AMEX Cuts Perks

Until recently, the nine million people who are enrolled in the Membership Rewards Program of American Express have been able to redeem their "points" for air travel on Delta Airlines, graphite golf clubs and Cuisinarts. According to the Wall Street Journal, many executives have found that the pains of business travel were somewhat alleviated by the Membership Rewards received. However, AmEx has found that while the program is popular, it is also expensive to administer. Of course, it passed those costs to the corporations with employees who were using the plan. Amex is now offering firms the opportunity to cancel the plan, thereby saving thousands of dollars. With profit margins narrowing, a number of firms have already done so. While some employers are welcoming the opportunity to drop the plan, employees are less enthusiastic.

CardWeb reports that American Express has followed up these changes with five new reward credit cards: Rewards Green, Rewards Gold, Rewards Platinum, Preferred Reward Green and Preferred Reward Gold. Cardholders earn two points per dollar charged to the cards at stand-alone supermarkets, gas stations, drug stores, home improvement stores, U.S. Postal Service and certain pharmaceutical bills.