Kixo
May 1, 07, 10:39 pm
Effective May 2, Amex is reducing its corporate card float from 60 days to 45 days. It will charge a late fee at 45 days, and another late fee at 60 days.
It is also increasing its ForEx conversion charge from 2% to 2.5%.
When I contacted Amex, I was told this was an across-the-board increase, meaning that corporations who use Amex as their travel card program could not opt out, or be contractually exempt from these increases.
"Amex can change these terms any time we need to," I was told.
Here is a huge opportunity for Diners Club to capitalize on Amex's arbitrary changes. DC can continue to offer (and heavily promote) the 60-day float, and drop its ForEx fee from 3% to 2%.
That would certainly attract the attention of corporate travel managers.
However, considering the "enlightened" management decisions made by DC in the last couple of years, here is what I predict will happen:
- DC will reduce its corporate card float from 60 days to 30 days
- DC will increase its ForEx fee from 3% to 4%
Let's see if DC's marketing department can awaken from hibernation and truly differentiate the Diners Club corporate card from an increasingly arrogant competition.
It is also increasing its ForEx conversion charge from 2% to 2.5%.
When I contacted Amex, I was told this was an across-the-board increase, meaning that corporations who use Amex as their travel card program could not opt out, or be contractually exempt from these increases.
"Amex can change these terms any time we need to," I was told.
Here is a huge opportunity for Diners Club to capitalize on Amex's arbitrary changes. DC can continue to offer (and heavily promote) the 60-day float, and drop its ForEx fee from 3% to 2%.
That would certainly attract the attention of corporate travel managers.
However, considering the "enlightened" management decisions made by DC in the last couple of years, here is what I predict will happen:
- DC will reduce its corporate card float from 60 days to 30 days
- DC will increase its ForEx fee from 3% to 4%
Let's see if DC's marketing department can awaken from hibernation and truly differentiate the Diners Club corporate card from an increasingly arrogant competition.