Many business to business merchants don’t accept American Express because of the real or perceived high cost of merchant fees and risk of dispute losses vs. the negative impact on profit margins. Here’s a fresh look at the reality of accepting American Express cards in 2019, including as compared to other card brands.
Top Reasons To Accept Accept American Express
- Average higher order. Your best customers are also using American Express for corporate purchasing. You may be losing business by not accepting the cards. For example, an actual merchant 1.7X higher average order than other cards.
- Higher annual spend. For example, an actual merchant has 3.0 X higher annual spend from American Express buyers than other cards.
- Merchants can completely offset the cost of acceptance, usually by surcharging as explained in this article Credit card surcharge rules and laws 2019.
- Amex SafeKey provides card not present fraud liability shift as do other card brands. If merchants support it for customer initiated payments, whether online pay portal, invoice click and pay, or ecommerce, they’re protected from friendly fraud ‘it wasn’t me, I didn’t authorize it’ chargeback losses. Rather than defend the chargeback, prevent it from happening and fighting to get your money back.
- Customers can take advantage of your early pay discounts and also use the The Pay Over Time option from American Express to extend their cash flow. You get paid on time to improve your cash flow, and customers extend their credit with someone else to manage their cash flow.
- Free business promotion. It depends on your business, but in some cases, especially small businesses, American Express does a lot to promote your business online and via other methods. How valuable is that?
- Rates may be lower than you think. Fees have broadened into more categories by card type over the years so it’s not just one rate for everything. You may be able to negotiate if you’re a very large business. The biggest expense for other card brands is interchange; if not managed properly, fees may be the same or higher than American Express depending on the card type.
The Christine Speedy difference. Managing credit card fees is critical, and so is understanding the nuances of credit card processing that impacts all merchant fees. the reality is most players in the payments and consultuing industries are not familiar with rules that impact your profit and risk. Call 954-942-0483, 9-5 ET for expert advice about all things credit card processing.