Amex acceptance issues

[rgd51]

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@Aim_High wrote:

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@ways2go wrote:

Why do people keep saying to pay in full or don't carry a balance with them?  Maybe that is for their charge cards but I haven't found that is the case for their revolvers.   What is the point of offering a revolver,   if you want your customers to pay in full every month?  I have a balance on my BCE and my everyday card.   I've always had a balance since I've had them.   I've have gotten auto cli's  on both and since Feb,  I have gotten 3 on BCE.  I getting pre-approved offers on all their cards and the crazy personal loan.

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Many lenders have varying sensitivities to carrying a balance, @ways2go, and not just AMEX.  Yes, they are offering the ability to carry a balance and of course they enjoy earning interest charges off those balances.  But the interest charges are to offset the risk of default.  The larger a balance a consumer carries or the longer a consumer carries a balance, the more risk the lender perceives for risk of default.  

I believe one reason they may prefer transactors (as @coldfusion mentioned) has to do with their business model.  They have one of the more dominant positions as a US credit card issuer but they are not one of the largest banks in terms of assets.  In 2020, they had the third largest US domestic market share (11.3%) behind Chase Bank (16.6%) and Citi (11.6%.)  However, they were 21st in assets.  While the do offer some online banking products, they don't have a physical banking presence like Chase, Citi, or Wells Fargo.  IMO, less assets to back up the consumer borrowing = greater sensitivity to default.  

On a side-note, if you are indeed routinely carrying a balance on your BCE and ED cards, I would ask why?  If you're doing it because you think it helps put you in AMEX's good graces for using your cards, you're unnecessarily wasting your money on interest charges.  Using your cards and paying-in-full accomplishes the same goal of showing responsible usage without having to incur fees.  If you're doing it because you need to carry the balances to make ends meet, you'd probably be better off forgeting about rewards cards from major lenders like AMEX and instead focusing on getting the lowest APR card (no AF, probably no rewards) you can get from a credit union.  The interest charges are more than wiping out any rewards that you are earning. 

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That's how I have always looked at it. I have always advised people who pay their cards of in full before interest accrues to get ones with the best rewards for their spend. I have always advised people who carry balances to not worry about rewards and instead focus on finding one with the lowest interest rate they can.

[uncredited]

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@Aim_High wrote:

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or bartering with chickens.

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Have you seen the price of chickens lately?  A flock is a much better acceptance than a Platinum.  Really saves on grocery category, too. Astronomical high AF though. 

[User1123932]

Here's something I tend to refer to when visiting a new place. https://americanexpress.com/maps

This may default to the country where you access it from. Other countries can be selected as well. Many countries are represented, but where acceptance may be 99% (for some definition of businesses) in the US and Canada, penetration may be significantly less in other countries.

Even off the beaten path well outside of big US cities and suburbs, I have trouble remembering the last time I saw a merchant not accepting AmEx if they take cards at all. I see plenty still not taking Discover, and still some that take cash only, or maybe something odd like Venmo only.

Maybe such irregularities are always expected, but I also get the sense that a lot of merchants who hesitated to get on board with any cards have recently gone all in with Square, Clover, Stripe, or similar new outfits providing payment shims that reduce friction for merchants to adopt all kinds of new payment options. Small businesses like food trucks and kiosks/bodegas come to mind, but also some mom & pop shops in less-populated areas.

I assume merchants using these solutions like Square couldn't arbitrarily opt out of a major network like AmEx or Discover. For some payment methods, the merchant may not even know which card/network you use until after the transaction is completed. If there are differences in interchange fees, those may still get passed through, but I'm guessing that the merchant would have to manage only the shim rather than deal separately with each different network. I could be wrong in these assumptions, but I'd be curious how this all really works.

[RehabbingANDBlabbing]

Jumping in here, but here goes my take:

I have run into some issues using AmEx tap to pay with a couple of my different cards at some place. I'll tap it and the machine will say it was declined, but then I insert the card and it works. It's just confusing to me because if they take AmEx, then why doesn't tapping work? I have had this happen at a mechanic shop, a gas station, and a movie theater.

[OmarGB9]

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@RehabbingANDBlabbing wrote:

Jumping in here, but here goes my take:

I have run into some issues using AmEx tap to pay with a couple of my different cards at some place. I'll tap it and the machine will say it was declined, but then I insert the card and it works. It's just confusing to me because if they take AmEx, then why doesn't tapping work? I have had this happen at a mechanic shop, a gas station, and a movie theater.

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Probably their tap to pay scanner is just broken. Has nothing to do with Amex acceptance at that point. 

[MrDisco99]

I don't remember the last time someone refused my Amex.  But then I don't travel as much as I used to.

[unsungivy]

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@rgd51 wrote:

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@OmarGB9 wrote:

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@rgd51 wrote:

Yeah so I feel I should definitely earn the SUB on the cash magnet first before I request a PC. I realize I can easily get a 1.5% card from a number of issuers but 3% on online retail purchases is very unusual!

