topic Re: AMEX Needs to Think Local in Credit Cards

AMEX Needs to Think Local

atd1970 — Sun, 15 Mar 2015 14:43:39 GMT

Day from hell with Amex. I have had my ED for 2 months, and never had an acceptance issue. Admittedly, I have have always used the CC at "chain" stores.

Today was a nightmare. I tried to use my Amex at "local" stores and restaurants, and was informed 9/10 times that Amex was not accepted.

This is not an issue because I have other CC, but why should I even have to ask?

Amex can never be the "only card that you need in your wallet"

Re: AMEX Needs to Think Local

Anonymous — Sun, 15 Mar 2015 14:48:44 GMT

@atd1970 wrote:
Day from hell with Amex. I have had my ED for 2 months, and never had an acceptance issue. Admittedly, I have have always used the CC at "chain" stores.

Today was a nightmare. I tried to use my Amex at "local" stores and restaurants, and was informed 9/10 times that Amex was not accepted.

This is not an issue because I have other CC, but why should I even have to ask?

Amex can never be the "only card that you need in your wallet"

No offense meant but it's been long known that AMEX is not accepted everywhere and that you need other cards. Acceptance can vary depending on your locale as you'll find many more stores accepting iit n urban areas vs rural. As long as AMEX charges higher swipe fees then they will never be accepted at the same number of stores as Visa/MasterCard so you shouldn't obtain one of their cards with expecting as wide range of acceptance.

Re: AMEX Needs to Think Local

weehoo — Sun, 15 Mar 2015 14:52:41 GMT

Amex is going down the tubes

Re: AMEX Needs to Think Local

Anonymous — Sun, 15 Mar 2015 14:54:54 GMT

@weehoo wrote:
Amex is going down the tubes

Hardly

Re: AMEX Needs to Think Local

NRB525 — Sun, 15 Mar 2015 14:55:28 GMT

While it has been rare for me, unless you carry a wad of cash, AX alone does have risk of embarrassment.

The AX argument is; their main list of good customers spend so many multiples of VISA and MC cardholders, that the individual small businesses who opt out are too marginal to change the central business model. Whether the AX pricing for small merchants is improving I can't say, but they do have a marketing arm for small business.

Re: AMEX Needs to Think Local

Anonymous — Sun, 15 Mar 2015 15:01:34 GMT

Unlikely, since they're a publicly traded company had have ample cash reserves. With that said, they've got to get accepted at more locations. If they don't, they eventually will go down the tubes. There is no reason for the average joe to choose AmEx over a Visa, Mastercard for everyday purchases.

@weehoo wrote:
Amex is going down the tubes

Re: AMEX Needs to Think Local

atd1970 — Sun, 15 Mar 2015 15:01:38 GMT

Agreed.

But as a business model, Amex is failing.

As a consumer of the product, I should not have to ask "Do you take Amex?"

The problem with Restaurants is that the server will take any CC you give them, walk away, swipe the card, and walk back and say "sorry, we don't accept this card."

This is embarrassing.

Re: AMEX Needs to Think Local

Gunnar419 — Sun, 15 Mar 2015 15:02:53 GMT

@atd1970 wrote:
Day from hell with Amex. I have had my ED for 2 months, and never had an acceptance issue. Admittedly, I have have always used the CC at "chain" stores.

Today was a nightmare. I tried to use my Amex at "local" stores and restaurants, and was informed 9/10 times that Amex was not accepted.

This is not an issue because I have other CC, but why should I even have to ask?

Amex can never be the "only card that you need in your wallet"

Although Irish is right that you should have at least been generally aware of Amex's uneven acceptance, I sympathize with you completely. I live in a rural area and about the only places I can use Amex here are at gas stations or (kind of ironically) the very smallest individually owned businesses that use services like Square for cc processing. Unfortunately with the ones using Square the purchase never codes properly for any extra rewards. Just part of being an Amex holder.

It is unfortunate and I hope Amex can find a way to get greater acceptance, but in the meantime it's something we have to live with. Local merchants hate Amex and aren't about to change their attitude.

