I get the same thing out of my Capital One Business cards, with free miles to boot...

-Wayne

I use AmEx every where that I can. I left Walgreens when they stopped taking AmEx for a couple of months and went to CVS -- Walgreens caved in and started taking AmEx again, but i found that it was just as easy to go to CVS. And, several times I have filled up an online shopping cart and gone into checkout to find out the vendor does not take AmEx. At that point, I save the shopping cart (if I can) and look for the items at another vendor who takes AmEx.

OTOH, there are places that have no good substitute that I'll still shop at even though they don't take AmEx.

This isn't to say I'd go elsewhere if PP stopped taking AmEx. I think that PP offers more than just a store, and I'd have to think twice before buying something elsewhere.

Wayne,

Maybe add a small surcharge to the invoice, to customers still willing to use Amex. Give the customer the choice. This should stop any price rise across the board?

Wayne:
AMEX snuck the rate up to 27.99% on my Optima card, which I have had for years. I called them and told them in NY they would be subject to stste racketeering charges. I said "Cancel" They said,"how about if we drop your rate to 10%. I said OK, and why don't you make it retroactive?", so they took out some back interest.

They are thieves; cardholders pay in the long run, as you suggest. A product of our backwards economic and banking policies, AMEX is just the worst of the worst, from my consumer point of view. Almost all small business owners I know hate AMEX with a passion.

ONLY OWN AMEX
 

Just easy to charge and pay off each month.

AMEX is a must have for me, it's also my payment of choice for "business" related repairs on the P car.

But Wayne it isn't the same. I have a platinum corporate Amex that I use for travel for work. I get late checkout at many hotels (4pm which my wife loves), free access to all the airline travel clubs (delta crown room etc.), many surprise upgrades to first class and better cars and better rooms, etc. They have an awesome travel agency and concierge-type service. If I have a business dinner in an unfamiliar town, I just call and they set it up. There are incredible package deals they put together for weekend getaways with the family at very good rates. It's far more than just free miles.

And it isn't free miles. It's amex "points" that you can use on delta, marriott, banana republic, etc. There are hundreds of outlets, not just one airline.

I got a personal card and linked the expenditures together so they aggregate amex points.

Amex is also a lot more private about selling your personal info and they don't do cheesy things like send you credit card "checks" to encourage you to charge more (and encourage other's to steal your identity)

I got sick of all the junk I got with my visa and just cancelled it. I have amex and a debit card and I wouldn't use the debit card online. So, I don't buy stuff from online vendors that don't take amex.

You asked why we like amex and the answer is outstanding customer service and perks that far exceed any other card. Admittedly they are a lot better at "branding" their services, and whether that brand is real or just good marketing is irrelevant if people believe the branding BS.

Is a lexus better than a toyota? Not really, but the dealership experience is completely different - starbucks coffee, free carwashes, loaner cars...

Your survey seems to be answering your question. You may be putting as many as 25% of your customers at risk if you drop it.

Wayne:
To take a contrarian point of view here...
If you become forced to keep AMEX, but find it necessary to raise prices across the board, I would find it necessary to protest. Why should I pay for the preferences of a minority of your customers?

But, what if you sack AMEX, lose a percentage of your customers, and then the remaining customers have to pay a higher price anyway. Once again, I would protest.

You're in a tough spot. I'd maintain the status quo.
Pat

I accept Amex using Paypal. I am not on the best fee schedule with Paypal, but I assume Paypal is charging me less than Amex would directly.

Interesting - never quite thought about that avenue there. I didn't even think that PayPal took Amex...

-Wayne

Never had it...never will. You're right, you can get a better deal from the Mafia.

>I didn't even think that PayPal took Amex...

They do! There's your solution right there. I've always wondered if Paypal took a hit whenever I use my AmEx through them. That would be interesting if Paypal charged Wayne less than AmEx did directly. :)

"But Wayne it isn't the same. I have a platinum corporate Amex that I use for travel for work. I get late checkout at many hotels (4pm which my wife loves), free access to all the airline travel clubs (delta crown room etc.), many surprise upgrades to first class and better cars and better rooms, etc. They have an awesome travel agency and concierge-type service. If I have a business dinner in an unfamiliar town, I just call and they set it up. There are incredible package deals they put together for weekend getaways with the family at very good rates. It's far more than just free miles.

And it isn't free miles. It's amex "points" that you can use on delta, marriott, banana republic, etc. There are hundreds of outlets, not just one airline.