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I wasn't talking about the CM SUB. I meant the SUB of the card you're PCing *to.*

For example, let's say you want to PC to a Blue Cash Preferred (BCP), which currently has a $250 bonus for spending $3k within the first 6 months of account opening. If you proceed with the PC, and your CM is turned into a BCP, even if you close it out say next year, then wait a year, then try to apply for a brand new BCP, you'll get a pop up basically telling you you'll be ineligible for the SUB since you had owned the card before.

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I do remember reading that somewhere before but I'd still want to earn the CM SUB before PCing since that guarantees I still earn that 1 SUB. does Amex require an account to be open a certain amount of time before allowing a PC?

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Yes. Needs to be open at least 1 year.

If you want a BCE, IMO open a new one in a few months through RESY (while they still have the great SUB with 10% Cashback on restaurants), and then if you don't want two diff Amex evaulate which card you got the better "deal" on after a year, consolidate the limits as much as possible, and close the one with worse rates (not common advice, but this is my current plan with my BCP and BCE, since amex is unwilling to lower APRs on older cards for me.)

[rgd51]

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@unsungivy wrote:

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@rgd51 wrote:

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@OmarGB9 wrote:

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@rgd51 wrote:

Yeah so I feel I should definitely earn the SUB on the cash magnet first before I request a PC. I realize I can easily get a 1.5% card from a number of issuers but 3% on online retail purchases is very unusual!

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I wasn't talking about the CM SUB. I meant the SUB of the card you're PCing *to.*

For example, let's say you want to PC to a Blue Cash Preferred (BCP), which currently has a $250 bonus for spending $3k within the first 6 months of account opening. If you proceed with the PC, and your CM is turned into a BCP, even if you close it out say next year, then wait a year, then try to apply for a brand new BCP, you'll get a pop up basically telling you you'll be ineligible for the SUB since you had owned the card before.

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I do remember reading that somewhere before but I'd still want to earn the CM SUB before PCing since that guarantees I still earn that 1 SUB. does Amex require an account to be open a certain amount of time before allowing a PC?

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Yes. Needs to be open at least 1 year.

If you want a BCE, IMO open a new one in a few months through RESY (while they still have the great SUB with 10% Cashback on restaurants), and then if you don't want two diff Amex evaulate which card you got the better "deal" on after a year, consolidate the limits as much as possible, and close the one with worse rates (not common advice, but this is my current plan with my BCP and BCE, since amex is unwilling to lower APRs on older cards for me.)

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Is it always that long of a wait? Asking since chase often says you have to have your card open at least a year but I was able to PC a card long before that. Asking since I plan to open a freedom unlimited which would pretty much make the cash magnet irrelevant but if I'm able to PC it to a BCE that would give me 3% categories that the freedom unlimited doesn't provide.

[FinStar]

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@rgd51 wrote:

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@unsungivy wrote:

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@rgd51 wrote:

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@OmarGB9 wrote:

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@rgd51 wrote:

Yeah so I feel I should definitely earn the SUB on the cash magnet first before I request a PC. I realize I can easily get a 1.5% card from a number of issuers but 3% on online retail purchases is very unusual!

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I wasn't talking about the CM SUB. I meant the SUB of the card you're PCing *to.*

For example, let's say you want to PC to a Blue Cash Preferred (BCP), which currently has a $250 bonus for spending $3k within the first 6 months of account opening. If you proceed with the PC, and your CM is turned into a BCP, even if you close it out say next year, then wait a year, then try to apply for a brand new BCP, you'll get a pop up basically telling you you'll be ineligible for the SUB since you had owned the card before.

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I do remember reading that somewhere before but I'd still want to earn the CM SUB before PCing since that guarantees I still earn that 1 SUB. does Amex require an account to be open a certain amount of time before allowing a PC?

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Yes. Needs to be open at least 1 year.

If you want a BCE, IMO open a new one in a few months through RESY (while they still have the great SUB with 10% Cashback on restaurants), and then if you don't want two diff Amex evaulate which card you got the better "deal" on after a year, consolidate the limits as much as possible, and close the one with worse rates (not common advice, but this is my current plan with my BCP and BCE, since amex is unwilling to lower APRs on older cards for me.)

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Is it always that long of a wait? Asking since chase often says you have to have your card open at least a year but I was able to PC a card long before that. Asking since I plan to open a freedom unlimited which would pretty much make the cash magnet irrelevant but if I'm able to PC it to a BCE that would give me 3% categories that the freedom unlimited doesn't provide.

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In a variety of cases, yes. And, more so if you're requesting an unsolicited PC from a non-AF CC to one that has an AF (as per the CARD Act). If going from say...CM to BCE, for example; perhaps no issue, but you'll have to check to see whether your account is eligible for the PC.

Moreover, Chase has different PC policies than AmEx.

[rgd51]

Even if I'm not eligible for the PC right away I feel it would be worth holding the cash magnet since I was given a $14,800 SL and it gets me in the door with Amex while I wait for my account to become eligible for a PC. I won't even check to see if it's eligible until after I earn the cash magnet SUB though.