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While American Express Co.'s new advertising campaign takes on payment products such as debit, one analyst say promoting charge cards over credit and debit cards may be a new trend. "This is an international phenomenon, not just AmEx in the U.S.," says Megan Bramlette, managing director at Auriemma Consulting Group. While credit was king for some time, the playing field is changing with President Obama's Credit Card Accountability, Responsibility and Disclosure Act, which curtails how issuers market and offer credit, and with the economic climate for credit, which is affecting the overseas markets as well as the U.S., she says. "The consumer sentiment is different now," says Bramlette. "People are wary of credit cards now and, more importantly, people are wary of debt." Charge cards represent a throwback option to resolve a new problem, she says. "Consumers are used to paying their bills on time, and the concept of charge is not new," Bramlette says. The charge card is a proposition that appeals to many consumers in today's market. "One huge dagger for debit is that identity-theft protection is minimal. That is the real driver in people's decisions [to choose charge over debit,] Bramlette says. AmEx's print and television ads, which launched earlier this month (CardLine, 9/2), juxtapose purchases made with charge cards versus those made with debit or other payment products. While debit is not the sole target, the ads point out some debit deficiencies, AmEx says. "We want consumers to see how they can take control of their finances and still stay out of debt while making their money work harder for them than other cards may allow," an AmEx spokesperson said in an e-mail statement. "Specifically in the ads, when we talk about how charge helps you build a credit history, that is not something that debit can do. Not all cards offer protections or valuable rewards programs."
