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2.5% transaction fees instead of 2%. The average grocery store has a profit margin of 1% to 3%, from what I understand.
by zyxley 11y ago
2.5% transaction fees instead of 2%.
The average grocery store has a profit margin of 1% to 3%, from what I understand.
- mahyarm 11y agoThing is they don't have to. Visa and co often have lower transaction fees for places like grocery stores exactly for that reason. Amex can adopt the same behavior.
- AngrySkillzz 11y agoYeah, it's as simple as that. When their product that is 25% more expensive than competitors and less useful (accepted at less retailers), they deserve to get knocked off their pedestal. No one cares about the Amex brand. They are a commodity provider in the payment market.
- lostPixels 11y agoTheir consumer protections are significantly better than other credit card companies. That alone makes owning a gold card worth it to me.
- branchless 11y agoIt's 3.5% vs 2-3% on most cards. https://www.nerdwallet.com/blog/credit-cards/retailers-accept-american-express/ https://www.nerdwallet.com/blog/credit-cards/retailers-accep... So they are all taking a good wedge for very little.