How does amex justify there higher fees?

[Open123]

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@Anonymous wrote:
Because they're the best!

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In addition to SPG points being the most valuable for certain people, the large purchase protection offered by Amex, because of their closed loop and one sided Merchant agreement, is without peer.  

For this alone, even without rewards, I will only make large purchases (such as electronics) on my Amex cards.

[Open123]

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@Anonymous wrote:

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@dollar_bill wrote:

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@Anonymous wrote:

Does anyone know whatthe actual (or close) % of a persons tab goes to AMEX?  I know it is more than V/MC but is it that bad?

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4% is what I've read.

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Oh wow, now I understand why the owner of one of my favorite places asked me to use a V or MC.

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Right, which Merchants often do, but they cannot openly display the Amex accepted signage.

[SomeGuyOnTheWeb]

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@Open123 wrote:

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@Anonymous wrote:

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@dollar_bill wrote:

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@Anonymous wrote:

Does anyone know whatthe actual (or close) % of a persons tab goes to AMEX?  I know it is more than V/MC but is it that bad?

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4% is what I've read.

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Oh wow, now I understand why the owner of one of my favorite places asked me to use a V or MC.

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Right, which Merchants often do, but they cannot openly display the Amex accepted signage.

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The periodontist that I have been frequenting for the past 7 or so months recently stopped taking AMEX, even though the sign was still on the door (luckily I was able to make a $770 charge before they did), on the basis that AMEX recently raised their fee to 4%. But they were more than happy to take the Discover, which I figured had to be somewhere close to AMEX. But I'm guessing not.

[bigbang91]

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@Open123 wrote:

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@Anonymous wrote:
Because they're the best!

---

In addition to SPG points being the most valuable for certain people, the large purchase protection offered by Amex, because of their closed loop and one sided Merchant agreement, is without peer.  

For this alone, even without rewards, I will only make large purchases (such as electronics) on my Amex cards.

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Amex purchase protection is pale in comparison to Chase, for example the united xplorer 

[Open123]

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@SomeGuyOnTheWeb wrote:

The periodontist that I have been frequenting for the past 7 or so months recently stopped taking AMEX, even though the sign was still on the door (luckily I was able to make a $770 charge before they did), on the basis that AMEX recently raised their fee to 4%. But they were more than happy to take the Discover, which I figured had to be somewhere close to AMEX. But I'm guessing not.

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My Dentist (many service professionals) offers me a cash discount that exceeds CC rewards, which I gladly accept.  With medical services or goods where Merchant protection is unnecessary (such as restaurants), I don't mind using cash or a non-Amex card.

Expensive luxury goods where an element of Merchandise and Merchant risk is involved is where I will refuse to purchase unless Amex is accepted.

[Open123]

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@bigbang91 wrote:

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@Open123 wrote:

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@Anonymous wrote:
Because they're the best!

---

In addition to SPG points being the most valuable for certain people, the large purchase protection offered by Amex, because of their closed loop and one sided Merchant agreement, is without peer.  

For this alone, even without rewards, I will only make large purchases (such as electronics) on my Amex cards.

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Amex purchase protection is pale in comparison to Chase, for example the united xplorer 

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With Chase, I have to deal with the issuers, Visa, and or MC.  Amex decides solely, and their Merchant agreement, unlike Visa's, is completely one sided, where the Merchant doesn't even have a say on disputes.  This is why Amex disputes are handled infinitely more efficiently than other Banks, regardless of their marketing and claims.

[mikelo22]

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@Open123 wrote:

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@bigbang91 wrote:

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@Open123 wrote:

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@Anonymous wrote:
Because they're the best!

---

In addition to SPG points being the most valuable for certain people, the large purchase protection offered by Amex, because of their closed loop and one sided Merchant agreement, is without peer.  

For this alone, even without rewards, I will only make large purchases (such as electronics) on my Amex cards.

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Amex purchase protection is pale in comparison to Chase, for example the united xplorer 

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With Chase, I have to deal with the issuers, Visa, and or MC.  Amex decides solely, and their Merchant agreement, unlike Visa's, is completely one sided, where the Merchant doesn't even have a say on disputes.  This is why Amex disputes are handled infinitely more efficiently than other Banks, regardless of their marketing and claims.

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This. Anytime I make a big purchase on a piece of merchandise, I always use Amex for this very reason--even if it means losing out a bit on cash-back rewards. Other CCC's can sit there and claim they have just as good cardmember protection as well, but I don't buy it one bit. 

[bz386]

I am curious what you base your belief on. Have you previously filed disputes with both Amex and Visa/MC to see how they compare? Can you share the experience? Personally I believe that the hype around Amex is just that - hype, largely based on times when Amex was the only CCC to offer such protection.

[chwebb1]

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@bz386 wrote:
I am curious what you base your belief on. Have you previously filed disputes with both Amex and Visa/MC to see how they compare? Can you share the experience? Personally I believe that the hype around Amex is just that - hype, largely based on times when Amex was the only CCC to offer such protection.

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I think it depends on the bank. I've had to deal with Citi's and AMEX's extended warranty, and AMEX wins hands down. There were way too many hoops to jump through with Citi.

I've also dealt with AMEX, Discover's, Barclaycard's and Citi's dispute departments, and again, I'd say that AMEX, Discover's and Barclaycard's dispute departments are all roughly equally matched. I didn't have too many hoops to jump through with any of them (but they were for small amounts of money). I have had one unauthorized transaction for over $600 on my AMEX, and that was a breeze to deal with. So I do think that there are still benefits to using AMEX, but as long as you are with any prime bank, they should all be roughly as easy to deal with (because they know you have options).

[Open123]

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@bz386 wrote:
I am curious what you base your belief on. Have you previously filed disputes with both Amex and Visa/MC to see how they compare? Can you share the experience? Personally I believe that the hype around Amex is just that - hype, largely based on times when Amex was the only CCC to offer such protection.

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Based primarily on the following:

1.  Friends, family and colleagues who have made claims for various disputes. 

2.  Reading of others experiences on the net and various articles.

3.  The nature of the Amex Merchant agreement.

Fortunately, aside from rental car insurance (which was easier claiming with Amex than Visa, but not relevant here), I've never had first hand experience with fraudulent charges, disputes with Merchants, or any aspect of purchase protection.  I've had AUs and colleagues on our business cards make various claims which were credited with very little fanfare and paperwork, relative to what would have required with Visa, MC or Discover.

Over the years, just reading the various experiences from others on the internet would be similar to what I've experienced and see around me.  Of course, everyone on the net could be lying, but when you have a majority of user experiences over many years recount a similar experience, you lend more credibility to it, though it's only anecdotal.

Finally, from the last Merchant agreement I've read, it is extremely one-sided.  Since Amex has full control of the transaction from beginning to end, there is no intermediary in the cardmember transaction.  Unlike, say, Chase who must work with Visa/MC on disptues, Amex doesn't.  Amex's Merchant agreement states that during a dispute, they may, at their sole discretion, rule in favor of a cardmember without consultation or right of appeal from the Merchant.

As a consumer, should I ever need to make a dispute when it matters (not the small charges any issuer will reverse), I'd rather take my chances with Amex.