Many merchants fail to accept American Express in their businesses. Typically, this cards company does charge a higher merchant discount fee than Visa or MasterCard. However, upon investigating recent trends and statistics, it becomes obvious that American Express card holders account for a large number of consumers who tend to spend more and stay loyal to the American Express company. American Express accounts for more than 24% of the total dollar volume of credit card transactions in the United States. This is more than any other card issuer can claim to do alone.
By accepting American Express in your business, you are giving your customers more payment options. A 2007 survey suggests that 59% of consumers would choose a merchant who accepts American Express over one that does not. 74% of American Express card holders say that it is their preferred card of choice. Also, American Express card holders tend to be very loyal. Therefore, if your company is not accepting American Express, they may be losing business to a competitors who are.
Although some merchants are discouraged by the higher fees that American Express charges for accepting their cards, there is validity in the fact that American Express card holders spend more. According to data provided by The Nilson Report in 2003, the average American Express card annual charges were $9,600, while Visa’s were less than half that amount at $3700, and MasterCard’s were only $1,900. Most merchants who do their research agree that the increased sales volume makes it worth the extra fees associated with accepting American Express.
If you would like to accept American Express in your business, talk to your merchant account provider or visit American Express online for more details. This is one card issuer who may be able to help you gain and retain business from their loyal card holders. The American Express card is growing in popularity and is being accepted in more locations around the world everyday.
Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.