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If you’re traveling abroad quickly, you American Express Card It may not be the right card to bring with you. That’s because many merchants outside the US do not accept AMEX credit card payments.
Swipeing American Express in US merchants is pretty common, but what is hugging merchants in other countries? One possible reason is the high American Express fees that accept network cards.
Why don’t all businesses accept American Express?
While you are out, you can visit restaurants and retailers who do not accept Amex card payments. This is because American Express charges merchants more than their competitors.
All credit card networks charge a processing fee Companies accepting card payments From that network. However, some prices are higher than others. Processing fees are the cost of doing business, but I understand why merchants want to reduce their fee payments. In particular, if you do not accept one type of card (such as American Express), you will not be able to undermine your revenue.
The difference in charges from Amex and other networks comes down to dollars and cents, but that is summed up.
Visa and MasterCards tend to charge Credit card processing fee Between 1.15% + $0.05 and 2.5% + $0.10 per transaction. American Express is 1.43% + $0.10-3.30% + $0.10 per transaction. This means that if your business sells $10,000 credit card transactions per week, you can pay around $115 to $250 on Visa and MasterCard fees, while AMEX fees can pay around $143 to $330.
How does American Express differ from other credit cards?
The main difference between American Express, Visa and MasterCard is that Amex acts both as a card network and as a card issuer. Visa and Mastercard Although it is the world’s largest credit card network, it does not issue its own credit card. Instead, you will find logos on cards issued by Chase, Capital One and other banks.
American Express offers a lot of its own credit cards, including many popular ones Rewards your credit cardIncludes cashback options and income options Membership Reward Points.
Another difference is that unlike many other issuers, American Express still offers many cards that cardholders keep from balancing. In recent years, American Express has introduced methods to balance cards, such as pay over time. Plan it It’s a feature, but many of that cards still function like they do Charge Card. With a charging card, you must repay the full balance each month, compared to a credit card. This allows you to carry your balance on a monthly basis.
And of course, the processing costs that Amex charges are different from other credit card networks.
How expensive is Amex merchant fee?
American Express outlines merchant rates American Express Merchant Reference Guide. The main fee it charges is called discounts, which changes, but usually drops between 1.43% + $0.10 and 3.30% + $0.10.
Other sales charges include non-span transaction fees (if credit cards are not present and the numbers are locked), voice approval fees, check fees, and paper statement fees.
What kind of businesses accept American Express?
With exceptions, American Express is accepted at most airports, restaurants, hotels, grocery stores, subscription services and online merchants. According to the websiteAmex is currently accepted in 99% of US locations that accept credit cards. However, this may not be so true in other parts of the world.
Conclusion
When it comes to processing fees, we can see why American Express cards aren’t always your favorite for merchants. Swipe your Amex card in the US is more common, but if you are traveling abroad, you probably need a payment method in your wallet other than AMEX. Visa or MasterCard credit cards have many excellent options accepted worldwide, and many of the best cards do not charge foreign transaction fees and are perfect for international travel.
