Re: Why do Amex-processed, non Amex-issued cards exist?
enharu wrote: From my understanding cards using American Express and discover payment networks have higher swipe fees
This, the swipe fee is shared between lender and transactional network, and for all we know the split could be identical or even better in Amex's case for the institution.
Also, like it or not, Amex does have it's fungable prestiege, and even on this forum recently we have several members who in general are in the top 5% of the credit-knowledgeable folk in the consumer space, and they were getting the cards from various other institutions that authorize on the Amex transactional network, mixed up with the Amex co-brands.
It seems silly to some of us, but the little logo on the corner of the restaurant bill fold plays just as well with any Amex transactional card instead of just the mainline Amex charge or revolvers. I'm fairly confident Amex's markleting has slipped in here as well, and if you can keep customers Amex would like to have in house in your lending institution, that's a small price to pay for even a possibly slighly decreased cut of swipe fee even... something of something being better than nothing of nothing.