American Express is accepted at roughly 99% of U.S. merchants that take credit cards, but a handful of notable holdouts remain, and international acceptance drops off significantly. The gaps mostly come down to one thing: Amex charges merchants more per transaction than Visa or Mastercard, and some businesses decide those fees aren’t worth it.
Why Some Merchants Refuse Amex
Every time you swipe or tap a credit card, the merchant pays a processing fee. For in-store transactions, Visa’s average interchange fee runs about 1.79% plus $0.08, while Mastercard averages 1.93% plus $0.08. American Express averages 2.61% plus $0.08, roughly 40% to 45% more than Visa on a typical sale. For online and phone orders, the gap widens further: Amex averages 3.01% plus $0.25, compared to 2.25% plus $0.25 for Visa.
On a $100 purchase, the difference between Visa and Amex costs the merchant about an extra dollar. That adds up fast for businesses with thin margins, like grocery stores, gas stations, and discount retailers. Some decide the extra cost isn’t justified by the number of Amex-carrying customers who walk through the door.
Notable U.S. Businesses That Don’t Take Amex
Costco is the most prominent example. The warehouse club dropped American Express in 2016 and switched to an exclusive arrangement with Visa. If you shop at Costco, your Amex card won’t work at checkout or on Costco.com.
eBay stopped accepting American Express in August 2024, citing processing costs. Sellers on the platform can no longer receive Amex payments from buyers.
Beyond those large names, the merchants most likely to refuse Amex tend to fall into a few categories:
- Small, independent businesses. Local restaurants, corner shops, and small service providers with tight margins are the most common places you’ll see “No Amex” signs or simply not see the Amex logo at the register.
- Discount and budget retailers. Stores built around low prices and thin profit margins sometimes cut Amex to keep costs down.
- Some medical and dental offices. Smaller practices that process fewer card transactions may not set up Amex acceptance because the volume doesn’t justify the higher fees.
That said, most major national chains, including grocery stores, department stores, home improvement retailers, and fast food restaurants, do accept Amex. The 99% acceptance figure means the holdouts are the exception, not the rule.
Where Amex Falls Short Internationally
The bigger problem with Amex shows up when you travel outside the United States. Visa and Mastercard are accepted by virtually every merchant that takes credit cards worldwide, thanks to massive global processing networks. Amex’s international footprint is smaller, and in many countries the gap is significant.
In parts of Europe, Southeast Asia, and Latin America, you’ll find that many restaurants, transit systems, smaller hotels, and local shops only take Visa or Mastercard. Even in countries with relatively developed card infrastructure, like Germany or Japan, Amex acceptance can be spotty outside tourist-heavy areas and large hotel chains. If you’re planning international travel and rely on an Amex card, carrying a Visa or Mastercard as backup is practically essential.
How to Check Before You Go
American Express offers a merchant locator on its website and app that lets you search for businesses that accept the card in a specific area. This is particularly useful when traveling to a new city or country. You can also simply look for the Amex logo on the payment terminal or at the register entrance before ordering or checking out.
If you carry an Amex as your primary card for rewards, pairing it with a no-annual-fee Visa or Mastercard covers the occasional gap. Use your Amex wherever it’s accepted to earn your rewards, and pull out the backup card at the few places that won’t take it. For domestic spending, you’ll rarely need the backup. For international trips, you’ll use it more often.