American Express credit cards would no longer be functional in Bulgaria. The official act was effective last February 14 this year as the exclusive representative for the country - Postbank ordered to stop any operations in the country.
For those who still have pending payments with the card, it will only be valid until the 14th of July this year and pass the given date; any card under American Express will be invalid.
American Express in Bulgaria offers other alternative credit cards such as Mastercard and Visa. It was revealed by the post bank that the reason behind the cancellation of operations in the country was a failure to renew licenses as it was under suspension by the agreements with the European Union. Banking Experts, however, reasoned out that the cancellation was due to the rising competition of credit card markets in the said country.
As the first credit card issuer and provider of American Express Gold, American Express Green and EuroLine American Express, Postbank announced the news on its website, as well as sending out notifications through letters of all users of the said products in Bulgaria. In further news, the issuance and reissuance of the three credit card variants will be officially stopped as it was stated by the bank’s reports. Nonetheless, the remaining four months will be for the other matters that are needed to be accomplished and after the given timeline, operations would not continue.
Bulgaria was said to be the first one and it is expected that other European countries would do the same thing, according to Postbank.
Users for these sets of credit cards have benefits such as 55 days interest-free grace period, limited insurance restrictions and free discharge for road accidents, unlike its other daily competitors according to reports.
It is currently unclear as to why American Express chose to terminate its license arrangements in the nations of Bulgaria and other Eastern Europe, but again, it is highly possible that it was an action against the new policies of the European Union in which commenced last year with the ruling of putting a ceiling on the prices charged by suppliers of card services. As for the other reason, it was likely because of the rising number of competitors which offers card transactions.
American Express had a bearish trend over the past days and in its last session; the credit card giant displayed a bull candle with an opening of 79.18 and closed at 79.30. It had a high of 79.67 and a low of 78.81. The RSI level for AmEx was at 52.57, a slight rise from Wednesday’s 50.70. A buy signal is still recommended as Coppock Curve is still on a positive range, specifically at 1.40. However, the bearish trend is also visible on this indicator and AmEx might be close to reaching the negative zone if such performance continues.
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