Question - How important is it to accept AMEX?
 

These guys are the highway robbers of the 20th century. I'm thinking of dropping them completely, as they drive up my costs, which drives up my prices.

How important is Amex to everyone else? I personally don't use them.

Thanks in advance for your input on this...

-Wayne

I only use it to buy online. They will chase any fraud to the ends of the earth.

I used to use it exclusively. However, I switched to a Debit card. After a transaction gone bad I found I had little/no protection with the card. I may go back to AMEX for that protection.

What % of customers use AMEX?

I use AMEX for biz travel, hotel & entertainment, rental cars, etc. MC / VISA for personal stuff.

edit: I think that the loss protection on Debit Cards has improved recently, can anyone comment??

I have been very pleased with Discover, which I use almost exclusively. Their fraud protection is good (I don't mind their calls verifying card usage at all). Also, I hear that their costs to retailers are lower than most.

I have never seen the advantage to having an AMEX card, and therefore have never had one.

Tom

Bill, Most debit cards have the $0 or $50 liability limit for a stolen card or account #. However, if you get ripped by a crap vendor recourse is typically nonexistant.

If it's different between banks I'd like to know as well. BTW, my card is issued by a Credit Union.

Is it against their ToS to charge a surcharge?

I know it is with VISA/MC, but I know some comptuer parts vendors charge 2-3% extra if using AMEX, though they may technically be breaking the rules.

i don't take it. they just pull out a visa or m/c when i say no. bad enough with the fees on those.

My company (a car club) collects annual dues. We see about 20% using VISA, 41% using MC, 26% using AMX, 12% writing checks.

I will always accept AMX as their users are more likely to renew and spend money on merchandise. I'll pay their higher charges as I am still making money...

Nobody ever said you had to take every form of payment...

Then again, you could deal with it until an item is returned for refund, and make the AMEX holder fork out the 2-3% or whatever it is you'd get charged for a return transaction...

I used to sort of LIKE to use AMEX for my business expenses. It kept things seperated, and virtually all of the restaurants (that I used for business entertainment), hotels, airlines, and rental car companies are feeding from the corporate trough anyway...
That all makes a LOT less sense when you have your own business (as i do now), as opposed to working for a big Corporation, as I did most of my working life.

I use it almost exclusively and shop around based on that - fraud protection with a monthly pay off - no brainer. The Platinum card comes with so many free benefits it is amazing the upgrades you get everywhere - they itemize and analyze my charge statements etc. Great stuff!!

Plus I am not fiscally responsible enough for revolving debt.

Debit accounts are dangerous IMO - somebody gets ahold of that you are screwed and some banks offer no protection on personal accounts attached to it.

-Jeff

wayne when i shop with you, it is my MC backed check card, or my good ole visa.

i dont even have one for costco.

I have never even applied for Amex. They offer nothing to me that I can't get from a solid Visa/MC. They DO rob you blind, I always found that when analyzing the different cards and carriers.........

As for fees for any card, you do know that you can shop around on those too right?

-Chris

I only use AMEX to buy things online. They have the best fraud protection.

Visa has gone to bat for me a couple of times when I got fraudulently charged. Don't see a need for AMEX....they're just another credit card company to me, and there are plenty more where they came from.

Amex has awesome customer protection. I bought a new iMac (I should've stuck with my PC) two years ago and it had a problem with the motherboard. I tried to send it back to the distributor and they said call Apple. I called Apple and they said call the distributor. I called Amex and all was solved...

They also have great perks with amex points.

I know it stinks for vendors, but it's great for customers.

-dc

Wayne, I own a business and have vowed to never accept Amex because of fees charges. Any person who has had to be on the accepting side knows what a cost it is, and wouldn't scoff at a business not accepting. On the other hand I have heard great things from card holders.
I have found that the only clients (of mine, at least) who would insist on using any particular card have all of their other forms of credit maxxed out, and these are the clients that always seem to give me headaches.
-Jeremy

Not really - it's the customers who end up paying in the long run, in the form of higher prices.

-Wayne

Wayne, why would you want to limit the ways your customers can pay you? You're 99% down the field, the parts are in the shopping cart, Performance Products and Automotion aren't getting this sale you hope, and then all of a sudden comes the red flag, you don't accept the customer's preferred form of payment because it cuts into your operating margin?

I don't know any of the details of your business on the inside, but for most small businesses, revenue growth is the driver of everything-- it's all about sales, sales, sales, because once you cover your fixed costs, your net income increases dramatically. So what if Amex charges 6% if they allow you to generate additional sales that carry a 50% gross margin?

The other guys take Amex. What does that tell you?