Bloomberg - How Bad Will It Get for American Express? 5-15min

Amex has faced trouble before. In the wake of the 1987 stock market crash, merchants started to turn away the Amex card because of its hefty swipe fees, which at the time were as high as 3.5 percent. In 1991, a group of 100 restaurateurs in Boston staged what became known as the Boston Fee Party. “There was a big recession going on,” says Steve DiFillippo, owner of Davio’s, a popular Italian restaurant in the city and one of the Fee Partiers. “The garbage guys and the meat guys were helping us out, but American Express wasn’t doing anything for us.” Visa did its best to make the situation worse with an ad campaign featuring celebrity chefs such as Wolfgang Puck and other merchants who didn’t take American Express. ... JPMorgan and Barclays have poached Amex’s high-spending customers with generous card offers and lower annual fees. Two years ago, Chase cards surpassed Amex in American households making at least $125,000 a year ... “Part of my job is to persuade,” Chenault said. Never mind that even the Black Card no longer has the same mystique with the young moneyed set that Amex desperately needs to attract. In 2004, Kanye West boasted about his, memorably referring to it in a song as the “African American Express card.” But last year, Young Thug, the rap icon and influencer of the moment, rhymed in the hedonistic hit Lifestyle about having a $1.5 million spending limit on his Visa card.