Latest news with #creditcardfees
Skift
3 days ago
- Business
- Skift
Luxury, Credit Cards, Deals: What We're Watching in Hotel Earnings
Government travel headwinds and tariff uncertainties may be temporary. Luxury resilience and growing credit card fees may be enduring. Many analysts believe the major hotel groups are positioned to report steady, if unspectacular, growth in the second quarter, thanks to enjoying more tailwinds than headwinds. In April, Hilton CEO Chris Nassetta predicted that travel demand would stabilize after the passage of President Trump's tax and budget bill and summer negotiations over tariffs. In May, Marriott issued upbeat guidance for the year and assumed no U.S. recession would emerge. Second-quarter results will show whether that optimism reflected confidence or wishful thinking. Earlier this year, revenue per available room (RevPAR) had been recovering but remained below 2019 peaks in several key markets and segments. Reports we'll be tracking this week: Hilton (Wednesday) and Wyndham (Thursday). Marriott, Hyatt, IHG, Choice, Accor, and others will roll out in the coming weeks. Sources of Streng
Yahoo
3 days ago
- Business
- Yahoo
AmEx execs were asked about the upcoming Platinum card changes and crowding concerns at lounges — here's what they said
American Express execs were asked about Platinum card fees and crowded lounges on an earnings call. The current annual fee is $695, which is still less than that of the Chase Sapphire Reserve card. Executives also said they expect "more innovation" in airport lounges and acknowledged crowding issues. Few details have come out about the coming updated American Express Platinum Card — including how much it will cost, as the world of premium credit cards gets ever glitzier. The company's CEO and chief financial officer were asked about card fee growth on a second-quarter earnings call on July 18. "Given the previous conversations that we had about the timing of the platinum fee increase, it's only sometime in the new year, in 2026, that you should see that inflection point and a bit more acceleration," CFO Christophe Le Caillec said on the call. He added that card fee growth rates will likely "moderate" within the balance of this year. A representative for American Express declined to comment. Currently, the Amex Platinum Card has an annual fee of $695, which is less than the $795 yearly fee for the Chase Sapphire Reserve credit card. Amex promised an update on the Platinum card later this year and said more details would come in the fall. Some have speculated that the fee on the revamped Platinum card could reach $1,000. "Anybody who thinks that we're refreshing the product in response to what our competitors are doing is crazy," CEO Stephen Squeri said on the call. "We have our own schedule." Current cardholders get a range of perks, including access to certain airport lounges and other travel credits. As those lounges continue to boom in popularity, Amex executives were also asked about overcrowding concerns and competition from airlines and other credit cards. "We're trying to make the lounges bigger," Squeri said on the call. "I think this whole lounge game has been a boom for airport authorities in terms of how many lounges they can put in." He mentioned a new, smaller "sidecar" lounge in Las Vegas, where cardholders can pop in for a quick drink, and said Amex works closely with its partner Delta to try and deal with the crowds. "I think you'll continue to see more innovation here," Squeri added. "You'll look at more expansion of existing lounges where we can get space. And you'll look at a strategy that looks at satellite locations so that, you know, we can handle the demand that we get." The company's second-quarter revenue minus interest expense was $17.9 billion, rising 9% year-over-year, according to a press release. The growth was driven in part by increased spending and "continued strong card fee growth," Amex said in the release. Amex's stock was down more than 2.3% by the time the market closed. Squeri emphasized the company's focus on premium users in the press release, saying demand is strong and teasing the coming Platinum "refresh." The question of exactly how much that "refresh" will cost, though, remains to be answered. Read the original article on Business Insider
Yahoo
3 days ago
- Business
- Yahoo
AmEx execs were asked about the upcoming Platinum card changes and crowding concerns at lounges — here's what they said
American Express execs were asked about Platinum card fees and crowded lounges on an earnings call. The current annual fee is $695, which is still less than that of the Chase Sapphire Reserve card. Executives also said they expect "more innovation" in airport lounges and acknowledged crowding issues. Few details have come out about the coming updated American Express Platinum Card — including how much it will cost, as the world of premium credit cards gets ever glitzier. The company's CEO and chief financial officer were asked about card fee growth on a second-quarter earnings call on July 18. "Given the previous conversations that we had about the timing of the platinum fee increase, it's only sometime in the new year, in 2026, that you should see that inflection point and a bit more acceleration," CFO Christophe Le Caillec said on the call. He added that card fee growth rates will likely "moderate" within the balance of this year. A representative for American Express declined to comment. Currently, the Amex Platinum Card has an annual fee of $695, which is less than the $795 yearly fee for the Chase Sapphire Reserve credit card. Amex promised an update on the Platinum card later this year and said more details would come in the fall. Some have speculated that the fee on the revamped Platinum card could reach $1,000. "Anybody who thinks that we're refreshing the product in response to what our competitors are doing is crazy," CEO Stephen Squeri said on the call. "We have our own schedule." Current cardholders get a range of perks, including access to certain airport lounges and other travel credits. As those lounges continue to boom in popularity, Amex executives were also asked about overcrowding concerns and competition from airlines and other credit cards. "We're trying to make the lounges bigger," Squeri said on the call. "I think this whole lounge game has been a boom for airport authorities in terms of how many lounges they can put in." He mentioned a new, smaller "sidecar" lounge in Las Vegas, where cardholders can pop in for a quick drink, and said Amex works closely with its partner Delta to try and deal with the crowds. "I think you'll continue to see more innovation here," Squeri added. "You'll look at more expansion of existing lounges where we can get space. And you'll look at a strategy that looks at satellite locations so that, you know, we can handle the demand that we get." The company's second-quarter revenue minus interest expense was $17.9 billion, rising 9% year-over-year, according to a press release. The growth was driven in part by increased spending and "continued strong card fee growth," Amex said in the release. Amex's stock was down more than 2.3% by the time the market closed. Squeri emphasized the company's focus on premium users in the press release, saying demand is strong and teasing the coming Platinum "refresh." The question of exactly how much that "refresh" will cost, though, remains to be answered. