Susie
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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 |
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Maple Leaf
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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! |
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Jace
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I think it is because they charge the business a higher percentage of the total purchase than other cards. |
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HairyBack
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The cost associated with accepting the card is much higher than others. Its a companys choice to accept that cost or not. Many chose not to. |
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CAE
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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. |
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Tom-SJ
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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%.) |
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mtn_bkr
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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 |
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the secret is in the pudding
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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! |
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justanotherengine
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Like Anna said, they charge the merchant, "You don't take credit cards, sorry, I'll have to buy this somewhere else, thanks, bye" |
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Jen
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American Express charges the merchants higher fees... |
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FRANKFUSS
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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. |
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thejaundiced_eye
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They charge the vendor too much. |
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Anna H
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They charge the vendors, so the vendors don't want to use them... |
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