To think the new AMEX advert actually hurts small shops rather than helping them?

[WeBuiltThisBuffetOnSausageRoll]

It annoys me every time it's on - their claim that they're supporting small independent shops by encouraging people to shop there instead of the big chain stores.

Firstly, I didn't know that anywhere actually accepted American Express, presumably because they've always been rumoured to charge a significantly higher-percentage merchant's fee than Visa and MasterCard - although this might have changed as I don't recall seeing an "All credit cards accepted except AMEX" sign for quite a long time.

Secondly, I'm not convinced that many people will be persuaded to switch as those who prefer using the big shops tend to do so for a reason (convenience, opening hours, parking, household brands, bigger range, slightly lower prices etc.) and are unlikely to change their long-standing shopping preferences.

I rather suspect that this is aimed at people who already use small shops on a regular basis, but usually pay by cash or debit card; and that sowing the seed of the message that using AMEX 'supports' small shops will make them instead pay by AMEX - and thus cost the shopkeeper a bigger portion of his/her profits - or, if the shop doesn't accept it, complain in their numbers and harass the shop in to considering doing so - which will ultimately hurt them in the long term and/or cause them to have to increase their prices to allow for the reduced margins and therefore put them at an even bigger disadvantage when compared to the superstores.

AIBU or is my cynicism possibly at least slightly justified?

YANBU, when I saw it I thought about how I would happily do my Christmas shopping 'on my local high street' if it was the lovely twinkly 'naice' experience depicted in the advert, full of cosy bookshops run by elderly ladies wearing specs on chains around necks and toyshops with middle class children with noses pressed against the glass gazing at improving wooden toys, instead of the littered and run down parade of depressing chicken shops, bookies and boarded up failed independent ventures, symbolising the death of dreams and inevitable coming of homogenisation and corporation rule that is my actual local high street. I do try and support the surviving independent chemists, grocers and the charity shops in fact but none of them take Amex

I guess they have to advertise somehow however and it's no worse than CocaCola pressing sugary drinks on kids because tis the season, or whatever else goes on in an ad executive's brain, but I agree it's annoying!

Of course, AMEX's ultimate aim is to increase their own presence, they are not a charity.

But in the long run I think it would be better for local independent shops to accept all debit and credit cards, including AMEX, and Apple/Google pay, without fuss or 'you have to spend more than x', and stop worrying about the transaction fees. Fewer and fewer people are carrying cash. We want to pay using contactless for small things and chip & pin for larger purchases.

I walk past my local independent shop and go to the Tesco express because I don't know whether I'm going to pick up enough stuff to meet the arbitrary minimum they insist on for card payments. I do carry some 'emergency' cash but I keep it in my wallet. I don't want to break a £20 and end up with loads of shrapnel unless I really have to.

Handling cash isn't without its costs either, in terms of fuel burnt transporting it around, time wasted counting and organising it, and the security risk of handling it (robbery, fraud, etc).

Quite brave of them, when no-one other than the big corporates takes Amex.

But then, Amex holders don't expect them too either.

Used to work for a Canadian owned company, and they struggled with the idea that amex was not greated with joy around the world :)

Visa has done a similar advert about support local businesses. Pretty clever really, as clearly they don't care where we spend, as long as it's using their card.

Isn’t it a VISA advert?

I assume this is the ad:

They are also crediting Amex users £5 if they spend more than £10 in a small shop that accepts Amex though which might encourage people to use them.

Thanks, Malmi - yes, that's the one I was talking about.

I didn't even notice the 'Spend £10 get £5 back' bit, but that all helps add to customer pester power and the resulting pressure on the shopkeepers to think they have no choice but to comply.

I didn't even notice the 'Spend £10 get £5 back' bit, but that all helps add to customer pester power and the resulting pressure on the shopkeepers to think they have no choice but to comply.

It only applies to shops that already accept the card for this month so I don't see how it results in customer pressure on shops "to comply". It's just an incentive for small shops to accept the Amex card in the future (assuming that they do this again).

