This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.
In the battle for "cool history," American Express (NYSE: AXP) wins this one hands down. The company was started in 1850 as an express delivery service. At the time, the U.S. Postal Service was slow and unreliable, and sending anything important or valuable was ill-advised. The American Express Company was known for its "expressmen," who delivered valuable packages all over the country, usually on horseback or with stagecoaches.
After establishing a strong reputation for delivery service, the company later decided to phase out deliveries and move into financial services. They had delivered countless documents for banks, and the money business was appealing. American Express first offered money orders in 1882, followed by travelers cheques in 1891. The travelers cheque business was the main focus of the company for many years.
In 1958, the company gave in to market pressures and issued its first charge card. For almost 30 years, though, the card was not to be used as a "credit" card. All balances were to be paid in full each month. In 1987, that changed as American Express finally issued a card that allowed revolving balances.
Visa is the most widely-used credit card brand around the world, but its history is not nearly as colorful as American Express. It all started when Bank of America created the BankAmericard in 1958, a revolving credit card. In 1970, National BankAmericard Inc. was incorporated, but the company name was changed to Visa six years later. It does tons of credit card, debit card, and ATM transaction business, and Visa Inc. (NYSE: V) went public earlier this year. The end.
Vote in our poll for American Express or Visa as your preferred brand, and let us know in the comments why you love it.
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Reader Comments (Page 1 of 1)
4-29-2008 @ 11:08AM
willywonka said...
This is the second article in this series using the word "cache", instead of the correct word "cachet".
cache. 1. A hiding place for supplies, as on a hiking trip, or any supplies so hidden. 2. Supplies suspended in the air to prevent animals from getting to them.
A cache (pronounced CASH) is a place to store something temporarily.
cachet. Fr. adj. Possessed of charm, allure, or attraction. Enjoying a good reputation.
See the difference?
4-29-2008 @ 11:18AM
Tracy Coenen said...
Sorry dude, but you're criticizing the wrong article. That word was never used here.
5-01-2008 @ 6:16PM
colleengwinner06 said...
Perhaps not as colorful in terms of changing from an express co. to financial but I get a lot more excited about Visa and their recent IPO; they made history with one of the largest IPOs ever, raising apx.$17 billion.
5-02-2008 @ 11:09AM
V. Crainich said...
I have had an American Express card ever since 1969 and have used it throughout the world. 'I would not leave without it'.
It is absolutely better than VISA (which I also have owned for many many years, but only seldom use). The significant difference that I find between the cards always comes clearly to mind when I have a charge dispute--of any kind, whatsoever. AMEX always handles the problem so professionally. With VISA, trying to get a dispute resolved is nothing short of pure AGONY!
Once, I lost my AMEX card in Russia and was leaving the next day for Amsterdam. However, AMEX personally delivered a new card to me THE NEXT DAY in Amsterdam, at my hotel; along with $2,000 of travelers checks. With VISA, I would certainly still be waiting.