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Comment by magic_beans | Hacker News Reader

I've live in New York and I've literally never been to a single bar or grocery store that accepts American Express.

Anyone know why this is?

For regular businesses, the transaction fees (both % and per transaction) are higher for AMEX than VISA or Mastercard. So a lot of small businesses don't take them.

With some processors, there's also a monthly fee if you take any AMEX, so it's better to not take it all.

Amex charges higher fees per-transaction. Because they're a charge card, they make their money off the transaction fees, and not off the interest rates a card accrues. Conversely, this means they have to charge more on the front-end to maintain profitability.

They also offer credit cards. They differ from VISA and Mastercard in that they underwrite many of the lines of credit themselves (they make about $5 billion per year on interest).

Most AMEX cards are credit.

Yep - great to see them in trouble. Most small businesses hate them as they take from their bottom line.

IIRC amex also tried to stop retailers letting customers know just how much they charge per transaction and wouldn't let shops offer different prices to counter-balance Amex greed.

Overall they sound thoroughly nasty and I cheer their demise.

ps whenever I can I use cash at an independent business so they keep the 2-3% instead of some big bank.

Is there a bank or credit issuer who doesn't act substantially the same?

>Overall they sound thoroughly nasty and I cheer their demise.

They're wonderful as a consumer, and I would be quite sad if they were to go anywhere. I've had multiple large companies try to screw me over, and I went to Amex and they went to bat for me and took care of the issue.

I have 100% confidence that I will be taken care of for all purchases related to my Amex card, which I cannot say even for my other "prestige" cards such as the Chase Sapphire Preferred, etc.

They charge significantly more off the top vs Visa/Mastercard, and they want their money before you get yours.

I appreciate it because its good for me as far as consumer protection, but I fully understand smaller businesses not wanting to deal with the added expense/hassle.

2.5% transaction fees instead of 2%.

The average grocery store has a profit margin of 1% to 3%, from what I understand.

Yeah, it's as simple as that. When their product that is 25% more expensive than competitors and less useful (accepted at less retailers), they deserve to get knocked off their pedestal. No one cares about the Amex brand. They are a commodity provider in the payment market.

Their consumer protections are significantly better than other credit card companies. That alone makes owning a gold card worth it to me.

It's 3.5% vs 2-3% on most cards.

https://www.nerdwallet.com/blog/credit-cards/retailers-accep...

So they are all taking a good wedge for very little.

Thing is they don't have to. Visa and co often have lower transaction fees for places like grocery stores exactly for that reason. Amex can adopt the same behavior.

Higher fees than the competition. Otherwise known as their "brand premium".

If you live in NYC, you must be actively trying to avoid places that accept AMEX. It's accepted practically everywhere in Manhattan at least.

If you live elsewhere in New York State then, yeah, AMEX charges higher fees to merchants so many smaller ones don't want to deal with them.

Where in New York do you live? Everywhere I go in Manhattan accepts Amex. I've even been to a bar that only accept Cash or Amex ("the Costco of bars").

I live in New York and have been to a lot of bars and grocery stores that accept American Express.

IIRC, Aqua Santa in Williamsburg used to only accept AMEX. Think they take other cards now though.

I have to assume you're lying.

The vast majority of bars and even most grocery stores in NYC accept AmEx.

I live in Manhattan and my experience has been that every bar accepts Amex.

Higher fees.

FWIW I live in Chicago and rarely find a place that doesn't accept AmEx.

You've never been to a Whole Foods?

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