I know that a reduction of the credit limit is *really* annoying. But I am convinced that you will see the decision of Amex in another light if you think some days later.

Reallocating credit limits is a natural process for nearly all companies dealing with customers, like department stores, credit card companies and also the retail-banking. :-:

Sometimes after purchasing many things and paying them off the credit limit increases - regardless if this is communicated to the customer or only a kind of "shadow limit" within the company IT [insert a name of a company you like].

If the limit goes up no customer is annoyed. But beware if you lower your exposure, then the customers complain

And AFAIK a limit of 5,000 USD carried over month to month on a credit card is not really a low limit and unfair treatment.

You can also see that the current business climate doesn´t show a clear direction. Many companies are between the insureties of the economic development on the one hand and the road to recovery on the other hand. :-:

So I see no reason for cancelling the card just for a limit reallocation.

I have seen it (based in Germany) for many times with the limit of my current account (not at the Amex bank as they have no branch in Germany - only credit card services). Sometimes it goes up and sometimes down.

"Regular" credit line allocations without a personal interaction with the bank are approx. for one third of the previous limit.

To conclude it: Although it is not nice that a business partner/credit company tells you that they have to lower the risk it is really part of the daily business life.