American Express 2015 Annual Report Download - page 17

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Membership Rewards®program Emergency Card Replacement Global Assist®Hotline Online Account Management
Car Rental Loss and Damage Insurance Online Year-End Summary Extended WarrantyAdvance Ticket Sales Purchase
Protection Exclusive Access to Card Member Events Return Protection
When a Card Member enrolled in the Membership Rewards program uses their card, we establish reserves to
cover the cost of estimated future reward redemptions for points earned to date. When a Membership Rewards
program enrollee redeems a reward using Membership Rewards points, we make a payment to the Membership
Rewards program partner providing the reward pursuant to contractual arrangements. Membership Rewards expense
is driven by Card Member charge volume, customer participation in the program and contractual arrangements with
redemption partners. For more information on our Membership Rewards program, see “Critical Accounting
Estimates — Liability for Membership Rewards Expense” under “MD&A.”
Membership Rewards continues to be an important competitive differentiator and driver of Card Member
spending and loyalty. We believe, based on historical experience, Card Members enrolled in rewards programs yield
higher spend, stronger credit performance and greater profit for us. By offering a broader range of redemption
choices, we have given our Card Members more flexibility in the use of their rewards points on a cost-effective basis.
Our program is also valuable to merchants that become redemption partners as we bring them high-spending Card
Members and new marketing channels to reach these Card Members.
Card Member Benefits and Services
Our Card Members have access to a variety of special benefits and services, some of which are fee-based,
depending on the type of cards they have. Examples of these special benefits and services include:
Membership Rewards
®
program
Emergency Card
Replacement
Global Assist
®
Hotline
Online Account
Management
Car Rental Loss and
Damage Insurance
Online Year-End
Summary
Purchase Protection Exclusive Access to
Card Member Events Return Protection
Extended Warranty Advance Ticket Sales
OPEN
In addition to our U.S. consumer card business, through American Express Bank we are also a leading payment
card issuer for small businesses (generally, firms with fewer than 100 employees and/or annual sales up to $10
million). American Express OPEN offers small business owners a wide range of products, services, tools and savings
designed to meet their evolving payment and business needs, including:
• Charge and credit cards
• Rewards on eligible spend and business-relevant rewards redemption options
• Travel and concierge services
• Retail and travel protections such as purchase protection and baggage insurance
• A five percent discount or two Membership Rewards points for each eligible dollar spent at select suppliers of
travel, business services and products through OPEN Savings®
• Expense management tools and reporting
• Online account management capabilities
• Resources to help grow and manage a business through our community-driven website, OPEN Forum®
6