How come most places do not accept American Express credit cards?

Question

I have realized that some restaurants and stores do not accept American Express/Discover credit cards. Why is that? Only places such as Costco and Sam's Club offer American Express (along with the Costco membership) and they do not accept other credit cards. What B.S this is!

Answer 1

American Express charges a high fee to use their cards. For example, if Visa charges 2% of the transaction, then a $100 charge 'costs' the store/restaurant $2 in fees. Amex has a much higher rate- so stores don't want to pay a bigger chunk from their sales to them and don't offer it. There's a transaction charge plus the % and that is why you see places that say "Minimum Credit transaction $10" or something. Because if the transaction charge is 1.35 (example) and you charge $2.. well they only made .75

Answer 2

Accepting credit cards costs money and American Express credit cards charge the most, so many business don't take them and this is hurting American Express a great deal, no doubt.

RE:
How come most places do not accept American Express credit cards?
I have realized that some restaurants and stores do not accept American Express/Discover credit cards. Why is that? Only places such as Costco and Sam's Club offer American Express (along with the C...

Answer 3

Accepting credit cards costs money and American Express credit cards charge the most, so many business don't take them and this is hurting American Express a great deal, no doubt.

Answer 4

All credit cards charge the merchant to accept credit cards, American Express charges 1 flat rate instead of multiple tiered rates that the other credit card companies charge. So say Amex charges 2.5% to the merchant, that may look more than the 1.7% that Visa charges, but that 1.7% is only for certain cards. Visa then charges things on top of that percentage, like if the card is a rewards card they will charge more. Amex is a little more expensive but their card members tend to spend more and go bad less. That is just the stats of the industry

Answer 5

Well Erin, first off just the name AMEX will swell up your credit score's ego and he will just do jumping jacks for your credit history. Think about this, if you have a charge card with AMEX, the expensive annual fees, implies to the company, that "Hey, Erin here has a card with us and if she can afford a $97 annual fee, she can certainly charge $300 one month and pay it off in full later!" Most people who hold a line of a credit with AMEX can afford to charge a heft amount and pay it off and still afford an annual fee. Additionally, the annual fee is what brings people coming back for the reward points, whether your a private club member to a certain company, air line, or even rewards on sky miles, gas and groceries. The points add up and when people actually take the time to count out, they can earn themselves a nice little spa getaway. So despite what people say, the annual fee is what opens doors. Now, on the other hand, most people see folks who have an AMEX card as suckers who just care about the prestige of the name and want to flaunt to their poor friends who try keep up that they can afford all the fees and blah blah blah blah...Back in the day, it was extremely hard to obtain the card just for the mere fact that it was an American Express card, you needed basically a perfect credit score. Nowadays, anywhere from college students to high end exectutives can get an AMEX. But, know your boundaries. Most college students stick with Blue Cash Everyday credit card, or the Gold Card, whereas as high power CEOS can afford cards with almost unlimited lines of credit with hefty rewrads. So just becareful. When choosing I would reccommend getting a credit card from them, NOT A CHARGE CARD. Your young, with a credit card, yes, there's interest rates, but that's with every card. But they don't have an annual fee. Just use the card and pay off your balance in full, always. ALWAYS avoid interest if you can. However, if you can you can spread out payments, that the beauty of credit cards. GOODLUCK!!

Answer 6

American Express charges the merchant a transaction fee for every charge and an rental charge for card sliders. Some merchants have a minimum charge because they want the purchase to be worth the fee. American express does not charge interest for bills paid in full at month end. Instead of billing card holder they hit up the merchant.

Answer 7

Each credit card company charges its merchants a fee to process every transaction. In other words, the merchant receives a discounted amount, not the full amount of the actual purchase.

AMEX charges among the highest discount rates in the industry. Not sure of the exact amount, but I believe it's at least 4% (Visa and M/C may be about 3%.)

Answer 8

Amex charge the companies a percentage to be able to accept their credit card and they are notoriously high. Other companies like Visa and Mastercard only charge around 2% but Amex charges much higher!

Answer 9

Every time you pay with a credit cards, the merchant gives up a % to the credit card company. In the case of Amex, they are the most expensive of them all. To add to the disadvantage of accepting Amex payments, the merchants have to wait allot longer to get their money, specially if they are located outside of the US.

Be nice, pay with VISA, MASTERCARD or a bank card!

Answer 10

Amex charges businesses a ridiculous amount of money to accept their card. Yes, they charge to be able to accept them as a method of payment.