Who Does/Does Not Accept Amex?

Niemand

MrsMcnababble wrote:

Mikhail: when Niemand says

"Amex charge the retailer extortionate merchant fees. Much higher than Visa or Mastercard."

Niemand did not say that. The quote you cite was made by Degenerate, not me.

wodada

I’d have to talk with you here. That's not really something I usually do!

joro78

This is really great and BIG list LOL. Thx

Degenerate

Mikhail wrote: »

So 'extortionate merchant fees' in your understanding is 1 or 2% on top of the basic rate?! Does not sound a lot to me sorry.

You're not the one who would be paying it. 1 or 2% can make a lot of difference to the merchant's profitability if they run with slim margins.

But let's compare with the others: PayPal charges 3.4% + £0.20 GBP; Everyone's favourite justgiving.com 5% + monthly subscription fee of £15 + VAT

Erm, you're not comparing like for like. These are both specialized services rather than standard merchant accounts. Paypal charge standard rates for all cards regardless of type, so they're either absorbing the difference between Amex and Visa/MC fees or they've been able to negotiate a special deal with Amex because of their size. Justgiving charge only 1.3% for credit card processing (the 5% is for other things) and don't accept Amex - I wonder why?

Normal merchant accounts with proper banks tend to pass on a charge related to the actual processing cost specific to the card used. So merchants do feel the difference between Visa/MC and Amex. This is why so many decline to accept it.

Now think about all the benefits that come with Amex:
Cash back or rewards points;
Travel Accident Benefit;
Emergency Card Replacement anywhere in the world within 48 hours;
Travel Insurance (not on all cards);
Purchase Protection Benefit;
Refund Protection Benefit;
Online Fraud Guarantee;
24/7 Customer service;
No annual fee (not on all cards)

Most of those benefits are not available for Visa and MC customers.

Many of these benefit ARE available with Visa and MC cards from various providers. But anyway, the merchant who pays the fee sees none of these benefits, so why should they fund them? Of course, they could pass on the fee to the customer, but if they do that then most people would figure that the cost outweighs the benefits to them and stop using Amex at that retailer anyway.

Mikhail

Degenerate wrote: »

You're not the one who would be paying it. 1 or 2% can make a lot of difference to the merchant's profitability if they run with slim margins.

“slim margins” lol if they run the slim margins they must sell with the supermarkets speed in order to survive and supermarkets accept Amex.

Erm, you're not comparing like for like. These are both specialized services rather than standard merchant accounts. Paypal charge standard rates for all cards regardless of type, so they're either absorbing the difference between Amex and Visa/MC fees or they've been able to negotiate a special deal with Amex because of their size. Justgiving charge only 1.3% for credit card processing (the 5% is for other things) and don't accept Amex - I wonder why?

PayPal is also providing a merchant service; I don’t know what you mean by the “standard merchant accounts” and Justgiving is accepting Amex but via PayPal!

By the way there is a difference in accepting debit and credit cards, should the merchants pass that difference on us too, as you said if 1-2% makes a difference?

Normal merchant accounts with proper banks tend to pass on a charge related to the actual processing cost specific to the card used. So merchants do feel the difference between Visa/MC and Amex. This is why so many decline to accept it.

So you're saying if I want to buy something and walk-in with Amex it will be bad for the business?

Many of these benefit ARE available with Visa and MC cards from various providers. But anyway, the merchant who pays the fee sees none of these benefits, so why should they fund them? Of course, they could pass on the fee to the customer, but if they do that then most people would figure that the cost outweighs the benefits to them and stop using Amex at that retailer anyway.

Please list the banks which provide the similar services to costumers in one card.

I don’t think the merchants who pay the fee see none of these benefits; first of all I don’t think they need most of the benefits I’ve listed as they have the other benefits, e.g., 1. reduced risk (ensure payment is received) VISA & MC is not only online system, transactions made offline can be debited months later; 2. marketing exposure. Amex do a lot of promotions and people use them, there are a lot of different Amex websites promoting local businesses, e.g., amextoptreats.co.uk, offers.amexnetwork.com, etc. 3. Increased efficiency. Reduce the need to conduct up-front credit checks, issue multiple invoices, or follow up on unpaid bills. American Express helps to cut down on paperwork and administrative time. All other benefits are here: http://j.mp/hnrewM

I’m sorry I can’t explain why the merchants should fund Amex benefits. According to your statement they then won’t need an advertising, website, price fight, promotions; well practically they can do whatever they want lol the only problem they will go bust.

Venusflytrap

Is this rewards programme free to all AMEX card holders?

I have just received my AMEX Nectar Card with no mention of it and wondered if I could register online at no cost.

Also, does anyone know how AMEX works out currency conversion when spending abroad? Is it from forex - GBP or forex - USD - GBP?

Thanks

Mikhail

Venusflytrap wrote: »

Is this rewards programme free to all AMEX card holders?

I have just received my AMEX Nectar Card with no mention of it and wondered if I could register online at no cost.

Also, does anyone know how AMEX works out currency conversion when spending abroad? Is it from forex - GBP or forex - USD - GBP?

Thanks

Read T&C it is all there!

soldierfield

Hi, I'm a student at the University of Seville who is doing a research on the use of credit cards. If someone wants to answer it can do in a short time on this link.

2011michelle

I don't think as many retailers accept them. That is the case I find anyway.

flyingflea

jennyj wrote: »

Even though Amex is on the 'does not accept list' Boots do take Amex.

Since having an Amex card each we have found more and more places are willing to take this. We have currently paid for our holiday with the card and even though there was a surcharge of 2% we have still gained with the 5% cash back which is great.

Jpj

Agreed, I buy my lunch daily from Boots using my Amex card.