American Express OPEN announced Thursday (July 20) its extension of the Lowe’s Business Rewards Card program. The rewards program will continue to enable small business (SMB) card members to earn rewards and receive 5 percent off at Lowe’s when they use the card on eligible purchases.
In a press release, credit card company American Express (AMEX) said the card is geared toward SMBs and developed to help home improvement contractors, building and construction companies, property management companies and others optimize business spending.
“We’re thrilled to extend our partnership with Lowe’s and continue to offer rich value to small businesses,” said Audrey Hendley, senior vice president, American Express global commercial payments, in the press release. “The Lowe’s Business Rewards Card gives small business owners the tools they need to better manage spending and earn rewards they can invest towards future growth.”
The Lowe's Business Rewards Card has no annual fee and allows card members to earn Lowe’s Business Rewards points through eligible Lowe’s purchases and those in other business-specific categories. These categories and point rewards include three times the points per dollar at U.S. restaurants, U.S. office supply stores and on wireless telephone services purchased directly from U.S. service providers; two times the points per dollar on Lowe's purchases; and regular points on other purchases.
Lowe’s business rewards card members also receive 5 percent off every day from Lowe’s on eligible Lowe’s purchases.
American Express' decision to extend the Lowe's Business Rewards Card comes at a time when credit card companies are pulling out all the stops in terms of loyalty rewards programs, doing what they can to enhance customers' shopping experiences.
Within rewards activity, American Express has been competing for customers who typically spend more money via card purchases than other payment methods — and who also pay hefty annual fees. Redemption utilization of membership rewards stood at 95 percent last year, flat compared with prior years.
Against this backdrop, net card fees — a contributor to revenues — grew by 8 percent year-over-year, as did Platinum and Delta card portfolios in the second quarter.