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More Retailers Than Ever Are Accepting American Express

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https://www.forbes.com/sites/thepointsguy/2019/06/13/more-retailers-are-accepting-amex/amp/

 

It makes perfect sense that Amex would want you to be able to use your card at more stores, but Amex believes that it’s customers are actually more valuable for merchants as well. According to a Nilson report, Amex customers spend an average of $14,000 a year on their cards, 3.1x more than non-Amex customers. Similarly, the average transaction size of an Amex customer is 1.8x larger than a non-card member’s. So why is it that fewer merchants accept Amex cards? Historically, the reason has been because Amex charged higher interchange fees or “swipe fees” than Visa and Mastercard did.

 

According to Amex, this is no longer the case. The average cost for merchants to accept Visa and Mastercard has risen over the last 10 years, while the cost to accept Amex cards has decreased over the same period.

 

Why were the costs higher to begin with? Not as many consumers who have only one or few cards never get an Amex. Amex has not offered many cards through partner banks/issuers until recently.

 

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Posted (edited)

Yawn. More retailers than ever are accepting Visa and MasterCard too.

As far as Amex cardholders spending more, maybe so for their Centurion card holders, but prepaid Amex Bluebird cardholders probably spend less.

Anyway, I doubt an Amex card holder is going to buy more Big Macs to eat at McD's than a Visa card holder.

Edited by Burgerwars

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Yawn. More retailers than ever are accepting Visa and MasterCard too.
As far as Amex cardholders spending more, maybe so for their Centurion card holders, but prepaid Amex Bluebird cardholders probably spend less.
Anyway, I doubt an Amex card holder is going to buy more Big Macs to eat at McD's than a Visa card holder.


I had one Big Mac in 2019 so far and did not pay with Amex. :-)

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Costs were higher for American Express because American Express wanted them to be higher. Exclusivity has its' costs.

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Posted (edited)

For those on the forums not old enough to remember. Amex was once mainly about business travel and entertainment. Or meeting the needs of higher end net worth individuals. Their cards back then didn't get handed out to just anyone with a pulse compared to how things are today. I'm just old enough to remember when having a Amex card, kind a meant something.

 

 

Edited by TheVig

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My first husband (and I) had a Greenie in the 1980's. I was just as deplorable then as I am now, so...

 

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My flights go on the Plat for the 5x points.  I admittedly put the past two weeks at an MGM property on the MLife card for the sake of triple points which I needed to keep my MGM status for another year.  Even my overpriced bottles of soda went on the MLife card since, hey, 15 points is fifteen points LOL! 

 

WSOP entry fees went on a different card to hit certain spend bonuses...and I really did not want to risk tripping the AXP fraud algorithms even though they were only a couple of $1500 events.  What was interesting was that, even though the Goliath and WSOP were both Caesars properties on FasTrak, the properties did not communicate with each other on card registrations and they also appeared differently on the respective credit card sites (PHo Goliath showed as Bravo Poker while WSOP just showed as a purchase at The Rio). 

 

Aside from bonus-specific spending, however, almost everything for me goes on AXP of some flavor. 

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