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| ▲ | parliament32 a day ago | parent | next [-] | | AMEX was/is the old-school equivalent of this. They would unapologetically ban merchants from accepting AMEX (forever!) after even a handful of complaints/chargebacks. This is also a key part of why you see some shops/restaurants with the "no AMEX" signs on their terminals -- don't be fooled by the "AMEX is too expensive to accept" red-herring, the actual difference for AMEX vs Visa/MC is ~1%[1], really not enough to matter for most businesses. [1] Average brick-and-mortar interchange fees for Visa and MC range 1.85% to 2.6%, AMEX is 2.5% to 3.3%. | | |
| ▲ | greyb a day ago | parent | next [-] | | Anecdotal, but every small business owner I've talked to have said it's because of the 1% difference in fees, even with OptBlue. I've only had 1 business owner ever say it was due to chargebacks, a small tea shop in a Chinatown in Canada. They also don't take Mastercard for the same reason. This is also why American Express launched the Cobalt card in Canada, which had a 5x multiplier for eats, drinks and groceries, and pushed it so hard for years on social media and bus shelters, despite eventually starting to disincentivize it (it was a loss leader/upgrade feeder product for Amex). They wanted to win merchants back with a new generation of hip, social media savvy Amex customers. | |
| ▲ | lotsofpulp a day ago | parent | prev [-] | | AmEx also does not pay the merchant as quick as Visa and MC. And 1% is a significant cut for most retail businesses, as they have low single digit profit margins. |
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| ▲ | lotsofpulp 2 days ago | parent | prev [-] | | Are you sure? I am not referring to Apple’s App Store, I am only referring to the Apple Pay payment mechanism, which presumably is a relationship between the payment processor and Apple. The bank would still be the one dealing with chargeback and chargeback related costs, I do not see why Apple would care or get involved. However, I wonder if the biometric verification of Apple Pay merits a different response to chargebacks where the bank will not simply take the buyer’s side. | | |
| ▲ | evermike 2 days ago | parent [-] | | Sorry, I probably misunderstood and confused things. I was of course talking about the Apple App Store, when users file complaints about the app itself. |
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