I do carry some 'emergency' cash but I keep it in my wallet. I don't want to break a £20 and end up with loads of shrapnel unless I really have to.

Handling cash isn't without its costs either, in terms of fuel burnt transporting it around, time wasted counting and organising it, and the security risk of handling it (robbery, fraud, etc).

It's not like you're going to spend £2 and get £18-worth of pennies, though, is it? Most likely a tenner, a fiver and £2/£1 coins for the most part.

I take your point completely about handling cash for large businesses that turn over tens of thousands of pounds each day, but for smaller shops, it can actually be preferable.

My parents used to own and run a shop, which only accepted payment by cash or cheque (no electric cash register, either - it was quite some time ago!). All takings were diligently recorded and everything went fully through the books for tax purposes, but aside from that, they were charged by the bank for all monies paid in, whatever the method.

Cheques obviously had to be paid in, as would card payments have clearly gone through the bank, had they taken them, but instead of paying cash in to the bank (and the associated fees) and then withdrawing it, once it had been accounted for, they kept back as much cash as we needed to live on and used it for family purchases.

It's a bit of an overreach of cynicism I feel. Of course Amex want the custom but they're promoting the support to small businesses whilst doing so. Nothing sinister about participating in corporate responsibility.

Of course Amex want the custom but they're promoting the support to small businesses whilst doing so

But.... to small businesses that don't (yet) largely accept AMEX?

Is there a list of small shops that accept it? Because as far as i have found, none of my village shops do!

Well as a customer I think it's great that I get £5 back for every £10 spent during December. There's a good many small businesses in my local area participating and I've tried a couple of new places for lunch already and will shop in a few more places that I wouldnt normally have this month so I think it does bring much needed custom into small shops.

dropzone if you put your postcode in to the Amex site a list of participating stores near you is shown. There were a couple of pages of stores within a couple of miles radius of me

Last time I looked it was 8%+ to process an Amex card. rather than the 1.x% for other credit cards. You can't price based on payment method.

I've definitely used shop small before to go in independent stores that I wouldn't otherwise have visited. You can see on the Amex website which stores are included (and lots of restaurants etc too)

It's 3% Amex to 2% visa for processing so not much of a difference anymore

I've got a small business and I'm really happy with the Amex Shop Small promotion. £5 credit on a £10 spend is a great incentive to customers.
As a business it's not that expensive to accept Amex. Less than 2% and not miles more expensive than other credit cards.
Totally agree that small shops should move with the times and accept all forms of payment with no arbitrary minimum.
Judging by the number of customers who ask if we take card payments, small shops must have a really bad rep!

Can someone tell me... who has an Amex?? Why would you, it is not accepted in a lot of places?
Genuinely wondering, maybe I am missing something...

I find it’s unusual for online shops and chains etc not to accept it. I’ve done my Christmas shopping on mine, got bonus air miles and added to my yearly companion ticket (free flight for a companion in the cabin I’m in, return or single)

Thanks XiCi mainly the pubs in my village but nearby town has a few shops on the list

Monday i originally got it as a separate credit card for my work expenses to make it easier to track, the Avios being a nice bonus. Now i use it for all my personal spending, and the other credit card (Mastercard) we have is for "joint spending".

The ad only applies to a set list of small shops. They are rewarding small shops that do take Amex and they are rewarding customers. This isn’t any different to any of the other works they offer to their customers (avivos points, gift cards and lounge access all come to mind). And it’s the same principle as any internal rewards scheme like Tesco club card or collecting stamps at cafe Beto for a free drink. No one is going to go down to their local newsagents waving around an Amex berating the small business owner for not taking it.

@mondayiminlove it gives you a whole bunch of extras like points for the British airways loyalty program and access to American Express airport lounges.

Can someone tell me... who has an Amex??
I have one for everyday spending, because I can earn Avios and I get access to certain airport lounges. I have a 0% Barclaycard credit card for bigger purchases, because the interest rate on the Amex card is extortionate.