American Express (Amex)

American Express, commonly called Amex, is both a global payment card network and an card issuer. Unlike Visa and Mastercard, which operate purely as network infrastructure connecting banks and merchants, American Express issues cards directly to consumers and businesses and manages the entire ecosystem — the card, the network, and the customer relationship — in house.

In India, American Express operates as a licensed bank and as a card network. Amex cards are issued by American Express Banking Corp., which is a wholly owned subsidiary of the American Express Company. When you use an Amex card in India, the transaction runs on the Amex network. When you use it internationally, it runs on the Amex global network.

Amex cards in India are broadly of two types: charge cards and credit cards. The Amex Membership Rewards charge card has no pre-set spending limit and requires you to pay your balance in full each month — it is not a revolving credit product. Amex also offers true credit cards such as the Amex SmartEarn and Amex Platinum travel card, which allow revolving credit with a minimum payment option.

Acceptance is the most important practical difference between Amex and other networks in India. While Amex has strong acceptance at premium hotels, large restaurant chains, airline offices, and major e-commerce platforms in India, its merchant network is smaller than Visa or Mastercard. Many small merchants, neighbourhood stores, and some government-authorised petrol pumps do not accept Amex. Before relying on an Amex card for daily spending, it is worth confirming that the merchants you use most frequently accept it.

Amex operates its own reward programme called Membership Rewards, which earns points on every transaction. Points can be redeemed for gift vouchers, statement credit, flight tickets, and hotel stays. Some premium Amex cards also offer complimentary lounge access — but this is to Amex’s own network of lounges in India, not to the broader Priority Pass or MasterCard lounge networks. The HDFC Infinia or Axis Reserve, which offer unlimited Priority Pass visits, may be better choices if lounge access is a priority.

Amex cards in India are generally targeted at high-spending customers. Annual fees range from ₹1,500 for entry-level cards to ₹5,00,000 for the super-premium Centurion card, which is invitation-only. The Platinum card, at ₹60,000 annual fee, offers ₹1,25,000 in annual dining and travel credits, airport lounge access, and premium concierge services — for customers who can fully utilise the bundled benefits, the fee can be justified.

On foreign currency transactions, Amex charges a forex mark-up of approximately 2.5% to 3% on the converted amount, plus GST. This is comparable to other premium cards but higher than some mass-market cards that charge 1% on forex transactions.