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I was a big Amex user for years, so I understand the sentiment.Originally Posted by atxtraveler
I agree with this statement also for American Express. If a store does not take it, I inform the manager that this will be both my first and last visit if they do not accept AMEX.
But as a retailer (not food, but consumer electronics) I also fully understand and respect merchants' decisions to say away from Amex. And I'm frequently tempted to cut acceptance of the card myself.
Amex charges merchants a painful fee - typically 50% higher than that of Visa, MC, and Discover. And there's no negotiation, where with Visa and MC, at least, merchants can shop for better deals.
Next, when I told Amex that due to a rate increase (in my case, to 3.15%) that I might de-emphasize acceptance of their card on my website, they gave me a whole legal intimidation of the consequences of that, and faxed me my acceptance agreement.
Now I also use my Costco Amex (restaurants and travel only) because it offers the best rewards. But I know exactly why that's possible - they pull it from the merchants.
In my line of work, I need to take the card. Otherwise, customers, like yourself, might go elsewhere.
But with restaurants? Food is unique, and I'm always proud of a restaurant, or any vendor, who has the strength to fly the bird to Amex. In fact, I'm maybe more likely to patronize them.
josephstern,
I understand both sides of the issue as well, but I base my food decisions on this.... a place that takes some sort of reward program from me gets the nod for a first visit. The quality of the food and unique environment makes me return. If you don't have access to my preferred payment, you lose out on the marketing capabilities to reach me on my first visit.
If a small business owner does not see the value of accepting a customer's preferred payment method, then they should not expect that customer to return. Someone said it is 10 times more difficult to get a new customer than to retain one, right?
I understand both sides of the issue as well, but I base my food decisions on this.... a place that takes some sort of reward program from me gets the nod for a first visit. The quality of the food and unique environment makes me return. If you don't have access to my preferred payment, you lose out on the marketing capabilities to reach me on my first visit.
If a small business owner does not see the value of accepting a customer's preferred payment method, then they should not expect that customer to return. Someone said it is 10 times more difficult to get a new customer than to retain one, right?
So if there were a credit card that charged merchants 10% and gave the cardmember back 8%, you'd encourage merchants to accept it? Surely, customers would want it, right? But it would be patently ridiculous.
Essentially, you're getting other patrons of the restaurant to subsidize your food by costing the merchant more.
Again, I do use Amex at restaurants (only) because of Amex's rewards there with my Costco card. But anywhere else, I just can't do that to the merchant.
Essentially, you're getting other patrons of the restaurant to subsidize your food by costing the merchant more.
Again, I do use Amex at restaurants (only) because of Amex's rewards there with my Costco card. But anywhere else, I just can't do that to the merchant.
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Essentially, you're getting other patrons of the restaurant to subsidize your food by costing the merchant more.
Again, I do use Amex at restaurants (only) because of Amex's rewards there with my Costco card. But anywhere else, I just can't do that to the merchant.
I would sign up the first day. Let me know where I can get it.Originally Posted by josephstern
So if there were a credit card that charged merchants 10% and gave the cardmember back 8%, you'd encourage merchants to accept it? Surely, customers would want it, right? But it would be patently ridiculous.Essentially, you're getting other patrons of the restaurant to subsidize your food by costing the merchant more.
Again, I do use Amex at restaurants (only) because of Amex's rewards there with my Costco card. But anywhere else, I just can't do that to the merchant.
If I thought any restaurant beyond the Cheesecake Factory would go for it, then I'd be the first to offer it.
It's like those companies on eBates: If they offer 10% off, you've got to assume that they're ridiculously overpriced in the first place.
It's like those companies on eBates: If they offer 10% off, you've got to assume that they're ridiculously overpriced in the first place.
You might want to print this out and send it to your small business friends:
Link to Story
How Accepting Credit Cards Can Increase Sales And Revenue
Accepting credit cards is becoming a must for entrepreneurs and small businesses in today's business environment. There are numerous social, demographic and technological factors combining to make plastic the payment form of choice for increasing numbers of people.
By the Numbers
The average American cardholder has roughly four bank credit cards. Credit card purchase volume has been expanding about 15 percent per year for the last five years, or three times faster than the increase in overall U.S. purchases. Debit card purchases are growing even faster, at more than 50 percent per year. Credit and debit cards are expected to account for 33 percent of all purchases by next year and for 43 percent by 2005. According to one estimate, businesses forfeit up to 80 percent of consumer impulse buys if they don't accept credit cards.
Why People Use Credit Cards
To understand the growth in credit card use, it's important to grasp the reasons for their popularity. Consumers typically use cards because:
# They don't want to carry cash
# They want to save cash in hand
# They want to gain loyalty points (such as airline miles)
# They are making a large purchase
# They are looking to float money in a bank account
# They are making a reimbursable purchase for a company
Link to Story
How Accepting Credit Cards Can Increase Sales And Revenue
Accepting credit cards is becoming a must for entrepreneurs and small businesses in today's business environment. There are numerous social, demographic and technological factors combining to make plastic the payment form of choice for increasing numbers of people.
By the Numbers
The average American cardholder has roughly four bank credit cards. Credit card purchase volume has been expanding about 15 percent per year for the last five years, or three times faster than the increase in overall U.S. purchases. Debit card purchases are growing even faster, at more than 50 percent per year. Credit and debit cards are expected to account for 33 percent of all purchases by next year and for 43 percent by 2005. According to one estimate, businesses forfeit up to 80 percent of consumer impulse buys if they don't accept credit cards.
Why People Use Credit Cards
To understand the growth in credit card use, it's important to grasp the reasons for their popularity. Consumers typically use cards because:
# They don't want to carry cash
# They want to save cash in hand
# They want to gain loyalty points (such as airline miles)
# They are making a large purchase
# They are looking to float money in a bank account
# They are making a reimbursable purchase for a company