I got a personal card and linked the expenditures together so they aggregate amex points.

Amex is also a lot more private about selling your personal info and they don't do cheesy things like send you credit card "checks" to encourage you to charge more (and encourage other's to steal your identity)

I got sick of all the junk I got with my visa and just cancelled it. I have amex and a debit card and I wouldn't use the debit card online. So, I don't buy stuff from online vendors that don't take amex.

You asked why we like amex and the answer is outstanding customer service and perks that far exceed any other card. Admittedly they are a lot better at "branding" their services, and whether that brand is real or just good marketing is irrelevant if people believe the branding BS."

Wayne
I absolutely would stop using PP if you dropped it as I only use Amex. I can't imagine that the rate Amex charges you (probably in the 3-4% range) is more than 1-2% more than Visa. It seems to me you risk losing 20% of your clients and over a 1-2% cost increase from Amex.
I love my Platinum Card. My companies both here and in Canada accept Amex and it is my Company credit card for employees. There are too many reason to list here why we use them. To me it has always made good business not to limit my costumers choice of payment espcially over a 2% surcharge.
Steve

COSTCO accept AMEX for purchases and not Visa or MC.

i do not have an amex & have been told by friends in business that its a pain to get the money from amex
i always thought when i grew up i'd get an amex, but i can't justify the annual fee

They certainly do. More than 1% less...

-Wayne

ya mean "You may be putting as many as 25% of your AMEX customers at risk." (?)

seems that it's mostly just the AMEX customers chiming in on this one.



As I see it; Cash is king, I hate annual fees, and I don't shop at Costco.

btw, how is AMEX =affluent, when/and Costco = AMEX ? . . .talk about bottom-barrel price shoppers.

. . .which is really what I'm reading here. That is, those cute little AMEX beni's are TOO valuble to give-up.

Really? . .are they more valuble than say, this "Pelican BBS?"

My AMEX is a business card. I get fired if I use it to buy car parts. Please stop taking it and remove the temptation! :-)

To hell with Amex . I own and operate my own business and DO NOT accept payment through those crooks . If every merchant gets on the wagon and refuses there service then less people will carry that demon card .
Those bastards actually charge merchants $4.00 for the monthly statement . And in that statement you get to see how much you`ve been robbed .

Wayne your position is a little different than mine . If I was in your shoes I would make a window open while an amex charge is being processed . The window would read

" please note that the use of an amex card directly impacts our allready small profit margn. If you have the option please use a M/C , Visa, or Discover . We appreaciate your continued patronage and will strive to continue providing our low prices ".

Or just charge them the 1% or better that they are shorting you . Call it an amex surcharge . Many merchants are now surcharging paypal fee`s yoo .
But I would go for the option above first.
In short you should continue to accept that trash card from those that dont care about your business .

Kurt Williams

Wayne;

I find a lot of places, especially here in Canada, don't take Amex for the same reasons you don't like them. Fee gouging.

I do use Amex however, and like the service they provide. I also carry MC and Visa, as well as a link to my line of credit from my debit card, so my options are always open.

I can't say that I've ever refused to buy something because someone wouldn't take amex, but I do like to use it and appreciate businesses that accept it. I seem to fit into a category between the top two options in your poll.

Now that's me, but I am sure there are some people who would be put off by refusal to accept it, especially if it's been in place for a while and they've used it with you previously.

From a business standpoint, I'd say keep it. From the looks of the poll, it accounts for at least 25% of business. Is it worth dropping them at the risk of losing 25% of your sales as a result? Although I don't think you'd see that much of a hit, the polls show it as such. Like I said, another poll option such as "I prefer Amex, but will use another card if I have to" might be applicable.

I also find that AMEX's security measures are excellent. Their pattern tracking and flags are decent and customer service/security is good.

Jim

I hate Amex - with a passion. All you who tout Amex - just better pray that you don't ever have an issue with them - your fault or not. It doesn't matter with them.

I had a gold Amex card at 24 -back when you earned it - then because of a clerical error on their part - did not process an address change correctly. I called. They said bill was on the way. I called again, same answer. I called again and said my account had been turned over to collections and reported to a credit bureau. They had - and said they were obligated to report for "people like me" even though months later they agreed (verbally only) that it looked like they had entered the information incorrectly.

I'll never use their card...

To answer your question Wayne - I think you'll find that 90% of the folks will have a MC or Visa - for the other 10% - steer them toward paypal - that will teach them!

