Accepting Amex and Premium Cards: What UK Businesses Pay

LAST REVIEWED 2026-09-06

Why Amex costs more

American Express operates as a three-party card scheme, meaning it acts as both issuer and acquirer. Unlike four-party schemes such as Visa and Mastercard, Amex is not subject to the interchange fee caps introduced by the EU Interchange Fee Regulation (IFR) and retained in UK law. The IFR caps consumer debit interchange at 0.2% and consumer credit at 0.3%, but these caps apply only to four-party schemes. As a result, Amex is free to set its own merchant service charges, which are typically higher than those for Visa or Mastercard.

For UK businesses, this means accepting Amex often incurs a higher cost per transaction. Acquirers usually quote a blended rate for Amex that reflects its higher interchange and scheme fees. While the exact rate varies by provider and business turnover, a common figure is around 1.75%. This compares with effective rates for consumer cards that are often below 1% after the caps. The difference arises because Amex charges merchants a fee that covers both the acquiring and issuing functions, without the regulatory ceiling that applies to its competitors.

Businesses that value Amex customers, who tend to have higher spending power, may decide the extra cost is worthwhile. However, for low-margin businesses, the additional expense can be significant. Understanding why Amex costs more is the first step in deciding whether to accept it.

Commercial and corporate cards

Commercial cards, including business, corporate, and purchasing cards, are also exempt from the IFR caps. The regulation applies only to consumer debit and credit cards. This exemption means that interchange fees for commercial cards are not limited to 0.2% or 0.3%. Instead, they are negotiated between the card schemes and the acquirer, often resulting in higher fees.

For UK businesses, accepting commercial cards can be more expensive than accepting consumer cards. The interchange fee for a commercial card can be significantly higher, sometimes exceeding 1% or even 2%, depending on the card type and the scheme. This is because commercial cards often offer additional benefits such as expense management tools, insurance, and rewards, which are funded by higher interchange fees.

Acquirers typically pass these costs on to merchants through higher merchant service charges. When a customer uses a corporate card, the merchant may pay a higher rate than for a personal card. Some acquirers apply a separate rate for commercial cards, while others blend them into an overall rate. Businesses that frequently receive payments from corporate clients should be aware of these potential costs and factor them into their pricing strategies.

Premium consumer cards

Premium consumer cards, such as those offering rewards, cashback, or travel benefits, often carry higher interchange fees than standard consumer cards. However, under the IFR, these fees are still capped at 0.3% for credit and 0.2% for debit, regardless of the card's premium status. This means that, unlike Amex and commercial cards, premium consumer cards issued by Visa or Mastercard are subject to the same caps as any other consumer card.

In practice, the interchange fee for a premium consumer card may be at the cap, but it cannot exceed it. This provides some cost certainty for merchants. However, premium cards may still be more expensive to accept if the acquirer applies a higher merchant service charge due to the card's benefits or the customer's spending profile. Some acquirers may categorise premium cards differently, but the interchange component remains capped.

For UK businesses, the key distinction is between cards that are subject to the IFR caps and those that are not. Premium consumer cards from four-party schemes are capped, while Amex and commercial cards are not. This means that the cost of accepting a premium Visa or Mastercard is likely to be lower than accepting an Amex or a corporate card, even if the customer enjoys similar rewards.

Provider Amex rates

UK acquiring providers publish their merchant service charges for Amex, but these rates are often not transparent and vary by business type, volume, and negotiation. The table below shows indicative rates from selected providers, based on publicly available information. Note that actual rates may differ.

These rates are examples and not exhaustive. Businesses should contact providers directly for a quote. The UK market for card acquiring services is competitive, and the PSR has been reviewing it to ensure fair treatment for merchants. In its market review, the PSR has highlighted issues such as lack of transparency and high costs for small businesses.

When comparing providers, it is essential to look beyond the headline rate and consider other fees, such as statement fees, setup costs, and PCI compliance charges. Some providers may offer a lower Amex rate but compensate with higher fixed fees. Businesses should also be aware that Amex rates may be negotiable, especially for higher transaction volumes.

