What make American Express so different? I've noticed that while Visa and Mastercard are official everywhere, there are

I've noticed that while Visa and Mastercard are official everywhere, there are a handful of retailers who any don't accept or charge a small excise to accept AmEx credit cards. I don't work for them, I'm newly wondering why this is. Amex has lots cards that do not allow a balance carried, and so Amex can't be paid money off the interest. They also provide great customer service. This have to be paid for somehow. The somehow is soaring merchant fees and high cardholder fees.

Amex really be never designed as a credit card. It is a "travel and entertainment" card, designed for big ticket business expense items like airline tickets, hotels and fancy meal with clients.

When your Visa or Mastercard bill comes surrounded by, you only hold to make a minimum expense or pay within full, so your account remains alive (as long as you don't exceed your limit). With American Express, your full balance is due respectively month, regardless of what you owe, if you don't pay surrounded by full, they freeze your account, so businesses don't approaching to take the hit and miss that your American Express account could be frozen and enjoy to wait for their sum.

Answers: Every time a credit card is used at a retailer, retailer has to settle a small percentage of the whole amount (being charged) as commission to credit card company.

For example, if retailer runs a visa card through his system and at hand is 1% commission for the credit card company. Then for a charge of $1000 retailer has to earnings a commission of $10/-

In the case of American Express the commission charge is really giant compared to Visa and MasterCard. As such some retailer do not accept American express to avoid paying better commission fee.

A local retailer (Fry's electronics) once told me that they own to pay around 7% as commission to AMEX (i hold no other way to confirm this)

American Express is the just bank allowed to process American Express. Visa/MC hold licensed processing banks so this allows American Express to enjoy higher interest fees, which after causes the merchant to settle more. Also, American Express requires a minimum monthly amount (which Visa/MC do not). This means that no business how much the Merchant charges to AMEX if they don't get a secure amount then they still discharge a fee. So It is more expensive to process AMEX
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