Businesses around the world accept payments on American Express cards, similar to payments processed by Visa, Mastercard, and Discover. However, unlike Visa and Mastercard, American Express is both a card issuer and an acquiring bank, so it receives revenue from cardholders and businesses that accept their cards.
Alternate name: Amex
American Express processes transactions made with its logo-bearing cards, including The Platinum Card from American Express, the Blue Cash Everyday Card from American Express, and the Delta Skymiles Blue Card from American Express.
How Does American Express Work?
American Express is most known for its credit and charge cards, but the global payments company also offers merchant services and operates a card network. American Express cards are accepted at 12.2 million businesses in the U.S., according to a February 2022 Nilson Report on the industry. By comparison, Visa and Mastercard are accepted at 12.4 businesses, and 12.2 million businesses accept Discover. Globally, Visa and Mastercard have a stronger payment footprint, with acceptance at 80 million businesses around the world, according to a December 2021 Nilson Report. Discover, which also issues and processes its own cards, is accepted at 61 million businesses. American Express is accepted at 60 million businesses globally.
American Express Businesses
Card Issuing American Express offers a variety of card products to consumers and businesses. Its card products offer rewards, benefits, and experiences to attract new customers. For example, cardholders can earn cash-back and loyalty rewards, access airport lounges, and receive travel insurance coverage depending on the card. Merchant Acquiring Businesses work with American Express to establish a merchant account and begin accepting Amex credit cards. In addition to working with businesses, American Express also partners with other acquiring companies and payment aggregators to make its cards accessible. Card Network American Express partners with other banks and financial institutions licensing the brand to offer its own credit cards. For example, its partners in more than 103 countries can launch credits to accept payments in their local currency.
Strategic Partnerships
American Express works with various partners to provide additional benefits and services. Through its partnerships, American Express improves customer reach and provides value to cardholders through co-branded credit card offerings, expanded options for redeeming rewards, or additional credit card perks. Current partnerships include:
Types of American Express Cards
American Express issues personal, business, and corporate credit and charge cards in the following broad categories.
Cash Back
Purchases on American Express cash-back consumer credit cards earn between 1% to 6%. Cash rewards can be redeemed as a statement credit. Higher-earning rewards cards come with an annual fee.
Travel
Travel credit and charge cards earn rewards that can be redeemed for travel, flights, and hotel stays. Co-branded travel credit cards, such as airline and hotel rewards cards, earn rewards in the brand’s loyalty program. For example, purchases on Delta SkyMiles American Express cards earn miles that cardholders can use toward Delta flights and upgrades. American Express travel credit card annual fees can be as high as $695, with higher-fee cards offering more rewards and perks.
