The first thing you'll notice about the American Express Blue Card is the way it looks. It's different. With great regularity, sales clerks will stop and stare at the card, turning it over, and looking perplexed. Blue is not your Dad's Amex! The shining blue hologram in the middle of the card is an almost mesmerizing pool of blue emanating slight rainbow refractions of light. And then there's the embedded smart chip and the pale metallic silver background. Very nice.

Having worked in the credit card industry for the past 9 years, I have more than a passing interest in credit cards. I'm somewhat of a collector, and the Blue card is my newest and most unique acquisition.

- First things first... -

What is a "Smart Card"?

This is the newest technology in credit cards. A small microchip is actually embedded in the card giving it greater information capability than the plain old magnetic strip. Right now the chip coexists with the existing technology, so don't worry that the world is not prepared for this new step yet.

Main Uses of the Smart Card technology:

- Conduct secure transactions over the Internet using the reader provided by Amex Blue (readers are free until 12/31/00 after which they will cost $25 available from 1.888.BLUE.741).

- Can store information about multiple accounts (you'll be able to carry the Blue card but use it to access your other accounts, both credit and debit)

- You'll be able to store cash in your account enabling you to use the smart card at previously cash only merchants: ie: Laundromats, vending machines, newsstands.

- Houses certificate of authenticity for added security.


-- Meet Blue!... --

Great Benefits

• Interest Rate

Unlike traditional Amex cards, you are able to revolve a balance, if you care to, with Blue. The interest rate for the first 6 months on purchases is 0%. Yeah, that's right, 0%, but on purchases only, you are not able to transfer a balance from another card and get that rate. The normal APR on the card is as low as a 9.99% fixed rate (assuming you have a good credit record). Keep in mind, as with most all credit cards these days, if you make a late payment your interest rate will go up quite significantly.

• No Annual Fee

Yep, all this coolness for free!

• Purchase Protection Plan

Safeguards your purchases against loss, accidental damage, and theft for 90 days. Make sure you keep all your receipts and keep in mind you will have to fill out a myriad of forms in order to submit a claim to the insurance carrier who administers this program on behalf of Amex.

• Best Value Guarantee

This benefit allows that if within 60 days of your purchase you see the same item in a printed and dated advertisement for less, Amex will refund the difference to you, up to $250. Not bad if you can get your hands on the required documentation.

• Return Protection

If, within 90 days of your purchase, you try to return the item to the store and they won't take it back, you are able to send the item to Amex they will refund the price. The limitations are $300 per item and $1,000 per year total. While it is a little known fact that Visa/MasterCard regulations stipulate that items, and even services, with which the cardholder is entirely dissatisfied must be taken back by the merchant and that merchant must issue a credit, it's still nice that Amex has made and publicized their own process to allow consumers access to this benefit.

• Online and Offline Shopping Guarantee

You will not be held responsible for any unauthorized charges either online or offline. There are only a handful of companies who choose to go this route on paper. In practice though, I have yet to see a credit card company that will hold a cardmember responsible for fraudulent use, even though they can stick you with the first $50 if they want to. Kudos to Amex for coming right out and saying it.

• Awesome Web Site

Blue provides its cardholders the ability to manage and pay their account online. The site is user friendly and comprehensive and is located at www.americanexpress.com/igotblue. It is also, unfortunately, down more than I'd like to see. The folks at Amex will say it's "updating". We say that too at my bank when the site is down. ;)

• Pay by Phone

This is very convenient and it's free. Once you have registered your Amex account and provided your checking account information, you can call 800.472.9297 for the automated pay by phone system. It takes about 30 seconds to pay your bill.

• Miscellaneous

- Free additional cards for authorized users (remember you are responsible for paying the bill!)

