topic Re: Why don't some places accept AMEX? in Credit Cards

Why don't some places accept AMEX?

bearsfan34 — Wed, 15 Feb 2012 23:37:58 GMT

Someone told me it's because it costs more to process the transaction. Is that true? Seems strange to me.

Re: Why don't some places accept AMEX?

namvet — Wed, 15 Feb 2012 23:40:54 GMT

@bearsfan34 wrote:
Someone told me it's because it costs more to process the transaction. Is that true? Seems strange to me.

That is true!

Re: Why don't some places accept AMEX?

LS2982 — Wed, 15 Feb 2012 23:42:36 GMT

@bearsfan34 wrote:
Someone told me it's because it costs more to process the transaction. Is that true? Seems strange to me.

True. AMEX likes to bully their merchants for more money.

Re: Why don't some places accept AMEX?

Imhotrodcrazy — Wed, 15 Feb 2012 23:43:43 GMT

I have had two merchants refuse to take my AMEX card. When I asked why, both told me because of the higher fees, so I gave them my Visa. I have only had my card two months and already I know where not to present it around town.

Re: Why don't some places accept AMEX?

Creditaddict — Wed, 15 Feb 2012 23:47:53 GMT

@bearsfan34 wrote:
Someone told me it's because it costs more to process the transaction. Is that true? Seems strange to me.

It kind of irritates me when an employee says they don't accept it because it "costs more" because in my experience when I have ever said something to that person they are like oh really I didn't know, that's just what I heard.....

Yes it's more but to me it's just the cost of business... Last year I think big discussion on this for small business' etc. but I still believe you just pay it.

I had 2.49% with Visa/MC and American Express was 3.25% but I paid no per transaction fees or statement fees, I paid $.10 per transaction plus my fee with Visa/MC and had $15.00 minimum fees to pay each month rather I processed enough to reach $15... I was very small business so average that out and American Express was cheaper!!!

Now you want to talk about fees, Discover was TERRIBLE for me! (like 5%)

Re: Why don't some places accept AMEX?

Anonymous — Wed, 15 Feb 2012 23:51:28 GMT

Yes AMEX does charge higher interchange fees than Visa and Mastercard and that is why AMEX is not accepted in as many places.

AMEX caters, at least historically, to more affluent cardmembers that love to spend money. So that is how they were able to charge higher fees with the promise that if you accept AMEX, you are accepting the business of well to do customers with Gold and Platinum cards that love to spend money and what business owner wouldnt want that?

Re: Why don't some places accept AMEX?

bearsfan34 — Wed, 15 Feb 2012 23:56:19 GMT

@Creditaddict wrote:
@bearsfan34 wrote:
Someone told me it's because it costs more to process the transaction. Is that true? Seems strange to me.
It kind of irritates me when an employee says they don't accept it because it "costs more" because in my experience when I have ever said something to that person they are like oh really I didn't know, that's just what I heard.....
Yes it's more but to me it's just the cost of business... Last year I think big discussion on this for small business' etc. but I still believe you just pay it.
I had 2.49% with Visa/MC and American Express was 3.25% but I paid no per transaction fees or statement fees, I paid $.10 per transaction plus my fee with Visa/MC and had $15.00 minimum fees to pay each month rather I processed enough to reach $15... I was very small business so average that out and American Express was cheaper!!!
Now you want to talk about fees, Discover was TERRIBLE for me! (like 5%)

Hmmm, maybe I will tell my favorite sushi place this!

Re: Why don't some places accept AMEX?

Anonymous — Thu, 16 Feb 2012 00:15:42 GMT

The funny thing? Those) who refuse to accept Amex due to 'higher fees' are ignoant and don't realize that it's really less than 1/2 of 1% difference between Amex and Visa. On top of that, Visa is more expensive than MC, so they're hypocrits if they're worried about 'higher costs', because Visa already costs more than MC. And even MORE, if they really cared about the percentage that much, they'd accept nothing BUT cash.

There's a reason why the biggest businesses accept all 4, and it's not because they can "eat the costs', but because they realize the difference between the big 4 is so minimal it's idiotic to throw a fit over it.

My family owns a small business. We accpet Amex. They've not once thought about not accepting it because they realize that its difference is minimal. Either you accept credit cards or you don't.

Re: Why don't some places accept AMEX?

namvet — Thu, 16 Feb 2012 00:19:32 GMT

You have to spend money to Make Money! Not all understand this.

Re: Why don't some places accept AMEX?

laboi_22 — Thu, 16 Feb 2012 00:48:15 GMT

I was a little flustered with a local bakery recently. I decided to place all of my business expenses on my AMEX to assist me with UTL. It irritates me when I need to make a purchase and they don't accept AMEX. I went to get a wonderful king cake for a client and the bakery doesn't take AMEX. When I asked why not the girl said because the owners decided to stop because someone made a $9 purchase and it costs the company/merchant $15 because of the AMEX fees. Not sure I understood that but that's what she said word for word. I said well most drug reps/sales reps work with companies that issue AMEX cards to their sales people so you are missing out on a large amount of business since they have nice cakes for clients. I think this is crazy. I've known many a drug rep who are/have been my collegues who are provided with corporate AMEX that is all they are allowed to use (not my company they are an exception) but they are missing out on good business. We spend lots of money. I used my Visa but will never use them again. I'll settle for the small bakery that takes AMEX but have sub-par king cakes. Hey you win some/you lose some!

Re: Why don't some places accept AMEX?

Revelate — Thu, 16 Feb 2012 01:43:19 GMT

@namvet wrote:
You have to spend money to Make Money! Not all understand this.

