Why More Retailers Than Ever Are Accepting Amex
Perks and welcome bonuses aside — none of which are insignificant, of course — your credit card is only as useful as the merchants that accept it. That's one area where Amex has historically lagged behind other card issuers such as Visa and Mastercard, which are accepted at many more retailers both in the US and abroad.
Five years ago, Amex started to heavily focus on increasing acceptance so that you can use your card where you want to. Here's a look at the progress it's made in that time.
The Case for Amex
It's obvious why Amex wants you to be able to use your card at more merchants, but the issuer makes a compelling case for merchants to want this as well.
According to a Nilson report, Amex customers spend on average 3.1x a year more than non-Amex customers. Similarly, the average transaction size of an Amex customer is 1.8x larger than a non-card member's. The same report also showed that Amex customers spend an average of $14,000 a year on their cards. In short, Amex customers can be more valuable to merchants because they tend to spend more and make larger purchases.
So why do fewer merchants accept Amex? Historically, the answer has been because Amex charged higher credit card merchant fees than Visa and Mastercard.
According to Amex, this is no longer the case. On average, the cost for merchants to accept Visa and Mastercards has risen, while the cost to accept Amex has decreased over the last 10 years. In that time, Amex has invested heavily in fraud prevention capabilities and other business tools such as Shop Small/Small Business Saturday and Amex Offers. With Amex adding 10 million new card members globally in 2017, businesses now have a much better reason to accept Amex.
It's clear that Amex's initiatives are working, with 1.5 million new locations in the US alone deciding to accept Amex cards in 2017. In 2018, Amex has added at least a million more locations. A big part of this has been Amex's OptBlue program to support small businesses.
OptBlue
The primary goal of OptBlue is to remove the hurdles associated with accepting Amex cards. This program highlights an important point: It's the credit card processor that sets the credit card merchant fees, not Amex itself. OptBlue will help you find a rate that works for your business, and combine your statements and payments no matter what cards you're accepting. This means if your customers use a mix of Visas, Mastercards and Amex cards, you'll still receive one single payment and one statement.
Amex also provides free marketing for OptBlue merchants to drive customer traffic and help Amex customers discover all the places where they can use their cards.
This means everything from providing free signage indicating that a business accepts Amex to promoting the business to Amex card holders, both in email alerts and through their online accounts. Amex will even use a customer's transaction history to promote businesses where they are most likely to spend, all at not cost to the business.
Bottom Line
Amex still has work to do before it completely closes the acceptance gap with Visa and Mastercard, but programs like OptBlue go a long way toward that goal. The issuer expects "virtual parity," or essentially the same level of acceptance as Visa and Mastercard, by the end of 2019. Amex clearly understands how valuable its customers are, and are taking a constructive approach to support businesses and make it easier and cheaper for them to accept Amex cards.
While TPG is partnering with American Express to promote Amex acceptance to merchants, this content is not provided by Amex and any opinions, analyses, reviews or recommendations expressed here are those of the author's alone.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.