There's something I don't get about Amex's infamously high swipe fees (the reason so many small businesses don't take their cards). Supposedly the big fees are to fund superior rewards, but these days Amex reward programs aren't any better for most of us ordinary cardholders than the rewards on the other three types of card. Don't get that.

Re: AMEX Needs to Think Local

atd1970 — Sun, 15 Mar 2015 15:10:23 GMT

fitchaber10

Are you being serious LOL

Banks only need to hold 10% in reserve for monies that they are lending, and debt to the bank creates new money.

Re: AMEX Needs to Think Local

Anonymous — Sun, 15 Mar 2015 15:18:47 GMT

@atd1970 wrote:
Agreed.

But as a business model, Amex is failing.

As a consumer of the product, I should not have to ask "Do you take Amex?"

The problem with Restaurants is that the server will take any CC you give them, walk away, swipe the card, and walk back and say "sorry, we don't accept this card."

This is embarrassing.

You realize don't you that AMEX has been around for a long time and had never been as widely accepted as other cards right? Not sure what makes you think you shouldn't have to ask. They have never marketed themselves as a replacement for Visa or Mastercard. You can't complain about something that you voluntarily applied for and was widely known beforehand. It's not like all of a sudden less places started accepting their cards.

Re: AMEX Needs to Think Local

Anonymous — Sun, 15 Mar 2015 15:20:28 GMT

@Gunnar419 wrote:
There's something I don't get about Amex's infamously high swipe fees (the reason so many small businesses don't take their cards). Supposedly the big fees are to fund superior rewards, but these days Amex reward programs aren't any better for most of us ordinary cardholders than the rewards on the other three types of card. Don't get that.

The justification for high swipe fees, to the merchants, was never superior rewards, why would a merchant care that they are paying more to give a customer great rewards! The value proposition is/was that Amex customers are more affluent and will spend more in your store, so the higher swipe fee is money well spent.

As Amex has increased its down-market penetration, this is probably no longer so true (though the affluent customers will still remain). And for certain stores, small groceries rather than art galleries for example, it's probably unconvincing, as no-one is going to spend lots of money, however rich they are, so the extra fee will seem a waste.

Re: AMEX Needs to Think Local

ScarletFever — Sun, 15 Mar 2015 15:23:59 GMT

@atd1970 wrote:
Day from hell with Amex. I have had my ED for 2 months, and never had an acceptance issue. Admittedly, I have have always used the CC at "chain" stores.

Today was a nightmare. I tried to use my Amex at "local" stores and restaurants, and was informed 9/10 times that Amex was not accepted.

This is not an issue because I have other CC, but why should I even have to ask?

Amex can never be the "only card that you need in your wallet"

Not an AMEX issue. It's a "local" merchant issue. Many local merchants are stuck in the seventies by mandating credit card minimums or don't want to pay the extra percentage on swipe fees. Local or not, in today's consumer environment, local merchants need to pick it up and take the hit to drive customers through their doors. Having worked in the wine business and many years in retail wine and spirits, its not even debatable that merchants need to see the forest through the trees and accept all forms of payment.There are several local merchants I no longer patronize because they don't except all cards, or don't accept cards at all. Note to local merchants: AMEX customers are high profit, high volume, preferable customers. Pay the extra percent.

Re: AMEX Needs to Think Local

Anonymous — Sun, 15 Mar 2015 15:23:22 GMT

@ScarletFever wrote:
. Note to local merchants: AMEX customers are high profit, high volume, preferable customers. Pay the extra percent.

Unless they are (like many here) those with scores in the mid 600s who have a charge card to "get in" with Amex.

Re: AMEX Needs to Think Local

Anonymous — Sun, 15 Mar 2015 15:25:29 GMT

@Anonymous wrote:
@ScarletFever wrote:
. Note to local merchants: AMEX customers are high profit, high volume, preferable customers. Pay the extra percent.
Unless they are (like many here) those with scores in the mid 600s who have a charge card to "get in" with Amex.

