American Express Co. is hoping to score a hole-in-one with a new card that offers rebates on golf accessories and travel.
The rebates can be redeemed for Callaway Golf equipment, Bobby Jones apparel, instruction at David Leadbetter Golf Academy, fee discounts at courses managed by American Golf Corp., and packages at Marriott and Hilton golf resorts.
"The demographics of this market fit into the kind of customers we would like to have," said Brian Kleinberg, general manager of American Express' consumer card services group.
According to New York-based American Express, there are 25 million golfers in the United States, and half of them play golf more than eight times a year. The sport generates $27 billion in sales annually, and the average household income of a golfer is $53,000.
The card carries no annual fee and offers a 7.9% rate for the first six months. Thereafter, the rate jumps to the prime rate plus 9.9%, which currently amounts to 18.15%. The interest rate structure is in line with other cobranded cards launched recently by American Express, including its Hilton and Sheraton cards.