What Having My AMEX Turned Away Taught Me

If you're an American Express cardholder, then you know how frustrating it is to be told an establishment doesn't take American Express.

It's never a pleasant thing to have your preferred form a payment turned away, but I'm surprised by the visceral reaction so many AMEX holders feel in this situation. I used to grumble if a place didn't take my Visa. But now when my AMEX is turned away I make a vow to never return to that store again, except in dire need.

My reaction was so strong this time, that I even posed the question on Twitter about whether I was being a brand snob or was justified in my response. And, of course, the usual divided opinion ensued. But clearly the difference came down to this: most credit cards are out to be the friend of the business, but American Express is out to be the friend of the consumer.

AMEX is a frustrating card company for businesses to deal with. I heard stories about higher fees and excessive paperwork and adversarial relationships with vendors. It's not a surprise that many retailers skip them. Their process is complicated and they take double the fees of the other cards.

But on the other side of the fence is the fact that American Express has customer service second to none in the card industry. Cardholders are members and we feel just a little safer and more secure using our AMEX cards. We are loyal to the brand. And in many cases, that loyalty to the card brand transcends our loyalty to the store's brand.

So the question becomes, is the retailer gaining immediate peace-of-mind at the price of future sales when they turn away an American Express card?

I ranted a bit on this subject in my latest AudioBoo. And it went to the broader subject of the penchant in business to settle on the easiest operational solution, rather than pursuing a more embracing relationship with the customer. Have a listen then post your thoughts in the comments. I'd love to continue this debate.