Who benefits from an American Express card?

MDMD

lisyloo said:

It still is the case for small business like hairdressers or restaurants. However I have noticed at many markets the traders using a service that comes up as iz* and the traders have white keypads, and this service does take Amex (I guess this is akin to payapal).
So things have changed in some ways but not others.

“iz” is what used to be known as iZettle - owned by PayPal now

https://www.zettle.com/gb

Sandtree

sleepyjones said:

Am Ex used to have higher fees for business', We're talking years ago, so I dunno if it's changed but when I had a shop the AmEx charges were a fair bit more than Visa or Mastercard.  
My have just been my card terminal provider but AmEx definitely cost me more as a business accepting it (per transaction).

This doesn't really affect the customer though except that AmEx is, or was, less frequently accepted because (presumably) the fees were too high (again, we're talking years ago, possibly not the case anymore).

They used to be much higher, the gap is much smaller now. Visa and Mastercard have their own premium subbrands too (eg Mastercard World and Visa Infinite) which come with higher fees in certain circumstances.

If you look at solutions like Zettle (formally iZettle) that are aimed at SMEs they dont differentiate between cards other than debit -v- credit/charge

My experience is generally is that AmEx is widely accepted with a few notable exceptions. The most common place it wont be taken is traditional cornershops or cafes etc who use traditional terminals. Many market stalls etc do take it because they use Zettle type solutions. In some cases there are workarounds so B&Q dont take it directly but buy online and you can use AmEx via PayPal with B&Q.

A_Lert said:

Provided I can pay it off in full I think it's the best of the cards I've got, but the APR's higher than my other cards, so it's not one to use for major borrowing.

Depending on what card you have you need to be careful with "APR" as its defined as the total cost of borrowing £1,200 for 12 months and so fee incurring cards have to include the fee in that calculation. Look at their BA card and the higher tier has a much larger APR because of its higher fee but its not a higher interest rate.

[Deleted User]

I think it's a little unfair to compare with other providers - one it issues all own cards/network and two it's customer base tends to pay a fee and be more affluent so it can absorb the costs of providing overseas replacements etc easily.   

The main impediment is that retailers don't get Amex acceptance by default if they have a standard rented terminals - they generally need to make an extra application for a merchant account. This means you get small operations that take it by default by using iZettle type terminals that just charge a flat % for all cards and those that make that extra application to drive sales or have a higher margin businesses.  

It's UK consumers cards are partially covered by the 0.3% interchange cap as are all 'premium' consumer Visa/Mastercards. B&Q have taken Amex for several months -so no need to buy gift cards or use PayPal

Sandtree

Deleted User said:

I think it's a little unfair to compare with other providers - one it issues all own cards/network and two it's customer base tends to pay a fee and be more affluent so it can absorb the costs of providing overseas replacements etc easily.   

Its fair to compare as a consumer needs to consider the range of cards to decide which is best for them and whilst some AmEx have fees (just as some Visa/Mastercard do) not all do. 

As to the more affluent... I saw their business advertising, to get merchants to accept AmEx, and it was exactly their argument, that their customers spend more.

2ilent8cho

Sandtree said:

My experience is generally is that AmEx is widely accepted with a few notable exceptions. The most common place it wont be taken is traditional cornershops or cafes etc who use traditional terminals. Many market stalls etc do take it because they use Zettle type solutions. In some cases there are workarounds so B&Q dont take it directly but buy online and you can use AmEx via PayPal with B&Q.

Why would you need to buy online at B & Q when they have taken Amex in store now for months ?

[Deleted User]

Sandtree said:

Deleted User said:

I think it's a little unfair to compare with other providers - one it issues all own cards/network and two it's customer base tends to pay a fee and be more affluent so it can absorb the costs of providing overseas replacements etc easily.   

Its fair to compare as a consumer needs to consider the range of cards to decide which is best for them and whilst some AmEx have fees (just as some Visa/Mastercard do) not all do. 

As to the more affluent... I saw their business advertising, to get merchants to accept AmEx, and it was exactly their argument, that their customers spend more.

It's reference to emergency card replacement - most Amex cards attract a charge and the holders are more affluent so Amex are more likely not to make an overall loss with an occasional replacement. Whilst most Visa/MasterCard cards don't charge a fee and accept less affluent customers too - therefore providing free overseas replacements are likely loss making in most instances.

You were comparing apples with oranges.

Sandtree

Deleted User said:

Sandtree said:

Deleted User said:

I think it's a little unfair to compare with other providers - one it issues all own cards/network and two it's customer base tends to pay a fee and be more affluent so it can absorb the costs of providing overseas replacements etc easily.   

Its fair to compare as a consumer needs to consider the range of cards to decide which is best for them and whilst some AmEx have fees (just as some Visa/Mastercard do) not all do. 

As to the more affluent... I saw their business advertising, to get merchants to accept AmEx, and it was exactly their argument, that their customers spend more.

It's reference to emergency card replacement - most Amex cards attract a charge and the holders are more affluent so Amex are more likely not to make an overall loss with an occasional replacement. Whilst most Visa/MasterCard cards don't charge a fee and accept less affluent customers too - therefore providing free overseas replacements are likely loss making in most instances.

You were comparing apples with oranges.

The problem is that many others, including fee incurring current accounts with cards equally aimed at mass-affluent, dont have any option for sending a card overseas unless you officially record your hotel (or equiv) as your formal address. So its not like Starling who charge £60 but a straight "computer says no" response.

There may be reasons why AmEx can offer more services without charge, there are less reasons why fee paying current accounts say your debit card cannot be replaced until you are back in the UK in a months time even for an additional fee.

It remains apples and apples even if some of the differences are explainable.  

Marchitiello

One of the reasons that Amex can “send” you a card whilst you are abroad is that they can actually issue the card in the country where you are located (or at least in a nearby country), hence they may give you a plastic Platinum Chargecard instead of the metal one issued here and US. Some banks with an international presence and premium cards (eg. HSBC Premier Word Elite and Santander Select World Elite) May equally be able to do that. It may be a MasterCard Service as well that Visa does not offer.  I think in countries where your bank does not have a presence, you may actually get a generic black, no brand, World Elite MasterCard Replacement)