Why don't some places accept AMEX?

[Anonymous]

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@android01 wrote:

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@Platinum wrote:
I hope that some of those nutcases who are rejecting to accept AmEx have learned their lesson so far. When they tell me that they don't accept my card I simply tell them: "Well, then you don't get my business". If they are willing to lose customers over few cents then let it be. In the end they are losing much more then me or AmEx. I will go some place else where my AmEx is accepted. They should accept this transaction cost as the cost of doing business. I love seeing their faces when I give up on purchase just because the don't take my card.

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Then I would encourage you to take your business elsewhere.  If you've never run, owned or operated a business you wouldn't understand how much interchange fees matter.  Your "few cents" add up to a lot of money throughout a year.  It affects the bottom line which affects re-investment in the business, employee wages, and a host of other fixed and variable costs that consumers don't and never would consider.          

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+1

[Anonymous]

Also, if you assume that 50% of every sale is profit (which has got to be absurdly high compared to the realities of small business ownership), that .5% difference is going to be 1% of your profit.  Do people really think that 1% of potential customers are going to walk out solely because a place doesn't take AMEX?  I know a ton of people who never carry cash and won't be willing to use an out-of-network ATM in order to get a sandwich, so not accepting any cards at all can definitely hurt a business.  But it seems pretty obvious that accepting AMEX in addition to VISA and MasterCard costs a business money.  Many businesses probably find that spending that money is worthwhile, as accepting AMEX definitely adds a bit of class in the eyes of some (superficial) people, but if you're selling calzones (or nine dollar king cakes), that sacrifice will mean nothing to the vast majority of your customers. 

[haulingthescoreup]

Lots of doctor's offices take only MC/Visa. As hard as it is to find a doctor who makes sense and who will (after a while) trust you enough over the phone to call in a prescription without making you stagger in, I'll use a non-AmEx card there if it means not having to go doctor-shopping.

Not to mention that none of my cards, including American Express, give extra rewards for usage at a doctor's office. 1% is 1%.

[Anonymous]

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@haulingthescoreup wrote:

Not to mention that none of my cards, including American Express, give extra rewards for usage at a doctor's office. 1% is 1%.

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Every quarter the Citi Dividend Platinum Select card earns an additional 4% in certain categories. I don't know if this has ever previously happened before, but this quarter through March 31st customers can earn the bonus 4% for health care expenses. I realize this is tangentially related to the discussion, but I thought it'd be a cool thing to share:

* Health care - doctor's visits, eyeglasses medicine and more
* Fitness clubs - memberships and more
* Utilities - gas, electric, wireless services, cable and more

Health care is defined as merchants that provide examination, diagnosis and treatment of health-related conditions and includes services by licensed physicians or dentists, facilities that aid in diagnosis or treatment, and devices or corrective equipment for such treatment [...]"

[pipeguy]

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@android01 wrote:

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@Platinum wrote:
I hope that some of those nutcases who are rejecting to accept AmEx have learned their lesson so far. When they tell me that they don't accept my card I simply tell them: "Well, then you don't get my business". If they are willing to lose customers over few cents then let it be. In the end they are losing much more then me or AmEx. I will go some place else where my AmEx is accepted. They should accept this transaction cost as the cost of doing business. I love seeing their faces when I give up on purchase just because the don't take my card.

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Then I would encourage you to take your business elsewhere.  If you've never run, owned or operated a business you wouldn't understand how much interchange fees matter.  Your "few cents" add up to a lot of money throughout a year.  It affects the bottom line which affects re-investment in the business, employee wages, and a host of other fixed and variable costs that consumers don't and never would consider.          

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+10

I ran retail stores and owned my own business for over 40 years (between the two) and I can't remember ever having a customer "leave" based on payment options.

[pipeguy]

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@Anonymous wrote:

Plenty of people only carry one credit card.  Since VISA/MC are pretty much universally accepted anywhere that accepts cards, this type of person won't carry an AMEX, because it'd be stupid to have your one card be a card that isn't accepted everywhere.  Most everyone that has an AMEX has a backup, and they will just use the backup instead of not buying an item they want in order to make god-knows-what point about how they know better than the business owner about how to manage their finances.

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+10

Brilliant post

[Anonymous]

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@pipeguy wrote:

I ran retail stores and owned my own business for over 40 years (between the two) and I can't remember ever having a customer "leave" based on payment options.

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There is a type of customer whose numbers I don't know how a retailer could measure. On another forum, there are some customers to whom certain aspects of a credit card are so important that they vow that they do not and will not patronize a store that does not accept credit cards (i.e. a cash only store).

[pipeguy]

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@laboi_22 wrote:

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!

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Seriously? Seems petty and counter productive to me.

I wonder if AmEx has that much "love" for you (hint they'll dump you in a second if they doubt your worth).

[CreditScholar]

About 80% of the places around here don't take amex, and nobody takes Discover whatsoever.

Every time I think about applying for an amex, non-acceptance and forex fees make me have second thoughts. Only the plat doesn't have forex charges, and it doesn't really fit well with what I need right now.

[grigorexxxcore]

It's true, it does cost more for businesses to accept American Express. However, statistics show that American Express members spend more than individuals who don't. So in reality, it'd pay off for you to accept American Express because you will get more revenue.