American Express suffers ‘technical issues’: should you carry more than one credit card?

Some American Express credit card users have been unable to make payments following ‘technical issues’. So, is this a reason to carry more than one card?

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Paying for online shopping using a credit card

Image source: Getty Images

On Friday 1 April, American Express revealed it was experiencing ‘multiple technical issues’. The situation has left many of its credit card users unable to make payments.

So, does this latest issue highlight the importance of holding more than one credit card? Let’s take a look.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

[top_pitch]

What’s the situation with American Express?

On Friday 1 April, American Express acknowledged on its Twitter account that a number of its users were experiencing issues with making payments. The company tweeted: “We are currently experiencing multiple technical issues impacting our servicing and payment systems.”

The provider suggested that while the issues were ongoing, cardholders who wished to make payments should do so via bank transfer. Amex also thanked users for their patience. 

The card issuer’s Twitter post followed a number of its cardholders raising concerns on the social media platform about being unable to send payments.

It also seems as though the situation is not just impacting its UK customer base. There have also been reports of its users in Germany having similar problems.

[middle_pitch]

What credit cards does Amex offer?

Amex offers a variety of reward credit cards giving cashback or rewards every time you spend on them. The card provider’s current offering is split between free cards and those with a yearly fee. Unsurprisingly, its cards with a fee are more generous than those without.

That said, some Amex fee-free cards may still be considered a decent option for those looking to be rewarded for their everyday spending. 

For example, the Amex Platinum Cashback Everyday gives 5% cashback for three months (up to a maximum of £100 cashback). After this, the cashback rate is 0.5% up to £10,000, and then 1% on spending above this. Importantly, in order to get any cashback at all, you must spend at least £3,000 per year on the card. The representative APR is 24.7%.

Another popular card is the Amex Preferred Reward Gold. It gives 20,000 bonus ‘Membership Rewards’ points if you spend £3,000 on the card within the first three months. You also earn one point per £1 spent on top of this. As an added bonus, the card throws in two free airport lounge passes a year. 

However, this card does come with a £140 annual fee, though this is waived in the first year. As a result, it’s possible to bag the bonus, cancel the card within your first year and pay nothing. The representative APR on this card, including the fee, is 60.1%.

For more options, take a look at the Motley Fool’s top-rated reward credit cards.

Is it wise to carry more than one credit card?

While the ongoing issues with Amex are likely to be resolved shortly, the disruption to its system does outline the importance of not relying on one payment processor. That’s because technical issues can happen – even with multinational banks and/or payment processors.

So, if you only have cards issued by a single bank or payment processor (Mastercard, Visa, American Express) then its probably worth ensuring you have an alternative way of making payments.

It’s also worth knowing that technical issues are rarely exclusive to one type of plastic. So, if you’re reluctant to sign up for a new credit card, consider a debit card or even a prepaid card.

Are you looking for a new credit card? If you are keen to get a new credit card, it’s worth carefully considering what you’ll use it for.

So, whether you need a card to borrow at 0%, boost your credit score, or help pay down debt, take a look at The Motley Fool’s guide to the different types of credit cards.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »