Why Is American Express Bad? Low Acceptance & More (2024)

FAQs

Why Is American Express Bad? Low Acceptance & More? ›

It has to do with how credit card companies charge us. American Express charges a higher interchange fee. to its merchants like us, and that's the fee that we pay to accept.

That's because American Express typically charges higher merchant fees than other credit card networks. In other words: It's more cost-efficient for many businesses (especially low-margin ones) to take Visa or Mastercard instead.

Historically, American Express charged higher fees than their competitors, making their cards less attractive to merchants. Merchant funding was also a slow and painful process – in 2006 it took a full three to five business days for merchants to receive money from American Express transactions!

There can be many reasons why your American Express credit card application was denied. Most commonly, applications get denied because of a low credit score, insufficient income, or too much debt.

It has to do with how credit card companies charge us. American Express charges a higher interchange fee. to its merchants like us, and that's the fee that we pay to accept.

Places Where American Express is Not Accepted: Cuba, Sudan, South Sudan, Iran, Syria. Major Retailers That Accept American Express: Amazon, IKEA, Sears, Target, Walmart, Lowe's, Apple, Best Buy, Staples, CVS. Major Retailers That Don't Accept American Express: Costco, small non-chain stores/restaurants.

Allegations included that American Express made misleading statements regarding signup bonuses, charged unlawful late fees, discriminated against applicants due to age, and failed to report consumer complaints to regulators.

American Express is one of the leading card issuers in the United States. It's known for its top-notch customer service and some of the best rewards available. From ultra-elite business travel cards to everyday rewards, American Express has credit cards that are a good choice for many different types of cardholders.

It is hard to get an American Express credit card because all cards offered by American Express require good credit or better for approval, which may be out of reach for the average consumer. Applicants need a 700 credit score and a steady income to have good approval odds for an American Express credit card.

Why is American Express being sued? ›

American Express finds itself embroiled in a legal battle as a proposed class action lawsuit, filed in Rhode Island federal court, alleges the company of overcharging thousands of US merchants for credit and debit card fees on consumer transactions.

The bottom line: Business Insider's personal finance team compared American Express National Bank (Member FDIC) to the best banks and found it to be standard for bank accounts and personal loans. However, when it comes to credit cards it's an industry leader, offering some of the best credit cards on the market.

The different fees often make or break a deal for a merchant. This is why many merchants, especially small businesses, don't accept American Express. American Express' interchange fee is just too high. Providers like Visa and Mastercard charge between 1.15% and 2.5%, while Amex charges merchants between 1.43% and 3.3%.

A low credit score, a history of late payments, and high debt are common reasons for application denial. Credit card reconsideration doesn't guarantee approval, but you might be able to qualify for that same card in the future.

Amex's approach is tailored towards individuals who actively use their cards for substantial spending and promptly settle their balances. The allure lies in premium benefits, ranging from airport privileges to everyday perks like Walmart Plus memberships or Uber cash.

Yes, it's hard to get an American Express card because you will need a good or excellent credit score for approval, along with enough income for monthly bill payments. American Express cards are generally considered some of the most exclusive credit cards on the market.

Since Costco has an exclusive contract with Visa, shoppers can't use credit cards backed by the other three main networks — American Express, Mastercard and Discover — at Costco warehouses. However, you can pay with Mastercard for purchases made at Costco.com and the Costco app.

American Express is one of the leading card issuers in the United States. It's known for its top-notch customer service and some of the best rewards available. From ultra-elite business travel cards to everyday rewards, American Express has credit cards that are a good choice for many different types of cardholders.