Should you accept Amex

Deciding whether to accept Amex involves weighing the potential benefits of attracting Amex customers against the higher costs. Amex cardholders tend to have higher average spending and are often loyal to merchants that accept their card. For businesses in sectors such as hospitality, travel, and luxury retail, accepting Amex can be a competitive advantage.

However, the higher merchant service charge can erode profit margins, particularly for low-value transactions. A business processing many small transactions may find that the cost of accepting Amex outweighs the benefit. Some businesses choose to accept Amex but set a minimum transaction value, although this practice is not allowed for consumer cards under UK surcharging rules.

It is also worth considering that Amex has been expanding its acceptance network and may offer incentives to merchants, such as reduced rates for new customers or marketing support. Businesses should evaluate their customer base and sales data to determine whether Amex customers are likely to bring incremental revenue. For many businesses, the decision is not binary; they may accept Amex for larger transactions or during peak seasons.

Ultimately, the choice depends on the specific circumstances of the business. A cost-benefit analysis, taking into account the average transaction value and the spending behaviour of Amex customers, can help inform the decision.

Surcharging rules in the UK

In the UK, surcharging for consumer card payments is banned under the Payment Services Regulations 2017, which implemented the EU Payment Accounts Directive. This ban applies to all consumer debit and credit cards, including Visa, Mastercard, and Amex. Businesses are not allowed to charge a fee for customers paying by these cards.

However, the ban does not apply to commercial cards, such as corporate or business cards. Businesses may surcharge for payments made with commercial cards, but they must be careful to comply with the rules. The surcharge must not exceed the cost of accepting the card, and it must be applied consistently. In practice, many businesses choose not to surcharge commercial cards to avoid complexity and potential customer dissatisfaction.

The ban on surcharging consumer cards means that businesses cannot pass on the higher cost of accepting Amex to the customer. This makes it even more important for businesses to consider whether the benefits of accepting Amex justify the cost. Some businesses may choose to absorb the cost as a marketing expense, while others may decide not to accept Amex at all.

It is also worth noting that the UK's departure from the EU has not changed these rules; the surcharging ban remains in force. Businesses should seek legal advice if they are unsure about their obligations.

Frequently asked questions

Can I refuse Amex?

Yes, UK businesses are not obliged to accept American Express cards. Unlike some countries where acceptance is mandatory, UK merchants have the freedom to choose which card schemes they accept. Many businesses decide not to accept Amex due to higher fees, while others accept it to attract customers. If you refuse Amex, you should display a sign or inform customers to avoid confusion. However, if you do accept Amex, you must treat it like any other card and cannot discriminate against it in terms of surcharging, as consumer card surcharging is banned.

Can I surcharge card payments in the UK?

For consumer cards, surcharging is banned in the UK under the Payment Services Regulations 2017. This means you cannot add a fee for customers paying by personal debit or credit cards, including Amex. However, you may surcharge for commercial cards, such as corporate or business cards, but the surcharge must not exceed the cost of acceptance. In practice, many businesses avoid surcharging altogether to maintain good customer relations. Always check the latest regulations, as rules can change.

Are business debit cards capped?

No, business debit cards are not subject to the interchange fee caps set by the IFR. The caps apply only to consumer debit and credit cards. Commercial cards, including business debit cards, are exempt, meaning their interchange fees are not limited to 0.2% or 0.3%. As a result, accepting business debit cards can be more expensive for merchants than accepting consumer debit cards. The exact cost depends on the card scheme and the acquirer's pricing.

Why is Amex outside the caps?

Amex is a three-party card scheme, meaning it acts as both the issuer and the acquirer in a single transaction. The IFR caps apply to four-party schemes, where there are separate issuers and acquirers. Since Amex does not have a separate acquiring bank, it is not subject to the same interchange fee regulations. This allows Amex to set its own merchant fees, which are typically higher than those of Visa or Mastercard. The UK has retained this exemption post-Brexit.

Does OptBlue exist in the UK?

OptBlue is a program introduced by American Express in the United States to allow third-party acquirers to process Amex transactions. In the UK, Amex has historically operated its own acquiring network, but it has also partnered with some acquirers to offer Amex acceptance through their platforms. However, the specific OptBlue program is not widely available in the UK. UK businesses typically obtain Amex acceptance directly from Amex or through their existing acquirer if they have a partnership.