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In the past you have have been hesitant about accepting American Express as a form of payment. If you have been you have certainly not been alone as it seems like very few merchants accept it. Most cite the high interchange fee as the reason why they don’t accept it but American Express has been on a campaign to increase the usage of their cards and they have some information that merchants might want to hear.
Why You Should Accept AmEx
In recent years the high interchange fee alone has been a sufficient enough reason not to accept American Express, especially when compared to Visa or MasterCard who offered much lower interchange fees. That has been changing. Visa and MasterCard have been raising their fees and American Express has actually been lowering theirs to try to take advantage of this and increase acceptance.
American Express has also been increasing its investment in fraud prevention technology in an attempt to make using their cards as safe as possible. Throw in all kinds of new programs to help encourage usage and these cards are seeing a huge growth in popularity.
If that has not grabbed your attention then how about this: According to a Nilson Report Amercian Express card holders spend $14,000 per year on their cards which is more than 3 times the average of the average card holder. They also spend more on their average transaction, 1.8 times more. That could be a lot of business that you are missing out on!.
It’s Working
Their program to increase acceptance has been working. Over 2.5 million new merchants began to accept the card during the past two years and AmEx believes that it can almost achieve parity by the end of 2019. American Express is the fastest growing card in the United States so if you are a merchant that accepts cards and you don’t take American Express you should reconsider.
As always if you have any questions your payment processor (JLE Business Consultants) is the best person to talk to. They can help you determine if accepting American Express is right for you and help you get up and running if you decide to do so. It may not be for everyone but it could be for you.
