Why Many Retailers in Maine Don’t Accept American Express Cards

There's a good reason why consumers need to choose which credit card they carry in their wallet. From lower interest rates to increased rewards, there's a lot of factors when deciding on a credit card. But one key reason? Some credit cards are not accepted at small and large retailers in America, including many in Maine.

The most popular credit card company that falls under this umbrella is American Express. There's a handful of major companies that won't accept your AmEx card. For instance, the newly opened Costco in Scarborough does not accept American Express payments. Why?

According to Readers Digest, it all centers around money. Any time you use a credit card, there's an understanding between the company and the business that there will be a fee for the transaction.

Visa and Mastercard charge the smallest transaction fees while American Express has one of the most expensive, often charging businesses double what Visa and Mastercard do per transaction.

This has led some major retailers like Costco to avoid American Express altogether. AmEx isn't alone, either. Discover cards are often not accepted at retailers because like American Express, their transaction fees tend to be higher than Visa and Mastercard.

Most major retailers, hotels, and online businesses do accept American Express but you may run into more trouble at mom and pop retailers. Those small businesses have tighter margins, and small transactions on American Express cards may not be worth it in the long run.

Small businesses are often faced with the dilemma of accepting higher transaction fees on a less popular credit card or just not accepting that credit card altogether.