What Upscale Businesses Should Know About American Express
American Express (Amex) has its own rules for payment acceptance, and knowing them can change how much you pay, how fast you get your money, and what your payment processor thinks of your business.
Unlike Visa or Mastercard, Amex is both a card brand and a network. They control everything about the transaction: the cardholder, issuing the card, and the payment processing. So, accepting Amex isn’t as easy as just saying yes with your processor.
Amex: Direct or Through Your Processor?
Depending on your business and how much you sell, Amex can be:
Handled through your processor: This is common for smaller businesses. Your processor sets it up, and Amex deposits are part of your normal payments.
Set up directly with American Express: This is often a must for businesses with lots of sales or big-ticket items. You’ll need your own SE number (Service Establishment number), and Amex will pay you directly.
While having your processor manage Amex is easier, working with Amex directly gives you more control. You get a direct business with Amex, which often means:
Quicker help and info on disputes
Clearer understanding of your real Amex costs
The ability to use Amex’s business tools, data, and customer info
Fewer extra fees from the processor
Why This Matters for High-End Businesses
If you run a fancy store, restaurant, or service, your Amex customers probably spend the most. They’re loyal, spend more each time, and expect you to take their favorite card.
So, it’s worth the effort to:
Get your own Amex SE number if your processor doesn’t handle it.
Check your Amex discount rate directly with Amex to see if you can save money.
Be sure your POS system is set up right for Amex reporting.
A Key Perk: Direct = Stable
Dealing with Amex directly creates a direct payment business relationship. That’s great if you ever switch processors, POS systems, or grow internationally. Your Amex setup stays with you, so you don’t have to start over.
The Bottom Line
Amex might seem different from Visa and Mastercard but it’s something you should know about, especially if you have upscale customers.
Whether you apply through your processor or directly with Amex, the main thing is to be sure you’re set up correctly for your sales, business type, and customers.
At PlutosPay, we help businesses look at both choices, handle Amex setup, and keep your reconciliation, deposits, and reporting in order, no matter how you’re set up.