Should my business accept American Express?

Should my business accept American Express

As a business owner, one of the most important decisions you’ll make is which forms of payments to accept. American Express (AMEX) has over 100 million credit cards in circulation and is a widely recognized and accepted credit card, but is it the right choice for your business? 

In this article, we’ll explore the benefits and drawbacks of accepting American Express, so you can make an informed decision for your business. Like all credit cards, you can accept American Express credit cards online, at your storefront, or while mobile. The same technology used to accept Visa and MasterCard, like payment terminals, is used for AMEX.

Benefits of accepting American Express

There are numerous benefits of accepting American Express. In a nutshell, the key benefit is that you can expect higher sales due to more frequent sales (more customers) and an increase in transaction amount (bigger purchases).
  1. Large customer base: American Express has a large customer base and is widely accepted at merchants around the world. By accepting American Express, you may attract more customers who prefer to use the card.
  2. Increased sales: Customers who use American Express cards tend to spend more than those who use other types of cards. This means that by accepting American Express, you may be able to increase your sales and revenue.
  3. Fraud protection: American Express offers a range of fraud protection services to merchants, which can help to reduce the risk of fraudulent transactions.
  4. Access to marketing and promotional opportunities: American Express provides merchants with access to marketing and promotional opportunities, such as the ability to participate in American Express’ “Shop Small” campaign, which can help to drive additional traffic to your business.
  5. Premium customer base: American Express cardholders are often considered as more affluent and have higher purchasing power, which could be beneficial for business that cater to higher-end products or services.

Drawbacks of accepting American Express

Although there are strong benefits to accepting American Express, there are some drawbacks. To summarize, the fees to merchants are generally a little higher with American Express so there is a higher cost to doing business.
  1. Higher fees: American Express typically charges merchants higher fees than other credit card networks. This means that accepting American Express may not be cost-effective for businesses with thin profit margins.
  2. Limited acceptance: While American Express is widely accepted, there are still merchants and locations where it is not accepted. This could limit the number of customers you can attract. You’ll notice many low-margin businesses don’t accept AMEX.
  3. An extra application process: The application process for accepting American Express is sometimes handled directly with AMEX so it can take an extra step.

Making the decision to accept AMEX

Whether or not you should accept American Express depends on a variety of factors, including the cost of acceptance, the demographics of your customer base, and the type of products or services you offer. Consider your business’s unique needs and weigh the pros and cons before making a decision.

For most merchants that we work with, they find that the benefits of higher sales outweighs the cost of accepting AMEX as a payment method. They find that AMEX can bring in new customers that spend more than the average credit card holder. Click here to get started with accepting credit cards today.


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