American Express (Amex) is ‘expanding’ its agreements with payment providers, making acceptance easier for small shops and potentially resulting in Amex having the same fees as other card networks.

When asked about recent reductions in Amex transaction fees paid by small shops, Dan Edelman, vice president and general manager of UK merchant services, told Better Retailing: “I can’t comment on specific rates, however the small businesses we have direct relationships with benefit from a dedicated single rate, with no hidden fees. We are also expanding our relationships with several payment providers which is making it simpler for small businesses to accept Amex. These providers set the rate for small businesses, and that may be one flat fee for accepting cards from all different networks.”

Edelmen added: “We’ve made significant strides to ensure our pricing is competitive for merchants. Beyond pricing, accepting Amex delivers real value to both consumers and retailers. Our Cardmembers spend nearly four times more annually than the average credit card user.”

American Express expands rollout across stores

The strategy is paying off, with a 67% rise in small shops accepting Amex in the past three years. Edelman claimed Amex is focused on convenience stores because customers “tell us they want to use their card for these types of purchases”. 

He said Amex users have “higher spending power”, 64% of users are more loyal to shops accepting the card and 52% tend to spend more in stores with Amex’s free acceptance signs and stickers. 

As part of its push for more local shops to accept Amex, the company has invested in incentives that reward both shop owners and their customers. The vice president explained: “Owners of independent businesses see the added value Amex brings in attracting new and loyal customers through marketing initiatives like our Shop Small campaign, which encourages our Cardmembers to support small businesses all year round. Last year, American Express launched Champion Small, a new initiative inviting Cardmembers to champion their favourite small businesses by nominating them for the chance to win one of ten £10,000 business grants.

As founder and principal supporter of Small Business Saturday for well over a decade, we’re committed to championing small businesses and encouraging consumers to support small merchants all year round. Small Business Saturday is the UK’s most successful small business campaign, engaging millions of shoppers every year as well as benefitting from widespread support from Government, MPs, charities and local communities.”

Not only is it easier for stores to accept Amex, the company said it is easier for shop owners to spend with Amex too, through rising acceptance rates in cash and carries. Edelman said: “A growing number of wholesalers including Parfetts, Costco and United Wholesale now accept Amex payments.” 

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