bakedjake - 4:00 pm on Feb 3, 2012 (gmt 0)
So we stopped taking the card. Apparently lots of other merchants stopped too, because whenever anyone tries to pay with an Amex card and we tell them we don't take it, they usually say something like, "Man, nobody takes Amex anymore. Wonder why that is?"
As a merchant, my amex customers spend on average 20% more than the other three. I'm not sure if it's the case for you, but you want to be careful. Most of our amex customers are on charge (as opposed to credit) products and that usually indicates a higher value customer. Don't miss the forest for the trees.
Also, don't forget that your customers have a choice too. As a cardholder, I'll always prefer a merchant that takes amex over one that doesn't. It's only if there are no alternatives available will I whip out the Visa.
I was wondering, does anyone know how this works? Does Amex offer merchants promotions where it allows the merchant to waive these fees because Amex is reimbursing them?
Yes, there are marketing deals Amex does with certain merchants. I've seen them give co-marketing dollars and statement credits depending on the deal. Typically it's with bigger merchants, but I've seen a couple smaller ones. Call merchant services and tell them you're interested, and they'll point you in the right direction.