Amex Not Accepted

[Astroboi82]

Now I know there has been discussions about this before,

But I wonder is there anyone here that wont go to a place if they know that place dont accept amex or have a high surcharge ?

 

[airbridge]

If there is an alternative at same price, absolutely. I don't understand the small mindedness of businesses who do this. Charging a fee for the way in which a customer pays is offensive. They obsess about their cost of accepting Amex but how much do they lose when I walk out of their store? I recall wanting to buy a jacket at a common clothing store and declined when they said they didn't accept Amex. I wondered how many jackets they would have to sell over and above what they normally do to make up for the loss of one sale. If they work on 50% profit and their Amex fee is 3% then they would have to sell an additional 16 jackets. If they had to do that for every loss then that is a lot of money to lose. Then take into consideration that I won't ever go back with repeated business.

Madness.

 

[Moopere]

What airbridge said.

Seriously, it beggars belief that some businesses would rather make no sale than pay less than 1% over and above what they'd pay for a customer using MC/VISA. The only logical reason I can think of to do this is if your profit margins live inside that 1% ... and if this is the case then the business simply won't survive anyway.

I routinely only shop at places I know accept Amex without surcharge. Because I keep forgetting to ask before sitting down I'll occasionally get stung at restaurants and will have to pay with MC, but that will be the last time I'll go to such a place, so they don't get my repeat business.

This state of affairs represents a _huge_ opportunity for some small businesses in my view. Think of it this way, often business will have to spend significant dollars on advertising of one form or another and one is always looking for a way to differentiate with other competing businesses of similar type ... for about 1% of revenue accepted on the card you can accept Amex and immediately increase you potential pool of customers ... who, because of shrinking Amex acceptance, are more likely to become repeat customers. When I was running my own shop gaining new customers cost me a helluva lot more than 1% of their revenue let me tell you.

[edit: I still push through >80% of my monthly spend to business that accepts Amex ... its slowly shrinking though since Amex brought in changes Oct last year. Before then, it easily topped 90-95%]

 

[The Rok]

None if my local IGA's accept Amex except for the large Super IGA at the shopping centre. As a result I refuse to shop at any IGA! Unless I'm badly stuck and need lime for my Corona.

 

[ftm]

What airbridge said.

Seriously, it beggars belief that some businesses would rather make no sale than pay less than 1% over and above what they'd pay for a customer using MC/VISA.

I would love for the merchant fee Amex charges us to be within 1% of Visa and MasterCard. Instead it is more than three and a half times the rate.

I love Amex as a card holder but dislike them as a merchant. They won't negotiate on the rate (called them only last week) saying that the rate is a flat rate by industry type. They are also a lot harder to reconcile, particularly when you have refunds, so take more admin time to manage.

If Amex simplified their merchant model, perhaps merchants would be less likely to surcharge.

 

[bluenics]

Yes, I'll always go to an amex accepting shop over a non accepting store. Also I look out for the signage when looking for somewhere to eat.

 

[Newk]

I too try to use Amex accepting institutions

 

[flyer999]

If there is a surcharge for Amex I offer cash less 10%, and walk if no deal is offered.
In a restaurant I regard it as the tip. I realize it's not fair to staff but I figure the message will get through eventually.

 

[aikman]

For convenience I sometimes use my Mastercard over AMEX for small purchases when paypass is available. I don’t understand why AMEX won’t go contactless or use a PIN system. Having to sign all the time gets annoying.

 

[DeKa]

For convenience I sometimes use my Mastercard over AMEX for small purchases when paypass is available. I don’t understand why AMEX won’t go contactless or use a PIN system. Having to sign all the time gets annoying.

New AMEX are contactless. My Corp AMEX and my DJs AMEX both have chip, pin and contactless. Ask for your card to be reissued?

 

[Astroboi82]

Yea I encountered 4 places today both while doing shopping, getting coffee and then later while out for lunch that didn't accept Amex, I find it annoying,

Also my Platinum card has tap n go !

 

[DeKa]

Our friend Newk has the answer to your challenges! Best way to use that product too.

 

[Cynicor]

OT, but on the contactless front, my Edge still does not get accepted by some contactles machines. Asks for the card to be inserted for the chip to be read then says "lease swipe card"...

End result is wasting more time. Is there a reason for this?

 

[flyer999]

Just got a new Amex with chip and pin. It means getting a new card number (if your card is not due for automatic renewal) which might be a pain for some.

 

[Simo]

The contactless payment method is only for purchases under a certain dollar value I am not sure what it is though.

It might vary between retailers as well.

Yesterday I used my AMEX at a first choice liquor shop and it was $35 or under was no signing and no pin number.

 

[Mal]

OT, but on the contactless front, my Edge still does not get accepted by some contactles machines. Asks for the card to be inserted for the chip to be read then says "lease swipe card"...

End result is wasting more time. Is there a reason for this?

The terminals need a software (firmware) upgrade to recognise the card type. The most annoying one is the three try method (they swipe, get asked for chip, the chip fails so they get asked to swipe again).

 

[aikman]

I rang Amex today and ordered a new chip & pin card. Thanks for the suggestion.

 

[NM]

I no longer have any problems with Amex surcharges.

I ONLY use my Amex Plat Edge credit card for spending at major supermarkets, which all accept it without surcharge. EVERYTHING else goes on a non-Amex card. Works for my rewards goals and keeps it nice and simple for me.

 

[jingles]

I would love for the merchant fee Amex charges us to be within 1% of Visa and MasterCard. Instead it is more than three and a half times the rate.

I love Amex as a card holder but dislike them as a merchant. They won't negotiate on the rate (called them only last week) saying that the rate is a flat rate by industry type. They are also a lot harder to reconcile, particularly when you have refunds, so take more admin time to manage.

If Amex simplified their merchant model, perhaps merchants would be less likely to surcharge.

I have a friend in with a small business and I know they only pay around (or a little over) 1% on Amex transactions. (They have a retail store)

They said one day they called up their bank/amex (I dont remember who) and said unless they can have a rate closer to Visa they would stop accepting Amex.

I'm not sure how many businesses realise that accepting a Corporate/Platinum credit card costs more money, some people may even be paying more to accept these cards than an amex

From memory a regular Visa/MC is around 0.6% and Platinum/Corporate cards were around 0.9%

 

[tgh]

I have done one "better" than NM...
I dumped amex altogether.. wrote them a nice letter returning our new plat edge cards explaining that after 30 continuous years I could find no ongoing reason to carry the card.
I guess my argument was compelling .. no phone call .. no letter saying thanks for the memories.. nuthin' .. they just did what I asked.

postscript...
I "prophesise" that amex is done..at least in 'Oz.
You can't stay profitable without enough volume.
A rump of high spending corporate & hnw's won't cut it for viability.