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You could word this as "AmEx protects its customers by ensuring stores cannot tack on an AmEx surcharge" and it would be exactly as true as the way you stated i
by listenallyall 5y ago
You could word this as "AmEx protects its customers by ensuring stores cannot tack on an AmEx surcharge" and it would be exactly as true as the way you stated it. Two sides to every story, and all that.
- aidenn0 5y agoExcept cardholders are not the same thing as customers. AmEx makes most of its money from merchants not cardholders. AmEx attracts cardholders with low fees and perks, and leverages the resultant large base of cardholders to force its customers (the merchants) to pay higher transaction fees.
- ceejayoz 5y agoLow fees? Amex? They do make about half their revenue off swipes, but I wouldn't describe Amex as low fee to cardholders. Their flagship card has an annual fee of $695.
- aidenn0 5y agoThat's relatively low fee for a membership-perks charge card. They also offer zero annual fee credit cards.
- ceejayoz 5y agoPretty much every lender offers some zero-fee cards, and Amex is pretty unusual in having charge cards at all. Amex relies more heavily on annual fees than their competitors in the space - Chase, Citi, Wells Fargo, Capital One... What lender are you thinking of that makes Amex look low-fee?
- aidenn0 5y agoDiners club used to be more. They got sold for parts though
- listenallyall 5y agoIf the deal is so awful for the merchants, they can choose not to accept AmEx cards at all. Nobody is "forced." Costco switched to Visa.