Why more stores are about to accept American Express
American Express and CommBank’s new partnership aims to encourage more small businesses to offer Amex payments.
While American Express is accepted by many large merchants, it’s still not uncommon to see a “we don’t accept Amex” sign at a local cafe or restaurant. A new union between Amex and Commonwealth Bank could help change that, though.
Amex has been included in CommBank’s “Simple Merchant Plans”, which means that small businesses no longer need to negotiate with both the bank and card provider pricing for merchant point of sale transactions.
Announced on Monday, CommBank and Amex expect that the new arrangement will encourage more small businesses to offer American Express card payments and provide Aussie cardholders with greater choice.
In turn, this also broadens the scope for potential customers for small businesses. According to American Express, on average their customers spend 92% more than other credit card users.
“Our partnership with Commonwealth Bank will make it easier for Australian small businesses to accept American Express, attracting these high-value customers,” said Daniel Parsons, American Express vice president merchant services.
Many businesses across Australia negotiate separate pricing packages with American Express to offer the payment option for their existing merchant plans with their bank. However, CommBank claims that it’s one of the only local banks that offers a single package for all payment options, which allows for partnerships like the one with Amex.