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Entrepreneur
09-07-2025
- Business
- Entrepreneur
Why Surcharging Is a Bad Move For Small Businesses — and What to Do Instead
Before you add credit card surcharges, learn what the big players know — and how to protect your business from costly mistakes. Opinions expressed by Entrepreneur contributors are their own. I belong to a CEO peer group, and I love connecting with leaders who are further along in their journey. I work hard to keep my mouth shut and my ears open — because let's be honest, they have way more to teach me than I have to teach them. I also love it when they let me record our conversations on Plaud so I can revisit the gold later. I used to think that most CEOs and business owners approached their growth the same way: by learning from those ahead of them. But lately, I'm starting to wonder. Why? Because right now, I'm watching a surcharging frenzy unfold. Small and midsize merchants are racing to add extra fees to customers' bills to cover credit card processing costs. Yet not one major player is doing it. Not Apple. Not Walmart. Not Amazon. Not Target. Not Costco. None of them. So, what do they know that others don't? Related: Is Your Credit Card Processor Secretly Costing You a Fortune? Watch for These 5 Red Flags What is surcharging (and why should you care)? Surcharging means adding a fee at checkout to cover the cost of customers paying with a credit card. It sounds simple. But staying compliant with some of the states and card-brand rules is anything but. Each card network (e.g. Visa, Mastercard) has its own set of rules, and some states ban surcharges altogether. The result? A regulatory mess where one slip-up can lead to fines, customer backlash or both. Why the big players avoid it Big companies have armies of lawyers and compliance experts. They also utilize firms to help them reduce their fees without ticking off customers. Most importantly — they understand the hidden dangers of surcharging: Legal risks: Missteps can trigger fines from card networks or regulators. Fines can exceed $10,000 per violation. Processor traps: Many merchant agreements let processors pass their own fines onto you if you're caught surcharging incorrectly. That means you could get hit twice. Customer friction: Surcharges annoy customers. Studies show surprise fees lead to higher cart abandonment rates and fewer return visits. In short: Big companies know that surcharging often costs more in lost business and legal headaches than it saves on fees. What's really driving up your fees? Here's the kicker: If your merchant fees are climbing, it's probably not because the networks are hiking their rates. Interchange fees — the core cost of processing — have barely budged in the last 15 years. So where's the extra cost coming from? Inflated fees: This is when a processor inflates the actual cost of the fees, i.e. charging you 2.95% when the exact fee is only 2.25%. Made up hidden fees Charging high discount rates, your discount rate should be fully disclosed, broken out, and only between 2 and 7 basis points at most, and if you are processing over $10 million a year, more than 4-5 basis points, over $100 million a year, 2-3 basis points. Keeping rebates: Most businesses are unaware that they should receive their processing fees back on returned or voided sales, and the credit card processor pockets those refunds. For merchants with a high volume of returns, this can add up significantly. What smart business owners do instead If you want to reduce credit card processing costs without the risks of surcharging, here's the playbook: Get a merchant processing audit: An independent audit can reveal hidden fees, excessive markups, and junk charges. At my firm, we see clients reduce their fees as much as 40%. To be fully transparent, several firms offer this service, so be sure to do your research and find the one that best suits your needs. Ask about interchange optimization: This ensures your transactions qualify for the lowest possible rates under the existing rules — no customer friction required. Make sure they show you that your transactions are clearing at the lowest interchange. Don't just take their word for it. If you must surcharge, get expert help: Work with a firm that understands all state laws and card-brand rules. Ensure you're registered properly and following the strict requirements — because one mistake can cost you dearly. Also, there are firms that will take ownership of the compliance and cover your fines should you get fined. Related: How to Choose a Credit Card for Your Startup My final thoughts How do you feel when you get surcharged? Business becomes increasingly competitive every day, and I believe most people will do business where they feel wanted and valued, which is a lost art, but not everywhere. Ready to break through your revenue ceiling? Join us at Level Up, a conference for ambitious business leaders to unlock new growth opportunities.
Bloomberg
13-06-2025
- Business
- Bloomberg
A $60 Billion Visa, Mastercard Slump Seen as Buying Opportunity
A report that large multinational merchants are exploring ways to bypass traditional credit-card fees presents investors with an opportunity to buy shares of Mastercard Inc. and Visa Inc., according to Wall Street analysts. Shares of Mastercard shed as much as 6.2% Friday, while Visa lost more than 7.1% — the worst one-day drop in about two months for both stocks. Shares of other payment companies such as American Express Co., PayPal Holdings Inc. and Capital One Financial Corp. also slipped in intraday trading.
