Is American Express Accepted Everywhere?
Uncover the real scope of American Express card acceptance. Understand its widespread use, common limitations, and practical payment alternatives.
American Express cards are often perceived as less widely accepted than other payment methods. This perception stems from historical differences in acceptance rates compared to networks like Visa and Mastercard. While American Express has significantly expanded its merchant network, some nuances still exist regarding consistent use. This article clarifies the current landscape of American Express acceptance.
Where American Express is Accepted
American Express has significantly expanded its acceptance across the United States. Today, American Express states its cards are accepted by 99% of U.S. merchants that take credit cards. This broad acceptance includes most major national and international retailers, large online platforms, and travel and entertainment businesses. Cardholders can use their American Express cards at airlines, hotels, and car rental agencies.
The company invested in initiatives like the OptBlue program, allowing smaller businesses to accept American Express cards through third-party payment processors at more competitive rates. This program increased American Express acceptance at many restaurants, cafes, and independent businesses. While international acceptance still varies, within the U.S., the card is largely on par with Visa and Mastercard for everyday transactions.
Reasons for Limited Acceptance
Despite American Express’s network expansion efforts, some merchants, particularly smaller ones, may still choose not to accept these cards. The primary reason for this limited acceptance stems from merchant processing fees. Historically, American Express has charged higher interchange or discount fees to merchants compared to Visa or Mastercard. These fees, typically ranging from 1.43% plus $0.10 to 3.30% plus $0.10 per transaction for American Express, can be higher than the 1.15% plus $0.05 to 2.5% plus $0.10 with Visa and Mastercard.
This difference in fees, even if seemingly small, can significantly impact a business’s profit margins, especially for those with tight financial constraints. American Express operates a “closed-loop” network, acting as both the card issuer and the payment network. In contrast, Visa and Mastercard operate “open-loop” systems, relying on third-party banks to issue cards and manage customer relationships, which leads to a different fee structure. This integrated model means American Express relies more heavily on merchant fees for revenue, as many popular products are charge cards where cardholders pay balances in full.
Some merchants also perceive the American Express cardholder base as smaller or different from those using Visa or Mastercard. Although American Express has increased its market share, Visa and Mastercard still collectively hold a substantial share of the U.S. credit card transaction volume. For small businesses with limited resources, prioritizing acceptance of the most widely used networks can be a practical decision to manage costs and streamline operations.
Alternative Payment Options
Because American Express might not be universally accepted, especially when traveling internationally or dealing with very small businesses, it is wise to have alternative payment methods. A straightforward solution is to carry a backup credit or debit card from a different network, such as Visa or Mastercard. These networks have broader global acceptance and serve as reliable alternatives when American Express is not an option.
Maintaining some cash on hand can also be beneficial, particularly for very small vendors, local markets, or where electronic payment systems might be unavailable. Mobile payment applications also offer flexibility. Popular apps like Apple Pay, Google Pay, PayPal, and Venmo allow users to link various card types, including Visa, Mastercard, and American Express. These mobile wallets can sometimes be accepted even if a physical American Express card is not, provided the merchant’s terminal supports contactless payments. Before a significant purchase, especially from a new or unfamiliar merchant, inquire about accepted payment methods.