Why American Express?

Slice

Does anyone know what the difference is between American Express and any other credit card?

Like I don't see the point of AmEx given that it's not accepted anywhere - are there actually any advantages>?

BuffyBot

Well the "traditional" Amex is a charge card, not a credit card as such. The Wiki article states that "a charge card is similar to a credit card, except that the charges made to it must be paid-off each month, rather than having revolving credit which carries a balance forward". However Amex also issue credit cards (for example the Blue card) which means sometimes it's hard to figure out which people are talking about.

Amex is accepted in many place - and for the traditional Amex card, and especially it's gold/platinum and higher levels there are benefits aside from just payment. Amex also have a lot of corporate business.

vector

The reason that most bricks and mortar merchants (in Ireland at least) don't accept AMEX is because they are the slowest to pay. That is the time between the transaction date and AMEX putting the money in the merchants current account/or sending a cheque is longer then Visa/Mastercard.

Also, and I'm niot sure about this, the percentage fee per transaction is not as competitive for AMEX. I mean with Visa/Mastercard you can negoitate down to 1.75% with your bank (or provider) if you are switched on, but not so with AMEX.

However merchants will often signup for AMEX but not tell anyone, only accepting a card when the customer really has nothing else and has already run up a bill (eg a hotel)

starn

If you carry your balance forward on a Amex card you will get killed with intrest. Even with a minimal balance after one month at the very least you you can expect to owe Amex the shirt off your back, your first born son and have of everything you make for the rest of your life, and anything else you might have lying around.
If you can pay it off every month the benifets which male it worth while like air miles. The cards also generally have a higher limit. They also have the fabled BLACK card. . I have heared of people with a BLACK card buying Houses and cars on it

GerardKeating

vector wrote:

The reason that most bricks and mortar merchants (in Ireland at least) don't accept AMEX is because they are the slowest to pay. That is the time between the transaction date and AMEX putting the money in the merchants current account/or sending a cheque is longer then Visa/Mastercard.

Also, and I'm niot sure about this, the percentage fee per transaction is not as competitive for AMEX. I mean with Visa/Mastercard you can negoitate down to 1.75% with your bank (or provider) if you are switched on, but not so with AMEX.

However merchants will often signup for AMEX but not tell anyone, only accepting a card when the customer really has nothing else and has already run up a bill (eg a hotel)

RyanAir no longer accept Amex, they had a bit hissy fit with them a year or three ago over chanrges and stopped accepting them.

Slice

Ah, good old Wiki, should have thought of it myself - now to check Diners card.

Hmm, when I use to work in a call centre I remember there'd be guys on the phone going mental over the fact that we couldn't take payment by American Express, but that said I haven't come accross anywhere that readily accepts AmEx in this country anyway - or anywhere that would admit it - yet every so often you'd come across some sort of advert for it as though everyone would take it.

vector

Businesses that have lots of overseas (mostly US) tourists take AMEX.
For example craft shops near Newgrange, hotels near the Blarney Stone and so on.

There is an even less widely accepted card then AMEX. It's called JCB (see jcb.co.jp).

edit: oh from it sounds like AMEX merchants in IE also accept JCB

Our man in Havana

Surely Discover is even worse than AMEX and JCB?

A Dub in Glasgo

I have an American Express Platinum cashback credit card. It pays a cashback for purchases and I put everything that I can on to it. Cashback rates are:

0.5% £0 - £3,000
1% £3,001 - £7,500
2% £7,501+

I put about £12,000 on it over the course of the year, paying the balance off each month and giving me £150 cashback at the end of the year.

Edit: TI am in the UK so it must be more readily accepted. Some of the places that I use it with

ASDA
Morrisons
Sainburys
Amazon
DVDImport.com
DVDPacific.com
Argos
Heathrow Express
Various airlines
Various restaurents
WH Smith
various train companies
Various hotels
Various car parks
La Senza
Next
Various motorway service stations
Various petrol stations
Sentit
Various clothes shops

vector

Bond-007 wrote:

Surely Discover is even worse than AMEX and JCB?

I'm only talking about international Cards.

If you want to include Discover (US), you must also include Bankcard (AU) which has even less cardholders.

Our man in Havana

Didn't know that Discover was US only.

BuffyBot

Didn't know that Discover was US only.

It has *some* international acceptance, but not a lot.

Tom Dunne

Slice wrote:

Like I don't see the point of AmEx given that it's not accepted anywhere - are there actually any advantages>?

This is a very common misconception. I have an American Express for the past four years and there are very few places in Ireland that don't take them any more.

For me personally, the main benefit is the fact that you have to pay the full amount back each month - so no racking up interest charges. The only problem I had was with the muppets in BOI who handle American Express here.

parsi

At work we had a corporate American Express for emergencies and internet shopping and it was worse than useless - it was a common ocurrence for internet traders (eg Sun) to not accept it. After many missives to our finance department - written on payment authorisation forms for refunding our own cards - they finally caved in and got a visa...

starn

I work with someone who use to be a BDE [Bussiness Development Exec] for Amex his job was to sign SME's up to AMEX. I was talking to him yesterday about this and he told me that the reason he left AMEX was due to the fact that they has reached Saturation point. Although most traders dont display the fact that they accept AMEX [ Due to the higher commison fees]. Amex in 70 -80 % of bussiness