MasterCard, Amex Report Strong Quarterly Card Spending

Both American Express and MasterCard have reported surges in card spending volumes in the third quarter of the year, and American Express' results indicate these increase are due in part to growth in corporate card spending.

American Express last week reported its global commercial services division saw revenues net of interest expense increase by 12 percent to $1.1 billion in the third quarter of 2007, compared with the third quarter of 2006. That increase reflects higher spending by its corporate card members, according to American Express.

Net income from the commercial services division was up 29 percent to $135 million, American Express reported. Expenses for the division, which include marketing, promotion, rewards and card member services, were up 8 percent.

MasterCard yesterday reported its net revenues in the third quarter up 20.1 percent to $1.08 billion, compared with the same period in 2006. This increase was driven in part by a 13.3 percent increase in the number of processed transactions, according to MasterCard, which did not break out corporate card transactions in its report.

Overall, MasterCard's purchase volume growth increases were less dramatic in the United States than worldwide. Considering only MasterCard's credit and charge programs, volume growth was up 7.1 percent in the United States, compared with a 13.9 percent increase worldwide.