Why Companies Hate American Express

To be honest with I’ve never had American express card, but I’ve always known that the people that have these cards, tend to be fancies than most. Aka, a lot of marketing made me think, that having one of these cards means that you are rich.
Which is funny, because when you think about its like, having the options to buy something on credit and pay an annual fee must mean you are rich lol. Makes no sense

But I have good news with my credit score of 766 which I wish was 769 lol and my income, I have been giving amazing approval odds of getting the American Express Platinum card, meaning I can finally look rich guys. And the fee is only $695 dollars a year.

But that’s another video for another day, my question has always been, why is that boring Tommy can pay anywhere with his Visa, but a lot of these folks won’t have their payment method accepted.

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1. The answer is Simple

-Visa, master card, are payment processing companies, meaning they make money on transactions and they have a lot of them

-However they are not a bank, so they don’t make money on fees, interest and the deposits of customers

-While bank of America cards have been used for a very long time as charge cards, meaning they get paid in full each month ( So the money is made on the Fee, so they tend to charge merchants a bigger fee to make more money )

Now you might be thinking Tommy, this must be a lot of money:

-The answer is Visa and master card charge about 1.15-2.5%

-And Amex charges about 1.43%-3.3% on average, you may here 2.5-3.5 but that’s bias

-So the answer is simple, businesses want more money in their pockets, and the amount of people with amex is very small, and the people that do have amex usually have another payment method anyways

For example:

-Amex has about 121Million cards in circulation, with an average spending of 20k according to my trusted source at google ( that means I googled it )

-While there are 1.8 billion visa cards in circulation and 2.89 master cards

-I mean do you understand what I mean

2. Changes are Happening though

-You see the cool thing about Amex is that it makes sense for their customer based

-Which is people that spend money

-So if you pay $700 a year you get a lot of benefits

But all these benefits have one thing in Common:

You have to spend money to make money

Now here is the News that I’ve heard and I noticed

-American express use to me a charge card but now they are allowing customers to pay overtime with a limit ofcorse for a fee

-Amreican express is planning to lower their merchant fee

-And American express is accepted still in a lot of places about 10.6 million places

3. My advice is this

-Use cash, be careful with credit

-I don’t have an American express card

-Warren buffet who’s an owners pays with cash 99% of the time ( that should tell you something )

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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