AMEX Needs to Think Local

[Anonymous]

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@Gunnar419 wrote:

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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.

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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.

[ScarletFever]

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@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"

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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.

[Anonymous]

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@ScarletFever wrote:

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

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

[Anonymous]

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@Anonymous wrote:

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@ScarletFever wrote:

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

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

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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

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@ScarletFever wrote:

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

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

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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

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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)

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@ScarletFever wrote:

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

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

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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

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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)

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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

[thom02099]

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@Anonymous wrote:

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@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"

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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.

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+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. 

[Anonymous]

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

[NRB525]

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@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.

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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.

[atd1970]

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.