AMEX: It Doesn't Have To Be A Four-Letter Word                              March 2015
What's the first thing that comes to mind when someone mentions American Express? If you're a cardholder, you probably think of all the points you've racked up making purchases with your AMEX card.  If you're a retailer, "high fees" is likely your first thought (and maybe your second and third as well).
To Offer Or Not Offer?
That's a question retailers have been asking themselves since American Express issued its first credit card in the 1950's. At The Bike Co-op, we're decidedly Pro-AMEX, and here's why:
  1. American Express creates many opportunities to build your business. By accepting AMEX, your business can capitalize on card members that are loyal, proven spenders. These customers are accustomed to putting purchases (especially larger ones) on their AMEX cards to receive the points/rewards that they offer.

  2. AMEX is popular among an affluent clientele. In fact, the average transaction for American Express cards is around $150, while Visa’s is $50 (source- Forbes.com 3/13/2014). Most AMEX customers are shopping primarily with plastic, and in stores that gladly accept their preferred credit card. If you don't offer AMEX, will that customer pay with another card?  Most likely, for that purchase. But you may have put yourself on a loyal cardholder's mental list of stores that don't accept AMEX, running the risk of this customer never returning again.

  3. AMEX supports local businesses through its Shop Small program. With Shop Small and Small Business Saturday, AMEX has literally created a movement encouraging people to shop at small businesses, which millions of customers have embraced nationwide.
We know what you're thinking - "That's all well and good, but I'm the one who still has to pay the higher transaction fee that eats into my margins." But what if you didn't have to pay the rate that you're currently paying for AMEX, which if you're like most bike stores, is anywhere from around 3% to 3.50%? What if we told you that you would pay just 2.45% for AMEX? With our economies of scale, 2.45% is the rate that members of The Bike Cooperative pay for American Express. 
To put that in perspective, many other credit card processing companies are charging an effective rate of well over 2% for Visa and MasterCard. Some of our own members did not accept AMEX prior to joining the Co-op, but once they see what they will save at our rate of 2.45%, they quickly realize that they can't afford not to accept AMEX! 

"The Bike Co-op saves us about $9,000 in operational costs each year by the rate reduction in American Express processing fees. This goes right to the bottom line!”

Joe Vitale
Danzeisen & Quigley
Cherry Hill, NJ
The Bike Cooperative is a member-owned cooperative with a mission of improving the profitability of independent bike retailers, providing members with exclusive product specials and rebates, consumer financing and credit card processing programs, comprehensive advertising services, and training in management and sales. For information on becoming a Co-op member:
670 N. Commercial St. 3rd Floor | Manchester, NH 03101 US
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