Why Do Some Places Not Accept American Express?

Some businesses do not accept American Express because the cost of accepting Amex can be higher than accepting other major credit cards. Merchant processing costs are one of the reasons businesses may choose not to accept American Express, although payment-processing arrangements and other business considerations can also affect whether Amex is accepted.

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Why Do Some Merchants Not Accept American Express?

The main reason I have personally heard from merchants is merchant processing fees. Businesses pay fees when customers use credit cards, and some merchants have told me that accepting American Express can cost them more than accepting other credit card networks.

For a business with a large number of credit-card transactions, even a relatively small difference in processing costs can matter. Some merchants therefore decide that accepting American Express does not make enough financial sense for their business.

Does American Express Cost Merchants More to Accept?

It can. The cost a merchant pays to accept a card depends on the merchant's payment-processing arrangement, transaction volume, and other factors. American Express has historically had a reputation for higher merchant acceptance costs, although the actual cost varies from one business and processing arrangement to another.

This is one reason you may encounter a business that accepts Visa and Mastercard but does not accept American Express.

Why Is American Express Not Accepted Everywhere?

Merchant fees are not the only possible reason. Businesses make their own decisions about which payment networks they will accept based on their processing arrangements, customer base, technology, and other business considerations.

American Express acceptance has expanded significantly, but that does not mean every business that accepts credit cards will accept Amex.

If you use an American Express card regularly, it is therefore worth having another payment method available for merchants that do not accept it.

Where Can You Use American Express?

American Express is accepted at a large number of merchants in the United States and around the world. However, acceptance can vary by business and location.

For a broader list of places where you can use an American Express card, see our guide to American Express accepted locations.

Why Some Places Don't Take American Express: Bottom Line

The main reason some businesses don't accept American Express is the cost of accepting the card. Merchants have to consider their payment-processing expenses, and some decide that accepting Amex is not worthwhile compared with other credit card networks.

That does not mean American Express is difficult to use in general. It simply means that Amex acceptance is not universal, so having another payment method available can be useful.