One thing not discussed is the relationship between AmEx's big purchases and its fees. American Express puts a lot of effort into keeping its paying consumers happy because they are both American Express customers (because they pay fees) and because customers really want to use American Express cards at merchants (and so American Express can charge those merchants higher fees).
I'll give you an example. Years ago, I bought a fancy sofa online. The merchant sent periodic "don't worry, we're just behind schedule" every week or so for months, and then sent one last email saying they had declared bankruptcy. I was way out of my chargeback window, but when I called American Express, they instantly refunded me my purchase anyway. That experience meant that, if I ever make another big purchase online, I will go out of my way to use an American Express card, including switching merchants if necessary.
Keeping customers who make big purchases happy costs money, both in losses and in administrative overhead, but it pays out on both the customer and merchant side in the long run.
I'll give you an example. Years ago, I bought a fancy sofa online. The merchant sent periodic "don't worry, we're just behind schedule" every week or so for months, and then sent one last email saying they had declared bankruptcy. I was way out of my chargeback window, but when I called American Express, they instantly refunded me my purchase anyway. That experience meant that, if I ever make another big purchase online, I will go out of my way to use an American Express card, including switching merchants if necessary.
Keeping customers who make big purchases happy costs money, both in losses and in administrative overhead, but it pays out on both the customer and merchant side in the long run.