I feel like there is a whole credit card world out there I never knew existed. I have had a MC for 18 years, get cash back and never had a problem. Now all of a sudden I feel like I'm slumming it with this card. What I don't get is what is the advantage for a customer buying from PP with an AMEX vs. MC card?

There also seems to be a lot of places that don't take AMEX. That would tell me that most people would have a second card and could use that if you didn't take AMEX. I would also guess that the number of people who only have an AMEX card is very small.

I'd still buy
 

from Pelican whether you accept Amex or not. I use both in my purchases from you. I've had my Amex card since 1977 and receive a couple offers a month to sign up for their extended payment plan. I have refused and will continue to do so.

I keep my Amex card for two reasons. It limits my expenditures because I know the balance is due in its entirety the next month and I get interest free use of the money for 30 days as long as I pay in full. Locally, even when I have the cash, I'll use the AMEX card just to stretch the payment out for 30 days. With Visa/MC, it's easier to blow a budget, and you're more likely to pay less on the balance since you know you can.

Bottom line is that I tend to think of the Amex card more as a substiute for cash than as a credit card.

I'm curious is AMEX willing to negotiate their fees at all?

On reading the posts Wayne, I'd be all for a Paypal option. Not sure if you have one implemented now, but it would have been handy the last couple times I ordered. (plus the wife doesn't see the charges.)

Jim

Wayne
The way I see it strictly from a business stand point is, if you don't have a Amex rep you are doing less than one million a year in charges.

Say your doing $750,000.00 a year in Amex only and they are charging you 1% more than Visa it's costing you $7,500.00 a year to carry Amex.

Are you going to lose more than $7,500.00 a year in profit by not carrying them. Are you going to lose the good word of mouth you get from your customers who would be inconvienced.

More importantly are you going to get one bad comment from one disgruntled prospective customer.

Remember in advertising a company tipically spends 85% of their ad revenue to get new clients and rely on their rep and service to keep their exsisting client.

Just a thought from a fellow business owner
Steve

I never leave home without it...

In business you gotta be able to take the customers money...every way possible.

It may inconvenience you, but you never want to inconvenience your customers...

> " please note that the use of an amex card directly impacts our allready small profit margn. If you have the option please use a M/C , Visa, or Discover . We appreaciate your continued patronage and will strive to continue providing our low prices ".

Wayne, this seems like the best option. I would list the Visa and MasterCard payment options first, then the above message followed by the American Express option. Personally, I would use my MC instead after reading that.

Is this against your AmEx agreement?

I vote for good old C.O.D.

I'd go with the surcharge option. I'd bet that most amex holders have at least one other card and use it by choice, so you're covered both ways with a surcharge.

Surcharging is common in the UK, it costs me a lot less to take debit card transactions than CC trans for large orders. Nearly all budget airlines charge a CC surcharge.

All I use
 

Personally that's all I use, they have the best combo of security and benefits (membership miles). They are more expensive for merchants, so I understand the concern.

I use AMEX almost exclusively, all gas, shopping etc, one bill, great customer service, year end review (did we really spend that much)
I've been with them since 1964!!

I would be interested to hear more about this.

And on a related note:

http://www.snopes.com/business/bank/blackcard.asp

I have a friend / biz associate in Germany that has a black card. I have seen it in action & it works. Pretty classy idea.

Having a couple of cards Visa, MC, Discover. I have to say Amex wins hands down when it comes to protection. All other cards fail, I use my Amex for big puchases in case anything goes wrong. I don't leave home without it

I hate them. I sell Porsche products also - and they eat a ton of the precious profits....

BUT many, many of my high-end customers use AMEX so I must accept it.

As a small business owner, I take AMEX because many of my customers use it. Why should I remove a means for easy payment. Id rather pay more in fees than wait 2-3 weeks for payment form the same customers by check. Its all about cash flow for me. The quicker I get my money the better.

After all if I was operating on margins that would be affected by credit card fees I would close up shop and do something else.

I'd like to hear some of the success stories about Amex stepping up when something goes wrong.

I had a dispute on my company card and Amex immediately and permanently sided with the vendor. I don't know why I even bothered to file a claim, their "investigation" was a joke.

How did they earn this rep?

most amex users have mc or visa. in my restaurant, i take amex because a lot of "business meals" are paid thru company amex cards. I would think most of your business is for personal use and thus a potential buyer would have alternate methods of payment. Of course for first time online buyers, the amex card would give them more peace of mind.