What American Express Charges Merchants to Accept Amex Cards

American Express charges merchants between 1.58% and 3.5% of each transaction, depending on the card type and merchant category

American Express does not publish a single merchant fee. Instead, Amex sets rates based on what card the customer uses (a basic Amex card costs less to process than a premium rewards card) and what business you run. A coffee shop pays a different rate than a hotel, which pays a different rate than an online retailer. The rates also vary by how you process the payment — in person, online, or by phone.

These fees are called interchange rates or discount rates. They are deducted from the payment before the money reaches your bank account. Unlike Visa and Mastercard, which set the rates and let banks and processors pass them through, Amex is both the card issuer and the payment network, so it negotiates rates directly with merchants or their processors.

Rates change periodically. Amex typically announces changes in advance, but the exact timing and new percentages depend on market conditions and your merchant agreement. Your processor or acquiring bank can tell you your current rate for each card type you accept.

Key Takeaways

• Amex merchant fees range from roughly 1.58% to 3.5% per transaction and vary by card type, industry, and how the payment is processed.
• Premium Amex cards (like Platinum or Centurion) carry higher merchant fees than basic cards because they offer more rewards to cardholders.
• Your actual rate depends on your merchant category code, sales volume, and the terms your processor negotiated with Amex.
• Amex fees are higher than Visa and Mastercard rates in most industries, which is why some smaller merchants do not accept Amex.

How Amex sets rates by card type

A customer paying with an American Express Green Card costs you less than one paying with an Amex Platinum Card. The difference is that Platinum cardholders earn more rewards points per dollar spent, and Amex funds those rewards through higher merchant fees. Premium business cards and corporate cards also carry higher rates.

Amex publishes general rate ranges but does not post the exact fee for each card in each industry. Your processor receives the detailed rate table and applies the correct rate to each transaction based on the card presented. If you process through a payment processor like Square, Stripe, or your bank's merchant services, they can show you a breakdown of what Amex charges for each card type you accept.

How merchant category affects your rate

Amex assigns every business a merchant category code (MCC) based on what you sell or the service you provide. Restaurants, gas stations, airlines, and online retailers each have different codes. Amex uses your MCC to determine your base rate.

Certain categories are considered higher-risk or higher-cost to process. Airlines and hotels, for example, often pay higher rates because chargebacks and refunds are more common. A small retail store might pay a lower rate than a travel agency. Your processor can tell you what MCC Amex assigned to your business and whether you can request a review if you believe it is incorrect.

Differences between in-person, online, and phone payments

Amex charges different rates depending on how the transaction happens. In-person payments (card present, swiped or tapped) usually have the lowest rate because fraud risk is lower. Online payments (card not present) cost more because the merchant cannot verify the card is genuine. Phone orders fall somewhere in between.

If you use a payment terminal that reads the chip or magnetic stripe, Amex knows the card was physically present and applies the lower rate. If a customer enters their card number on your website, Amex applies the card-not-present rate. This is why some merchants encourage customers to pay in person or use digital wallets — the rates are better.

Why Amex rates are higher than Visa and Mastercard

In most industries, Amex merchant fees run 0.5% to 1% higher than Visa or Mastercard. This happens because Amex cardholders tend to spend more per transaction and carry higher balances, so Amex can afford to offer them richer rewards. The merchant pays for those rewards through the higher fee.

Amex also operates differently from Visa and Mastercard. Visa and Mastercard are networks that banks use to issue cards; Amex issues its own cards and runs the network. This means Amex has more control over rates but also bears more risk. Some merchants choose not to accept Amex because the fee cuts too deeply into their profit margin, especially in low-margin businesses like grocery stores or gas stations.

How to find out what you are paying

Your merchant services agreement or your processor's monthly statement should show your Amex rate. If you use a payment processor like Square, Stripe, PayPal, or Toast, log into your account and look for the pricing or rates section. Most processors break down fees by card network and card type.

If you do not see the rate clearly listed, contact your processor or acquiring bank directly. Ask for your current Amex interchange rate and whether it varies by card type. You can also ask whether your rate is negotiable based on your sales volume or processing history. Larger merchants sometimes find lower rates through negotiation.

Frequently Asked Questions

Can I negotiate my Amex merchant fee?

Larger merchants with high sales volume sometimes negotiate lower rates with Amex or their processor. Small businesses typically cannot negotiate directly with Amex, but you can shop around for processors — different payment processors may offer different rates or bundled pricing that makes Amex more affordable.

Do I have to accept American Express?

No. You can choose which card networks to accept. Many small merchants accept Visa and Mastercard but not Amex because the fees are higher. However, refusing Amex means losing sales from customers who only carry that card. The decision depends on your profit margin and customer base.

When do Amex rates change?

Amex typically announces rate changes a few months in advance. The exact timing varies. Your processor or acquiring bank will notify you of any changes to your rates. You can also contact Amex directly or check your processor's website for announcements about upcoming changes.

Why is my Amex rate different from another merchant's rate?

Your rate depends on your merchant category code, how you process payments, your sales volume, and your processor's agreement with Amex. Two businesses in different industries or using different processors will have different rates, even if they both accept Amex.

Does Amex charge fees for declined transactions?

No. Amex only charges the merchant fee when a transaction is approved and the payment goes through. Declined transactions do not incur an Amex fee, though your processor may charge a small fee for processing the attempt.