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American Express Retires Green Card

Because beauty is only skin deep and mere appearances aren't everything, when American Express revamps its classic credit cards, the company also will add new customer rewards and perks as benefits to using them.

The green (and gold) cards that once imparted status of ownership upon its users will be redesigned with bolder colors and more options to allow holders to earn merchandise points and frequent-flier miles for every dollar earned - just as less "prestigious" Visas and MasterCards have been doing for years.

American Express found that even if cardholders didn't leave home without it, those who were enrolled in the "Membership Rewards" program charged four times as much on their cards as non-enrollees, according to the Wall Street Journal. Competition with Visa and MasterCard cards - both credit and, more recently, debit - also contributed to AmEx's decision to revamp its familiar classic.

During the 1980s, large banks and financial groups influenced customer spending with the introduction of earning airline miles for dollars spent using branded Visas and MasterCards. Since these cards already were accepted at more retail establishments than AmEx cards, consumers began to use the other cards for all sorts of purchases. In the 1990s, though, American Express pushed for acceptance of its cards at more types of retail locations, such as grocery stores, drug stores and gas stations, and introduced the Membership Rewards program.

To entice both current cardholders as well as new customers to get with the program, AmEx will offer two Membership Rewards points for every dollar they spend at most retail establishments. The company also is offering the option of choosing to use the points for merchandise or airline tickets.

Annual membership dues and eligibility fees for the current rewards program will be eliminated; now one fee will cover both.

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