Wonder if that isn't localized here moreso than the general population. I question if a lot of the public applies for AMEX with mid 600s

Re: AMEX Needs to Think Local

Anonymous — Sun, 15 Mar 2015 15:30:00 GMT

@Anonymous wrote:
@Anonymous wrote:
@ScarletFever wrote:
. Note to local merchants: AMEX customers are high profit, high volume, preferable customers. Pay the extra percent.
Unless they are (like many here) those with scores in the mid 600s who have a charge card to "get in" with Amex.
Wonder if that isn't localized here moreso than the general population. I question if a lot of the public applies for AMEX with mid 600s

Right, but it's clear that Amex is going after a bigger market share at the expense of "quality" with things like the Everyday card (so not necessarily low scores, but people with less disposible income)

Re: AMEX Needs to Think Local

Anonymous — Sun, 15 Mar 2015 15:33:44 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@ScarletFever wrote:
. Note to local merchants: AMEX customers are high profit, high volume, preferable customers. Pay the extra percent.
Unless they are (like many here) those with scores in the mid 600s who have a charge card to "get in" with Amex.
Wonder if that isn't localized here moreso than the general population. I question if a lot of the public applies for AMEX with mid 600s
Right, but it's clear that Amex is going after a bigger market share at the expense of "quality" with things like the Everyday card (so not necessarily low scores, but people with less disposible income)

Good point. I'm interested to see what if any improvements they make to the Platinum card after their recently announced improvement to the Gold

Re: AMEX Needs to Think Local

thom02099 — Sun, 15 Mar 2015 15:48:36 GMT

@Anonymous wrote:
@atd1970 wrote:
Day from hell with Amex. I have had my ED for 2 months, and never had an acceptance issue. Admittedly, I have have always used the CC at "chain" stores.

Today was a nightmare. I tried to use my Amex at "local" stores and restaurants, and was informed 9/10 times that Amex was not accepted.

This is not an issue because I have other CC, but why should I even have to ask?

Amex can never be the "only card that you need in your wallet"

No offense meant but it's been long known that AMEX is not accepted everywhere and that you need other cards. Acceptance can vary depending on your locale as you'll find many more stores accepting iit n urban areas vs rural. As long as AMEX charges higher swipe fees then they will never be accepted at the same number of stores as Visa/MasterCard so you shouldn't obtain one of their cards with expecting as wide range of acceptance.

+1. It's curious that one would apply for a card, any card, without knowing something about, not only the card, but the company backing it. The American Express Company has been around since 1850. It is only fairly recently (since the late 50s) that American Express has been involved in credit cards...that's 100 years AFTER their founding. Part of that card history, from the very beginning, is that they are not accepted everywhere, nor strive to be.

And in a changing world, AMEX continues to change to meet the demands of that changing world. "Local" will become a very small percentage of future business, as one sees by the continuing explosive growth of on-line shopping. I have yet to see any on-line retailer, at least in the markets that I've shopped, that DOESN'T accept AMEX. I'm sure there may be some out there, but they are in a minority.

American Express Company has a secure future, with well over 100 million cards out there and a portfolio that meets the needs of it's target market. It's not Visa. It's not Mastercard. Nor does it strive to be.

Re: AMEX Needs to Think Local

Anonymous — Sun, 15 Mar 2015 15:49:16 GMT

It's the merchant that isn't accepting amex cards. And you place the blame on amex?

Re: AMEX Needs to Think Local

NRB525 — Sun, 15 Mar 2015 15:53:53 GMT

@atd1970 wrote:
Agreed.

But as a business model, Amex is failing.

As a consumer of the product, I should not have to ask "Do you take Amex?"

The problem with Restaurants is that the server will take any CC you give them, walk away, swipe the card, and walk back and say "sorry, we don't accept this card."

This is embarrassing.

The solution is, as you walk in the front door, take a quick inventory of the CC signage on the door. "We accept..."

If no blue square, don't try to use the AX, or ask first.

Re: AMEX Needs to Think Local

atd1970 — Sun, 15 Mar 2015 15:53:58 GMT

At the of the day. The legacy city people become suburbanites. After this, these people move into rural populations. However, Amex doesn't work in those communities.