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OP is talking about merchant fees. Amex is the most expensive card for merchants to accept.

chrisseaton 6y ago
Yes that's what I'm talking about as well. Merchants don't accept them because of their high merchant fees, but AmEx don't have high merchant fees for some flippant reason like to create a 'luxurious image' - they do it to create value for their card holders.
- bhupy 6y ago
  “Free money” paid for by merchants is a luxury, not a necessity.
  - chrisseaton 6y ago
    The consumers overall cover the costs - the merchants don’t just eat the cost.
    - bhupy 6y ago
      Yup, point remains. It’s an externality masquerading as a luxury. It’s also arguably regressive, since the beneficiaries of those rewards tend to be overwhelmingly rich, while the inflated prices are paid for by everybody else.
      - rvnx 6y ago
        It seems like a cashback card then
        bhupy 6y ago
        Yup, point remains. Cash back cards maintain the same characteristics. Traditional cash back cards are arguably less regressive since it isn’t just the wealthy that have cash back cards. In theory, a broader set of people are beneficiaries of a system that a broad set of consumers pay into via higher prices. AmEx cards OTOH are expensive enough to process that there still exists a broad set of merchants who refuse to process them. For those that do process them, it’s harder to say to what degree the costs are passed on to all buyers. And unlike cashback cards, Amex rewards beneficiaries heavily skew rich.
- chinathrow 6y ago
  This makes me sad. Card companies create value buy increasing prices to buy the card holders loyalty. I understand that this works but I think it is a form of corruption. Buying your customers loyalty rsp spending...
  - wsc981 6y ago
    I am not sure how well this strategy will work out in the long run. Personally I look forward to replace my Amex card with Apple’s card, once available for me. Here in Thailand many shops, hotels don’t accept Amex, so it’s harder to save up points for benefits, effectively reducing the value of the card.
- paulcole 6y ago
  Nearly every Amex has an annual fee for the card holder. Some are quite substantial. There had better be value.
vmception 6y ago
which hasn't been true for some time
- rco8786 6y ago
  ? Source for that?

Yes that's what I'm talking about as well. Merchants don't accept them because of their high merchant fees, but AmEx don't have high merchant fees for some flippant reason like to create a 'luxurious image' - they do it to create value for their card holders.

bhupy 6y ago
“Free money” paid for by merchants is a luxury, not a necessity.
- chrisseaton 6y ago
  The consumers overall cover the costs - the merchants don’t just eat the cost.
  - bhupy 6y ago
    Yup, point remains. It’s an externality masquerading as a luxury. It’s also arguably regressive, since the beneficiaries of those rewards tend to be overwhelmingly rich, while the inflated prices are paid for by everybody else.
    - rvnx 6y ago
      It seems like a cashback card then
      - bhupy 6y ago
        Yup, point remains. Cash back cards maintain the same characteristics. Traditional cash back cards are arguably less regressive since it isn’t just the wealthy that have cash back cards. In theory, a broader set of people are beneficiaries of a system that a broad set of consumers pay into via higher prices. AmEx cards OTOH are expensive enough to process that there still exists a broad set of merchants who refuse to process them. For those that do process them, it’s harder to say to what degree the costs are passed on to all buyers. And unlike cashback cards, Amex rewards beneficiaries heavily skew rich.
chinathrow 6y ago
This makes me sad. Card companies create value buy increasing prices to buy the card holders loyalty. I understand that this works but I think it is a form of corruption. Buying your customers loyalty rsp spending...
- wsc981 6y ago
  I am not sure how well this strategy will work out in the long run. Personally I look forward to replace my Amex card with Apple’s card, once available for me. Here in Thailand many shops, hotels don’t accept Amex, so it’s harder to save up points for benefits, effectively reducing the value of the card.
paulcole 6y ago
Nearly every Amex has an annual fee for the card holder. Some are quite substantial. There had better be value.

vmception 6y ago

which hasn't been true for some time

rco8786 6y ago
? Source for that?