Why Is Amex Not Accepted?

[fotog]

My building accepts credit cards for the monthly maintenance fees; however when I tried to use my AMEX Card the office manager could not put it through her machine and then called me later and said they do not accept AMEX.

She said apparently it is on the bank side that won't accept it; but she could not tell me a reason why.

Does anyone specifically know who decides what credit cards are acceptable for use? Is it the bank or the business at point of purchase?

Can I go to the bank to try to get them to accept AMEX?

Or should I insist that the building manager needs to speak to the bank? The bank they use is Thai Farmers Bank.

I suspect the vendor or the bank have to pay a higher service fee to AMEX than they pay for Visa or master card and therein lies the problem.

I have a Visa Card but don't use it in Thailand because the currency transaction fees are higher than by using AMEX.

[froggerman]

Yes amex definitely charges a higher service fee than visa/mc and other cards, it's why many places don't take amex.

Usually visa/mc/etc is 2.5-3% or so, amex 5% or so.

[PalMan]

Many retailers, restaurants etc back home refuse to accept AmEx due to the higher transaction fees and stricter policies

As is their right, up to the merchant to dictate what forms of payment they'll accept, just as the customer has the right to then take their business elsewhere. You can't really do anything else to apply pressure on them other than asking (nicely) or offering to cover their extra expenses, time & trouble etc.

Visa/Mastercard is a completely separate payment processing network, not as if they or even their bank can just "add" AmEx as an option to their existing PP service.

Most likely not worth their while going to all the trouble setting up as an AmEx merchant if you're the first customer that's raised the issue, it's not a quick and easy process, AmEx is only interested if there's a potential significant volume as well.

Edited May 18, 2013 by PalMan

[Chicog]

Back in the 80s when I worked in Payment Systems, many people took the old "American Express Welcome" decals and replaced them with "American Express Tolerated".

[bonobo]

As posted above, accepting AMEX is an entirely different application process than the other cards. You can make one merchant application for MasterCard, VISA, and several other cards, and they are all processed at the same time by the same company.

However, AMEX requires a completely different application process, sometimes requires a different bank to process the charges, and the cost to the merchant is higher.

[arthurwait]

Because they sponsor Brighton.

[whybother]

Most banks don't accept Amex through their payment systems. Most businesses don't want to pay the extra amount for Amex especially if they get few payments using Amex.

It would be pointless insisting either the manager or the bank accept your Amex card. The bank won't change for you, and the manager isn't going to pay the extra costs for setting up Amex payments since few people would pay using Amex anyway.

[fotog]

Thank you all for your input; much appreciated!

[wamberal]

Diners Club is similarly unpopular with most merchants.

[whybother]

Are good summary of the differences between Visa / Mastercard and Amex / Discover (?) (/ Diners Club).

http://www.creditcards.com/credit-card-news/help/differences-visa-mastercard-amex-express-discover-6000.php

[theoldgit]

Because they sponsor Brighton.

With a name like yours you must be a Palace fan.

[arthurwait]

Because they sponsor Brighton.

With a name like yours you must be a Palace fan.

Yes.

[JLCrab]

When I first started traveling in Asia 25 years ago, if a credit card was accepted at all, AmEx was usually the only card that was accepted -- at least the merchant knew at some point they were going to be paid. Back then it was mostly only at hotels and airline ticket offices. No ATM machines -- AmEx Traveler's Checks were a necessity.

[fotog]

New development:

I went back to the office manager with my Visa Card today and her machine (Thai Farmers Bank) could not read the card. She said the machine could not read the chip in the card.

Then I went to Villa Market (Kasikorn Bank machine) and used the same card with no problem.

I just got off the phone with my U.S. bank that issued the card and they told me there are no restrictions on the card and the problem is not on there end.

So is it the merchant or the bank that is the problem?

[PalMan]

I've had cards that work in some machines and not others, never bothered to work out which is "at fault", just use a different card. Obviously no one with any sense travels with only one card right?

Or of course you can just (gasp!) pay cash. . .

[geriatrickid]

Service fees to the merchant are higher, however, the vetting process at AMEX is stricter. Many merchants cannot meet the minimum security requirements AMEX requires.

[NancyL]

When Hubby and I owned a retail business in the U.S., we investigated accepting AmEx and decided it wasn't worth the hassle. Most customers who wanted to use credit cards had MC/Visa . We had to make separate arrangements for AmEx and pay a higher rate. They had some half-baked scheme where we could pay the same rate as for MC/Visa transactions, but we wouldn't actually have the funds deposited into our bank account for six weeks vs. a day or two for Visa/MC. Discover was also weird. We could use the same merchant service provider, but the rate was higher and the money didn't hit our account as soon as with Visa/MC.

Edited May 21, 2013 by NancyL