American Express, What's The Difference?

[Jennykenny]

Any advantages in having an American Express card as opposed to a MasterCard credit card or a Visa debit card?
Why won't done shops accept it?
Can it be used as a debit card to pay off a credit card bill??

[lady-janine]

as I understand it you have to pay money into an amex account each month and then you are allowed to use the card to that limit. I could be wrong.

[Jennykenny]

Just got the card the other day but they haven't asked me for any money to be paid in.
I know that I have to pay off the entire amount each month but what else?

[factor-fiction]

I think it may be that American Express take a larger fee compared to other cards

[VHG]

Don't get or use an American Express card.

They do take a larger fee from the shop/hotel etc than MasterCard so shops and other places don't like using them.

Also they are accepted in far fewer places than MasterCard etc.

I had an AMEX card from my company a few years ago (my company signed a deal with AMEX for everyone to have a credit card).

But they were so unpopular with employees that soon the company stopped using them and went to another company.

[dzug2]

One reason for getting one is that they give higher benefits (eg more cashback) than many other cards. With some versions of the card anyway

Otherwise they are just a standard credit card - no different from your point of view. You don't HAVE to pay off each month but will get charged interest if you don't

[factor-fiction]

I took a n Am Ex card out once as I was attracted by a 6% cashback offer for several months provided I spend £x a month- but I found it so difficult to find anyone to accept it that I just cut it up and closed the account

[jno]

I've got one (because I get BA airmiles with it). I suppose shops refuse to take it about 10% of the time, because as others have said Amex charge shopkeepers more than Visa and Mastercard do. Apart from that, I've found no difference at all, it's just another credit card.

I don't know about things like the interest rates they charge, though. Also, I don't think you have to pay if off in full each month, it's just that you pay interest if you don't.

[Peter Pedant]

The advantage with AmEx is that you save money
because so many businesses refuse it

( so you cant spend - see ? )

[Jennykenny]

Thanks to all.
Jno, that's the main reason I got it.

[scooping]

Businesses don't like Amex coz they charge a higher rate than other cards. They also don't like Amex in that the company defaults on backing their guarantee more often than other cards and because Amex is perceived to be less stringent in granting credit to its users than other cards.

[andy-hughes]

The only benefit for using Am Ex is if you travel abroad a lot and don;t want to mess around with currency changes.

So for frequently travelling business people who'se companies pay off their card monthly, it's a simpler way to travel.

For the 'average' customer, the benefits are limited, I would go with a high street bank card - most of them are falling over themselves to offer interest-free deals to get you into their system.

[ladybirder]

That's not the only benefit Andy. I get 1% cash back on my Amex but only 0.5% on my other cash back card.
I do pay my balance off in full every month though but I don't know if I have to. As I do most of my food shopping at Waitrose I'm lucky that they take it. Amex do so many different cards with different rules for each one as can be seen on their website.

[jaynethepain]

We've got one because of the Virgin air miles and use it like any other credit card. They also provide you with a Visa card for those establishments that don't accept Amex. You just get less air miles if you use the Visa card. To be honest though, for most purchases - Sainsburys, Tesco, John Lewis, hotel chains, amazon etc - the major chains accept it and everywhere (mainly) in the USA.

[spudqueen]

As far as I'm aware American Express is a charge card and the balance has to be paid off each month. With a credit card you can of course take longer to pay it back. Many places however do not take AmEx, including the Post office.