American Express has offered some of its U.S. cardholders $300 to close their accounts.
While American Express won't say how many customers were offered the deal or the total of their credit card balances, a spokeswoman for the company said the move was aimed at "managing credit risk based on the customers overall credit profile".
Customers accepting the offer are required to pay their outstanding balance in full to receive a $300 pre-paid credit card.
The move is part of a strategy by the company to manage their credit risk after the U.S. economy deteriorated. Rising unemployment, higher-than-expected credit card delinquencies and decreased consumer spending all contributed to the move.
American Express were particularly hard-hit in the consumer credit market after recent expansion into the mid-range market. The company has traditionally focused on premium and corporate credit cards.
The firm is also aiming to cut expenses by US$1.8 billion in 2009.
