Why Do Some Businesses, not accept certain Credit cards like Amex???

Question

I was trying to buy Ice cream for my kids and I wanted to use my Amex Clear card I just got, but the Lady at the place said they didn't accept Amex, so I took out my MC, and paid it like that, does anyone know why sometimes they don't accept them?? thanks!!!

Answer 1

Because the transfer fees are approximately four times higher then MasterCard and Visa.

Answer 2

Credit card companies - not the banks that issue them, but Mastercard, Visa, Amex, etc. - charge business a certain percentage of each transaction any time a card is used. Most of the time the business eat the expense because they'd rather have a sale than not. That's how the credit card companies (NOT the banks) make money. Amex happens to charge a high percentage compared to the other cards, and so many businesses do not accept it because most people have cards other than Amex that charge a lower fee to them.

Answer 3

All credit card issuers charge the merchant for each charge accepted. For instance, if you charge a $50 meal at a local restaurant, the restaurant has to pay a 3% (varies from card to card) of that $50 charge to the card issuer. With small profit margins in many businesses, it's just not worth it to accept cards.

PS. The credit card machines are also an added expense to the business.

Answer 4

I use my AMEX Blue for all of my purchases, but I always keep a MC with me for instances like this. Most smaller businesses and mom and pop stores do not except AMEX.

Answer 5

Business owners have to pay to accept credit cards. They have to buy or rent a credit card machine, and they pay a monthly fee to credit card companies. They also have to pay a monthly fee to a company that processes their receipts for them. American Express just happens to charge a considerably higher fee than MC and/or Visa and/or Discover. Some businesses just decline Amer. Ex. because of this.

Answer 6

They have to pay fees to the banks that issue the credit cards. This is also why credit cards will give you reward points for making purchases. Even if you pay your full credit card balance each month and pay no interest, the credit card companies are still making some money off of your purchases.

Answer 7

i desire to recommend applying your man or woman income emergencies. i think that it does 2 substantial issues: first, it makes you look into what extremely is an emergency extra heavily, and it won't get you in to debt. we could say you get a mastercard for $5,000. Then there is an emergency that makes you spend $2,000. you will incur a brilliant form of activity costs paying that decrease back (assuming you won't be able to pay the stability off in finished; and in case you will pay that quantity decrease back in finished then you definately surely do not want a mastercard for emergencies) . Now in case you had $5,000 in a money marketplace Account (with examine writing features and a money card; Capital One has one in all those money marketplace Account) then you definately ought to purely pay for the $2,000 emergency and not would desire to situation approximately activity costs or minimum money. you will in basic terms construct your emergency fund decrease back as much as $5,000 at your man or woman %.. And, collectively as the money is sitting in a money marketplace Account, it will be gaining activity for you. it extremely is how I even have my emergency fund, as i does not desire to borrow income an emergency. construct up an emergency fund of liquid money which you will get to promptly, one which equals the quantity of money you will choose on a mastercard.

Answer 8

Because it cost businesses money to be able to accept Amex.
My husband restaurant used to accept it but then had to quit because it was costing to much money out of his pocket.