Question - How important is it to accept AMEX?

[Wayne 962]

Originally posted by North Coast Cab
I love my AMEX. I have one for my personal use, one for my wife's and one for my business expenses. One bill, one statement and seperate charging information for each card. If you're a volume user I can't see using anything else. The benefits and service are terrific.

John

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

-Wayne

[strother]

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.

[dimps8]

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?

[patkeefe]

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.

[jmarenas]

Just easy to charge and pay off each month.

[NY65912]

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

[derickc]

Originally posted by Wayne at Pelican Parts
I get the same thing out of my Capital One Business cards, with free miles to boot...

-Wayne

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.

[patkeefe]

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

[camgrinder]

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.

[Wayne 962]

Originally posted by camgrinder
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

[Erakad]

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

[jkarolyi]

>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.

[Cdnone1]

"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

[ruf-porsche]

COSTCO accept AMEX for purchases and not Visa or MC.

[dsdw40]

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

[Wayne 962]

Originally posted by jkarolyi
That would be interesting if Paypal charged Wayne less than AmEx did directly.

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

-Wayne

[island911]

Originally posted by derickc
. . .
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.

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?"

[rlh930]

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! :-)

[pjv911]

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

[copper]

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