Why small shops treat AmEx cards with disdain
So you were at your local mechanic the other day. They had finished the work and you were picking up your car when you pulled out your American Express card. You’d think you tried to pay with a Chuck E. Cheese gift card, because the receptionist made it clear you couldn’t pay that way. What gives? To make a long story short, American Express charges vendors much higher processing fees. Small businesses, such as private mechanic shops, often refuse AmEx to avoid those steep costs.
How AmEx fees stack up
Bankrate broke it down like this: Visa and Mastercard charge the vendor somewhere between 1.15% + $0.05 and 2.5% + $0.10 for each swipe. American Express charges between 1.43% + $0.10 and 3.30% + $0.10. That difference adds up quickly.
Let’s imagine your local mechanic does $10,000 in business a week. They would pay $115–$250 to Visa or Mastercard. American Express would pocket $143–$330.
Why do larger businesses put up with those higher fees? Because the average AmEx purchase is so high. American Express has positioned itself as the premium credit card. It advertises better service, tie-ins, and rewards. But it also charges steep yearly fees that many consumers can’t afford. Its goal is simple: attract wealthier customers. Those customers spend more, and businesses tolerate the highest processing fees in the industry.
Not every owner buys into this approach. Even some large businesses, such as Costco, don’t accept American Express. Their owners are gambling that customers will find another way to pay.