Not entirely applicable to this discussion: there's epending good money, and then there's wasting it. If your business plays in the margins, even a 0.5% differential is non-trivial if you're looking at 3-5% income to begin with on any given trasaction.

There are multiple business models that I and a buddy have kicked around over the years, and most of them would expect credit cards for payment. Everyone has a VISA / MC somewhere, so if it turns out Amex is too expensive on whatever one or two that we pick, we won't accept it; however, we absolutely will do a comparison of the networks, perhaps it as CA stated and my old experience from retail where I had access to the books is no longer applicable.

Re: Why don't some places accept AMEX?

Anonymous — Thu, 16 Feb 2012 02:09:04 GMT

I honestly think it depends on where you live. I find it that discover is accepted far less than amex. But, thats just from my personal experience.

Re: Why don't some places accept AMEX?

frogfan12 — Thu, 16 Feb 2012 02:47:07 GMT

@Anonymous wrote:
The funny thing? Those) who refuse to accept Amex due to 'higher fees' are ignoant and don't realize that it's really less than 1/2 of 1% difference between Amex and Visa. On top of that, Visa is more expensive than MC, so they're hypocrits if they're worried about 'higher costs', because Visa already costs more than MC. And even MORE, if they really cared about the percentage that much, they'd accept nothing BUT cash.

There's a reason why the biggest businesses accept all 4, and it's not because they can "eat the costs', but because they realize the difference between the big 4 is so minimal it's idiotic to throw a fit over it.

My family owns a small business. We accpet Amex. They've not once thought about not accepting it because they realize that its difference is minimal. Either you accept credit cards or you don't.

Re: Why don't some places accept AMEX?

afbar1114 — Thu, 16 Feb 2012 02:59:17 GMT

@Anonymous wrote:
Yes AMEX does charge higher interchange fees than Visa and Mastercard and that is why AMEX is not accepted in as many places.

AMEX caters, at least historically, to more affluent cardmembers that love to spend money. So that is how they were able to charge higher fees with the promise that if you accept AMEX, you are accepting the business of well to do customers with Gold and Platinum cards that love to spend money and what business owner wouldnt want that?

i work for a major company that is in the top 50 of fortune 500.. i see amex every day if i had to gues i would say 2 out 5 are amex everything is discover, vis, or m/c. but the amex customer avgs about $125

Re: Why don't some places accept AMEX?

bichonmom — Thu, 16 Feb 2012 03:03:52 GMT

It does cost more. You also have to set it up separately with your merchant account/gateway provider. It's more work and more expensive, but when I set up my merchant account, I never even considered *not* taking Amex.

Ironically, the merchant company didn't encourage me to do so, and I had to deal with Amex separately to get it done. Plus, it meant a second credit check! With Discover, the merchant company handled all of the setup, along with MC/Visa. So, in my experience, the merchant company didn't really want me to do Amex. Well, they didn't tell me not to, but they sure didn't make it easy. So, it is possible that other merchants have the same issue.

Personally, I'm in business to make money, and if I want to make money, I have to make it as easy as I can for my customers. One way I do that is by accepting all 4 major CCs. I would hate to lose income because someone wanted to use their Amex, and I didn't take it. I think it's a poor business decision not to take all 4. That said, Amex is a tiny % of the CCs I get, and I don't think I've ever had a Discover sale.

Re: Why don't some places accept AMEX?

LS2982 — Thu, 16 Feb 2012 03:05:14 GMT

@bichonmom wrote:
It does cost more. You also have to set it up separately with your merchant account/gateway provider. It's more work and more expensive, but when I set up my merchant account, I never even considered *not* taking Amex.

Ironically, the merchant company didn't encourage me to do so, and I had to deal with Amex separately to get it done. Plus, it meant a second credit check! With Discover, the merchant company handled all of the setup, along with MC/Visa. So, in my experience, the merchant company didn't really want me to do Amex. Well, they didn't tell me not to, but they sure didn't make it easy. So, it is possible that other merchants have the same issue.

Personally, I'm in business to make money, and if I want to make money, I have to make it as easy as I can for my customers. One way I do that is by accepting all 4 major CCs. I would hate to lose income because someone wanted to use their Amex, and I didn't take it. I think it's a poor business decision not to take all 4. That said, Amex is a tiny % of the CCs I get, and I don't think I've ever had a Discover sale.

What is your business if you don't mind me asking?

Re: Why don't some places accept AMEX?

Anonymous — Thu, 16 Feb 2012 03:24:29 GMT

So far, I have yet to shop anywhere that did not take American Express. I live in the Orange County area of Southern California -- maybe that makes a difference?

Re: Why don't some places accept AMEX?

CS800 — Thu, 16 Feb 2012 03:27:45 GMT

While at the gun store today, a guy whooped out his Green AMEX only to be told that they do not accept amex. Their fees are too high.

Re: Why don't some places accept AMEX?

Anonymous — Thu, 16 Feb 2012 03:30:36 GMT

The only places I've been unable to use my Amex are a few local gun shops. Amex acceptance is very widespread in my area.

Re: Why don't some places accept AMEX?

Revelate — Thu, 16 Feb 2012 03:32:39 GMT

@Anonymous wrote:
So far, I have yet to shop anywhere that did not take American Express. I live in the Orange County area of Southern California -- maybe that makes a difference?

I think it might. I live in LA county and everywhere takes my goofy Amex pre-paid... lots of people have them here, including what I suspect might be a higher per-capita Amex membership in OC than perhaps anywhere else on the planet.