- Supplemental Car Rental Insurance (pay for your rental car using your Blue card and save some money)

- Travel Accident Insurance (charge the full price of your ticket with your Blue card and you're covered for up to $100,000, God forbid)

- Global Assist Hotline: toll free emergency medical and legal referrals worldwide

- Free yearend summary of charges sent automatically

- 24 hour customer service


- And now for something completely different... -

• The Online Wallet

If you're any kind of an internet shopper you've got to love this! Get the reader from Blue online and hook it up to your computer. Because your actual card must be in the reader, and in addition you must enter a PIN, this is one of the safest and secure ways to shop online. Even folks previously hesitant to shop online (though I don't know why!) will be comfortable with this system. By the way, Blue utilizes SSL encryption. What it lacks in convenience initially (you have to have the reader, your card, and a PIN) it more than makes up for in efficiency down the line:

- Automatically fills in order forms and completes purchases at a growing list of participating online sites

- Records your online purchase history

- Sets up and remembers multiple shipping addresses

- Downloads your information into MS Money or Quicken

- Provides receipts in your wallet for both purchases and refunds in addition to anything the merchant provides

- Stores site specific Ids and passwords

- Express Shopper: in its infancy (as are many of the features on Blue) this provides a search engine to help find what you're looking to buy including price finders, product locators, and special discounts

- Favorite Sites: store pertinent information on your shopping faves so when you return to buy more you don't have to input all your preferences and info again.

• The Reader

The reader is an external device that connects to your PC. It looks similar to an external floppy drive, but it has a blue hologram in the middle of it, just like the card. The reader has a cute little green light that comes on when your card is properly inserted and flashes on and off similar to modem lights when the reader is talking to your smart chip. The reader allows you to take full advantage of the unique features of smart card technology. Get one now while they're free! Come 12/31/00 you will have to pay $25 for a reader. I received my reader via next day air 2 days after I ordered it! It comes with excellent documentation and instructions along with the necessary program on a CD. In addition to being able to read information, the reader will also allow new information to be downloaded into the chip on your card. Attention: Mac users, The Blue reader will not work with your OS.

• BlueLoot

This is the special rewards program for Blue users. You must sign up for the program once you get your Blue card; you will not automatically be enrolled. BlueLoot points are assessed at 1 point per $1 spent on your Blue card. BlueLoot points are good for 3 years and can be redeemed for a wide variety of neat merchandise. Some examples: Sony Playstation, Gameboy, 3Com PalmPilot V, Diamond MP3 Player, Dirt Devil Wet/Dry Vac, Kelty 2 Pole Tent, etc!


While Amex is one of the top 10 issuers (based on outstandings) of credit cards, American Express is not part of the Visa/MasterCard network. What this means to us, as consumers, is that Amex is accepted in about half as many places as Visa/MasterCard. I would not recommend having an Amex card as the only card you carry because you're going to find yourself out of luck (and money!) many times.

I have found the service I receive from Amex to be superior. I love the card. I love being a part of the cutting edge of this new smart card technology. It will be interesting to see how Amex takes advantage of all the options available with the embedded chip and really develops Blue into a big player. I would recommend getting on board with this if you appreciate the promise of new technology and want to get the reader while it's free. Additionally, Amex offers very consumer friendly benefits. Get Blue? You betcha!


Further information, along with an online application, can be obtained by visiting the website at www.americanexpress.com/blue or calling 1.888.BLUE.600.



For more information on matters relating to your credit and credit cards, here are some other reviews that may be of interest:


• How to get the LOWEST possible APR on your Credit Cards from an Industry Insider
http://creditexpert.epinions.com/finc-review-6176-81D30EC-38DD6721-prod3

• An Insiders Comprehensive Guide to Avoiding Credit Card Fees
http://creditexpert.epinions.com/finc-review-7D30-14D8F7F-3894936A-prod2

• What you need to know about Credit Card Promo Rates from an Industry Insider
http://creditexpert.epinions.com/finc-review-73A7-381984A-38D194D4-prod4

• Establishing Credit: Tips from an Industry Insider
http://creditexpert.epinions.com/finc-review-69E0-6DFB00-38BEFECC-bd3



Recommended: Yes