Why Don’t Big Banks Push American Express Cards Anymore? (Reddit Users Explain)
Have you ever tried to use your Amex card and been told, “Sorry, we don’t take American Express”? You’re not alone. A recent Reddit thread blew up with users asking why banks like Chase and Citi rarely issue Amex cards anymore. It’s a big deal because credit cards shape how we spend, travel, and earn rewards. Let’s unpack what hundreds of Reddit users and experts had to say.
The Original Post: Banks Dropping Amex
One Reddit user kicked things off by noticing a trend: big banks are favoring Visa and Mastercard over Amex. They asked: “Is it because Amex costs more? Or do customers just not want them?” Others piled in with stories. One person said their bank stopped offering Amex cards completely. Another shared how their Amex application got denied even with great credit. The big question: Why are banks ditching Amex?
What Reddit Taught Us About Amex and Banks
🛑 1. High Fees Scare Merchants (and Banks)
Amex charges stores way more to accept their cards than Visa or Mastercard. Here’s the breakdown:
- Amex fees: 1.43%–3.3% per transaction
- Visa/Mastercard: 1.15%–2.5% per transaction
Reddit users explained this simply: Stores hate Amex fees. If a store won’t take Amex, customers won’t use it. Then banks stop issuing it. One commenter put it bluntly: Banks want cards people can use everywhere. Amex isn’t that. Small businesses especially avoid Amex due to these costs.
🌍 2. Amex Isn’t Accepted Worldwide
Travelers on Reddit shared stories:
“My Amex card got rejected at a bakery in Paris. Thank god I had a Visa backup!”
Data backs this up:
- Amex is accepted in under 30% of European shops
- In Japan, street vendors often say no to Amex
- It’s blocked in countries like Cuba and Iran
Banks prefer networks with global reach. As one user said: Why issue a card that’s useless abroad?
💳 3. Amex’s “Closed Network” Drives Up Costs
Unlike Visa or Mastercard, Amex runs its own payment system. That means:
- They control everything (issuing cards, processing payments)
- No third-party banks help lower costs
A Reddit user compared it to “a luxury boutique vs. a supermarket.” Amex’s model is pricier, so banks make less money per card.
🤔 4. Mixed Reviews on Customer Service
Reddit debates got spicy:
- Love: “Amex refunded me $3,000 instantly when a store went bankrupt!”
- Hate: “Amex refused my chargeback after a scam. I canceled my card.”
Banks notice this inconsistency. If service isn’t reliably great, they push other cards.
Can Amex Fix This? Reddit Weighs In
Amex isn’t doomed. Reddit users shared smart workarounds:
- Small Business Program: Amex does offer lower fees (called “OptBlue”) for small stores. But big retailers like Costco still avoid them .
- Co-Branded Cards: Some banks issue Amex only for special cards (e.g., Hilton rewards). These target loyal customers who don’t mind limited acceptance .
- The “Rich Cardholder” Strategy: Amex focuses on wealthy users who spend big. One user joked: “If you have a Platinum card, you’re not shopping at gas stations anyway.” .
Key Takeaways from the Reddit Thread
- Amex costs stores more, so fewer places accept it.
- Travelers need backup cards, Amex doesn’t work everywhere.
- Banks profit less from Amex vs. Visa/Mastercard.
- Use Amex for big purchases or travel, but always carry a Visa/MC too.
As one Redditor summed up: “Amex is like a fancy sports car. Great for special trips, but you wouldn’t drive it every day.”
Meta Description: Why don’t banks use American Express? Reddit reveals how high fees, poor global acceptance, and Amex’s closed network pushed banks toward Visa/Mastercard.
What’s your experience with Amex? Have you switched to Visa/Mastercard? Share below!
FAQ: Your American Express Questions, Answered
Q: Why do small businesses hate Amex?
A: Their fees are 1–2% higher than other cards. For a small shop, that adds up fast .
Q: Is Amex accepted in Europe?
A: Barely! Only 1–2% of shops in most EU countries take it. Always bring a backup card .
Q: Should I get an Amex card?
A: Only if you travel a lot, spend heavily, and want premium rewards. For everyday use, Visa/Mastercard are simpler .
Q: Can I have both Amex and Visa cards?
A: Yes! Many Reddit users do this. Use Amex for big buys/travel, Visa for everything else .
