American Express is accepted all over the world, in more and more locations everyday. With their catchy advertisements and customer intensive programs that include cash back bonus rewards, they produce loyal card holders who like to be able to use those accounts. In fact, American Express card holders are believed to spend more on average than those of Visa, Discover, or MasterCard. In some recent surveys, 74% of American Express card holders stated that American Express is their preferred card of choice.
Most merchants are aware that American Express traditionally charges higher fees than other credit card companies. However, there is some validity behind the claim that American Express card holders spend more. This might make the higher fees well worth it for most businesses. 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. Plus, with American Express card holders being so loyal to the American Express company for the benefits and services associated with their credit lines, accepting American Express can add value to your business. If you don't give your customers the option of using their card, they may shop with one of your competitors who will.
A 2007 survey suggests that 59% of consumers would choose a merchant who accepts credit cards, especially with American Express over one who does not. On the other hand, most merchants would agree that if all of their customers used American Express, the high fees would cut into their bottom lines. However, if you are interested in providing American Express as a payment option to increase your overall sales and provide more payment options to your customers, contact your merchant account for additional details.
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