific eligible categories. The list of eligible categories has been expanded to include purchases from U.S. electronic goods retailers, software and cloud system providers, monthly wireless telephone service bills, and transit purchases.
Furthermore, Card Members can take advantage of a flexible business credit of $240, earned by making eligible purchases with the card at FedEx, Grubhub, and Office Supply Stores. The card can also be used for paying monthly Walmart + membership fees, with a statement credit in return. Additionally, 3X Membership Rewards points can be earned on eligible purchases via AmexTravel.com.
The refreshed Business Gold Card also incorporates digital payment services and cash flow tools to simplify account management and cater to the diverse payment needs of small and mid-size businesses. A valuable cell phone protection feature has been introduced, allowing Card Members to seek reimbursement for repair or replacement expenses if their cell phone, listed on a wireless bill, has been damaged or stolen and the prior month’s bill was paid using an Eligible Card Account.
American Express’ continuous efforts to enhance its card offerings demonstrate its commitment to meeting the evolving needs of its Card Members, which may attract new clients and retain existing ones. As the card-issuing business remains a significant source of revenue for AXP, these upgrades are expected to contribute to its top-line growth. Management anticipates revenue growth in the range of 15-17% for this year.
While American Express shares have gained 0.5% in the past year, outperforming the industry’s 2.6% decline
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