You may have read about that high-rolling businessman and
his recent evening excursion with friends in an exclusive
London nightclub. In about seven hours, the businessman and
15 friends (actually, many other people crashed the party)
quenched their gargantuan thirst with 102 bottles of
champagne, 11 bottles of vodka and a Methuselah bottle of
champagne (which contains 8 regular-size bottles). You
would probably have had to reach the age of Methuselah to
pay the bill: a massive £105,805. But the Dubai-based
businessman had no problem paying for it; out came his
American Express Centurion (also known as American Express
Black) card, and the bill was cleared.
American Express has taken the first and second slots in a
ranking of credit card preferences among high-net worth
(minimum $5 million) and high-income (at least $200,000
annually) consumers with its American Express Centurion (or
Amex Black) and American Express Platinum. The American
Express Black must also be one of the most exclusive cards
on the block: membership is by invitation only and there's
an annual fee of $2,500.
These two American Express credit cards are typical of the
new credit cards for the elite - expensive card products
that offer equally expensive perks, like access to private
islands and private jets, to those willing to spend amounts
ordinary mortals can only dream about. The American Express
Black cardholder should spend a minimum of $250,000
annually to be a member. You may spend a little less with
the American Express Platinum card ($450 a year annual
fee), but you still get its offer to evacuate injured
American Express members and their families from wherever
vacation location they are to where they can be given
quality medical attention.
Credit cards for the ultra-rich are becoming very
attractive options for credit card issuers. They may not
make much from finance charges but 4% merchant servicing
fees can mean quite a bundle, if the purchase volume is
high enough. That businessman's champagne-laden transaction
could yield American Express at least $4,000 in processing
fees.
Coutts World Mastercard Signia reportedly gives cardholders
the opportunity to live like royalty, after all Queen
Elizabeth II is a Coutts card holder. You pay $700 annual
membership fee, but that is waived if you spend enough
using your Coutts plastic - enough being $100,000 a year.
You cannot apply for the Coutts Purple; membership for this
too is by invitation only.
The market is rich, but the competition is also growing.
Smith Barney has its Chairman's Card ($400 annual
membership) also offers special perks, including a facility
that will set up your quiet dinner meetings at New York's
most exclusive restaurants (and in Los Angeles). Stratus
Rewards Visa is a by-invitation only card that allows you
to fly on private jets when you redeem rewards points.
Bank of America recently launched its Accolades card, which
uses the American Express network and offers the common
(for this elite class of cards) perks like premium tickets
to concerts. The Accolades card has a match-your-donation
offer (up to $2,500 a year) for its philanthropic
cardholders who wish to make charitable contributions.
Membership is for those who have $100,000 of assets in Bank
of America's private banking division.
Why do ultra-rich customers bite? They get the status
symbol, but they also get big benefits. They're in the
stratosphere. But those at ground level also have similar
opportunities to enjoy big perks for a little exclusivity
in their cards. American Express Gold and special Diners
Club credit cards also give you the chance to enjoy
exclusive privileges when you want some.
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Article by Richard Greenwood, the Director of Australian
finance and credit card comparison website
http://www.click4credit.com.au . Click4Credit features
expert articles on a wide range of financial topics
including business credit cards and rewards schemes.
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