When you try to pay with a credit card and the merchant says they won’t take it, it could be because you’re using a credit card backed by a network that isn’t as widely accepted as Visa and Mastercard. Discover and American Express credit cards aren’t as widely accepted by merchants in the United States. S. and worldwide.
Look for the network logo shown on the front or back of your credit card to learn more about the merchant acceptance of your credit card. Then, have a look at the table below, which details the U.S. merchant acceptance rates for American Express, Discover, Mastercard, and Visa. S. and worldwide: .
As illustrated, both in the U. S. and around the world, the most widely used credit card companies are Visa and Mastercard, with Discover and Amex following closely behind. The most significant difference between Amex and Visa/Mastercard is the quantity of global merchant acceptance locations—22. 1 million versus 44. 4 million. That’s a difference of 22. 3 million merchant locations, so when traveling outside of the U.S., it might not be the best idea to bring along your Amex cards. S. We recommend always carrying a Visa or Mastercard as a backup in case a merchant doesn’t accept Amex.
Choosing the right credit card can be a daunting task, especially when considering the wide array of options available. One crucial factor to consider is the card’s acceptance rate, as it determines where you can use it seamlessly. This article delves into the world of credit card acceptance, providing insights into which cards reign supreme and offering valuable tips for making an informed decision.
The Contenders: Visa vs. Mastercard vs. American Express vs. Discover
The credit card landscape is dominated by four major players: Visa, Mastercard, American Express, and Discover. Each boasts a vast network of merchants, but their acceptance rates vary significantly. Let’s break down their strengths and weaknesses:
Visa: The undisputed champion Visa boasts the most extensive network with over 35 million merchants accepting it in more than 200 countries and territories. Its global reach makes it the ideal choice for frequent travelers and international shoppers.
Mastercard: Closely following Visa, Mastercard enjoys acceptance at over 35 million merchants across 200+ countries and territories. While its global reach is slightly smaller than Visa’s, Mastercard offers competitive benefits and widespread acceptance.
American Express: Although not as widely accepted as Visa and Mastercard, American Express holds its own with over 10.6 million merchant locations in the U.S. and 160+ countries and territories. It caters to a more affluent clientele, offering premium perks and rewards.
Discover: With over 10.6 million merchant locations in the U.S. and acceptance in over 200 countries and territories, Discover falls behind Visa and Mastercard in terms of global reach. However, it offers competitive rewards programs and is steadily expanding its acceptance network.
Factors Influencing Credit Card Acceptance
Several factors influence a credit card’s acceptance rate:
Merchant Processing Fees: Merchants pay a fee to the card network each time a transaction is processed. Higher fees can discourage merchants from accepting certain cards, leading to lower acceptance rates.
Network Partnerships: Card networks partner with other networks to expand their reach. For instance, Discover partners with Diners Club, China UnionPay, and JCB, increasing its global acceptance.
Cardholder Spending Habits: Card networks with higher-spending cardholders are more attractive to merchants, as they generate more revenue. This can lead to increased acceptance rates for cards like American Express.
Choosing the Right Card for You
The “most widely accepted” title doesn’t necessarily translate to the “best” card for everyone. Your choice should align with your spending habits and lifestyle. Consider the following factors:
Travel Frequency: If you travel frequently, prioritize cards like Visa or Mastercard, which offer global acceptance.
International Purchases: For frequent international shoppers, Visa or Mastercard are ideal, as they typically have lower foreign transaction fees than American Express or Discover.
Rewards Programs: Choose a card that aligns with your spending habits and offers lucrative rewards programs. Cash back, travel points, or airline miles are popular options.
Merchant Acceptance: While Visa and Mastercard are widely accepted, it’s wise to check the acceptance rate of specific cards you’re considering, especially if you frequent certain merchants.
Additional Resources
WalletHub: This comprehensive financial resource provides detailed information on credit card acceptance rates, including a breakdown of the most widely accepted cards in various countries.
LendingTree: This online lending marketplace offers a study on credit card acceptance worldwide, comparing the acceptance rates of Visa, Mastercard, American Express, and Discover.
Choosing the right credit card requires careful consideration of various factors, including acceptance rate, rewards programs, and fees. By understanding the strengths and weaknesses of each major card network and aligning your choice with your spending habits, you can find the perfect card that fits your needs and maximizes your financial benefits.
How to check if your Discover card is accepted abroad
Discover partners with other payment networks that allow their cards to be accepted at more locations when you travel abroad, such as Diners Club, China UnionPay, and JCB — depending on the location. Check for those logos when making a purchase and since some locations may not display the logo, you can try presenting your card when paying. Note: Just because a country says it accepts Discover doesn’t mean every merchant accepts your card. You can also search Discover’s map for specific countries that aren’t mentioned below.
Here are the Discover networks where you can use your card overseas in…
- North America: Discover, Diners Club
- Central America: Discover
- South America: Diners Club
- The Caribbean: Discover
- Europe: Discover, Diners Club
- Asia: Diners Club, China UnionPay, JCB
- Africa: Diners Club
- Oceania: Discover, Diners Club
Why does Amex have low worldwide merchant acceptance?
American Express cards’ higher merchant processing fees (MPF) contribute to their limited acceptance. Every time a credit card is swiped, a merchant is assessed an MPF, which varies depending on the network. According to a 2018 Nilson Report, Amex has the highest MPF at 2. 33% compared to 2. 17% for Visa and Mastercard and 2. 09% for Discover.
Amex cardholders spend more money, which can be more profitable for merchants, which contributes to Amex’s higher fees. It’s important to remember that during the past few years, Amex’s MPFs have been continuously falling while its acceptance rate has been increasing. LendingTree was informed by an Amex representative that Amex is working to achieve equal merchant acceptance with Visa and Mastercard in the U.S. S. by 2019, and they are making good progress towards that goal.
According to Nilson Report data, Amex expanded merchant acceptance from 6. 4 million locations in 2013 to 9 million in 2017. And, an Amex rep stated its data showed the issuer added 1. 5 million new U. S. locations accepting their cards within the past 12 months.