American Express may be facing yet another body blow in the near future, as Fidelity is reportedly considering dropping both American Express and Bank of America. The second-largest mutual fund in the U.S. is reportedly on the hunt for a popular cash back card that comes with better terms.
Terms that, according to Bloomberg, Visa is rather actively trying to provide. Reports indicate that Visa would like to bump American Express off of the Fidelity Investment Rewards card. That card currently is set to route 2 percent of purchases made on it into various types of cash management, brokerage and savings accounts.
American Express has been struggling with partner relationships heavily in 2015. This year they have already suffered the loss of co-branding relationships with both Costco and JetBlue.
This is problematic because Global Network Services — the department that handles Amex cards issued by other banks — is the home of the fastest growth in spending on the American Express network. Currently, co-branded cards represent almost one-third (around 30 percent) of all transactions.