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American Express credit cards among the least accepted amid merchants

Hearing the sentence, “Sorry, this card isn’t accepted here!” can actually be very frustrating for anyone to hear. This is true for most users of American Express cards as compared to Mastercard or Visa Cardholders. Want to know why?

This has something to do fees charged by the credit card service providers that charge the merchants when the customers make a certain purchase. Now, swipe fees actually aren’t the same throughout the board. This varies in accordance with the card type being used by you. Some among the merchants do not actually accept some cards that tend to charge higher fees for each swipe as compared to others such as American Express.

The notion stating that the swipe fees of American Express are way higher than any other credit card company is actually a myth. The truth is that American Express comes with an acceptance rate that is way lower than any other credit card network. Here is a list of facts that you should know about the reasons American Express actually isn’t accepted by various retailers or service providers.

One way the credit card companies make good money is via fees. However, this isn’t simply from the fees charged for the consumer such as annual fees. Now, when someone makes a purchase using a credit card from companies like American Express the merchant needs to pay a certain amount of fee to credit card issuing company over the transaction. Normally, the charge is nominal and anything higher than average isn’t picked by the merchants. This is the reason American Express isn’t the first choice among merchants given the higher fee charged for merchants. The average fee for Mastercard and Visa merchant ranged close to 2.12 percent while American Express charged 2.36 percent for the same.

According to Michael Outar, the owner of, the personal finance website, this might look like a small difference but the fees tend to add up & this is why many retailers refrain from adding American Express to their line of credit cards that are acceptable as it eats into their overall profit.

Now, it might be a bit strange for American Express to charge higher than average swipe fees which cost it, several merchants. However, the reason behind this is that American Express operates on a business model that is different than the Visa or Mastercard.

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