Several of our forum members have shared the news that as of December 1st, Shoppers Drug Mart will not be accepting American Express cards for any payments.
This news never surprises me, AMEX fees for retailers are generally higher than VISA or Mastercard fees so it cuts into their profits.
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man that stinks, I love using my amex there…sigh
no biggy. the amount of receipt stores get： debit –> Visa –> a lot less Mastercard –> a few Amex.
It’s also because of a lot of credit card fraud off of Amex cards – their chips don’t work at the SDM machines.
Amex? Really? Does anyone actually use this card in Canada? Just don’t tell me that it’s nestled in your wallet next to a Discover card.
They have a very good company card so lots of companies still use them, plus their points are often higher (paid for by the higher fees). At work we do get people using them. Saying that, we have a Discover card at work still hahaha (our main card is Mastercard though)
I use my AMEX for everything – I get 1 aeroplan point / dollar spent plus bonuses. Most places take them – Loblaws doesn’t, but it is a great card with lots of benefits.
That is disappointing to hear although not that surprising to hear. Seems that Amex cards are being accepted less and less.
Our business credit card only uses AMEX. I guess AMEX maintains its affluence only because of the companies that choose to accept it, which in turn gives AMEX a greater wealth customer presence, IMO.
Costco is an exclusive AMEX card retailer, and THAT company is focused beyond just cheap sales. The major grocery stores that still accept AMEX Sobeys, Metro, Wal-Mart.
In the U.S., AMEX is accepted everywhere.
SDM is excluding a huge chunk of their wealthier clientele, both potential and current. Their perfume and cosmetics counters tries to cater to the affluent. Their loss!
I love AMEX.
SDM has seen an up-tick of fraud on amex cards, people will come in use an amex card to buy visa or mastercard pre-paid cards. don’t blame them for sending amex packing. Amex is a pricy card to take retailers will pay between 3-4% on their volume when they pay 1.75 to 2.5% on visa and mastercard.
Fraud on AMEX cards is just an excuse because of the CHIP cards. The CHIP card software on SDM machines need to be updated with the newer software version, which VISA and MC have also been late to update.
So, rather than update the CHIP software, they turf out AMEX. So, when SDM eventually pays to upgrade the software, they’ve also lost so many customers.
No big deal AMEX fans! Just spend your money elsewhere….REXALL or Guardian!
Attractive Customer Base:
American Express has affluent consumer cardholders and is a leader in corporate cards, and cards for small business owners. Each of these groups of customers is attractive to retailers because on average they spend more and buy higher margin products than the average consumer that walks in the door.
High Average Spending:
Average annual spending on some of American Express’s high end products are several times the average annual spending on a credit card in the US.
Premium Economics:
Attractive customers and high average spending allows American Express to demand premium fees from merchants that accept American Express cards. T Corporate and Small Business cards are particularly important to American Express in its relationship with merchants. Cardholders with these cards are likely to insist that a merchant accept American Express because it can be much more difficult for them to get expenses reimbursed.
I really prefer my Amex–and even food basics accepts it! I have a no fee card and with the points I get gift cards for Home Depot, over the years I have paid for washing machine and a freezer with gift cards from Amex points.
And as for the merchant fees–each merchant can ‘bargain’ with their rep to get lower fees– my business has lower fees on Amex than visa or mc. And, as of the last quarter merchant report, MasterCard had a higher percentage of fraud than any other card accepted in Canada.
Wrong. emailed head office. they stated they still take Amex
This will actually affect my shopping there. Oh well their loss.
When I worked for Amex (late 80s/early 90s), we often had problems finding hotels that would take Amex when booking for corporate trips. A lot of businesses even then were declining the card due to its cost. In this day and age of everyone offering a credit card, there is no cache associated with any of them.
Looks like they loose my business. I will be only be using Pharma now. And I also will be selling their shares from my investment portfolio.
As an aside, for those who claim they will no longer shop at Shoppers, you’ll probably find that you’ll save lots of money shopping elsewhere 🙂
@davepickard, the point is they gain more in markups from people who don’t use amex than they ‘loose’ from the business of a few customers who insist on amex. Good luck with your investment portfolio, a dictionary might be a wise next purchase.
@ joe: … a dictionary might be a wise next purchase. You’re funny!! Thanks for the laugh!!
Bummer. I have taken to using my amex everywhere . I love the 2-3% cash back I get.
Amex isn’t accepted at a lot of retailers because they charge much higher fees than Visa or MasterCard PLUS businesses have to pay them an annual fee just for the “privilege” to accept their card. I can see why Shoppers would stop accepting them.
Like using my Amex for aeroplan. May have to consider Rexall if they have a seniors discount..
They are still accepting Amex cards. They said it was a mistake from head office. I think maybe Amex agreed to a lower merchant fee.
Must have, originally they said it was just a rumour and had no idea where it came from then people were posting images of signs in stores
Either way, good for those who do have Amex cards
Funny thing is i have transitioned from visa/MC to Amex because their points system is more lucrative and i went into my local SDM last-night and was told that they no longer accept Amex because of fraud. My retail chain had 1% fraud for 2012 so far thats because we trained our staff on accepting credit cards the terms of your credit card states that you should present it with valid id so if the chip and pin doesn’t work or if the purchase is over $250 we trained staff to ask for a valid id.
Check with HO as they seem to have changed this policy to accept them now
My local SDM asks for ID for all CC purchases of gift cards, you dont want to give ID, you pay cash or debit
Loblaws bought SDM–planning that transaction —AMex had to go—Loblaws does not accept Amex and Visa–PCFinancial