Not Accepting AmEx Payments? 3 Reasons AmEx OptBlue Will Change Your Mind

In an effort to convert more independent businesses into processing American Express payments, American Express Co. has introduced the new OptBlue program. Under this new program, credit card processors are given a greater role in customizing merchant accounts to meet the demands of small business owners. If you are not currently accepting American Express, you may want to revisit this option under the OptBlue program for the following reasons:

Provider Owns Relationship

Your merchant services provider owns the merchant relationship under the OptBlue program. This means that the initial merchant account application process, including underwriting, is completely handled by the merchant account provider. Although your business must still meet AmEx qualifications to process their credit cards, merchant processors are generally more inclined to help you set up an account and provide you with the best customer service in an effort to keep your business, then let’s say a large company with an excessive amount of volume.  You will also be glad to hear that chargebacks and general merchant support is also covered by your provider. We all know how frustrating it can be calling a big service provider with a complicated automated phone system, so having a single point of contact for your support needs can make all the difference as a busy business owner. The greatest aspect in this new relationship ownership under OptBlue though, is the new role the acquirer is allowed to maintain in setting and adjusting pricing based on AmEx wholesale rates.

Lower Processing Rates

Unlike the older OnePoint program, OptBlue now allows small merchants the opportunity to negotiate final credit card processing rates and fees with their merchant card processor. This procedure is very much like the way providers set rates and fees for the most common credit card brands, Visa and Mastercard. This new feature is allowing many small merchants who have not accepted AmEx the opportunity to process at lower discount rates than in any older Amex programs before. In addition, many businesses can see an increase in customer conversion rates when expanding the acceptable payment methods of their business. Small merchants commonly believe that AmEx transactions costs more and therefore simply choose to not accept them. Surprisingly, many merchants are able to negotiate AmEx rates and fees at a lower cost than some Visa and Mastercard Reward and Corporate / Business card fees.

One Statement & One Settlement Transaction

Another great feature provided under the new Amex OptBlue program is the single consolidated statement merchants will receive, which shows their processing activity for all card brands it accepts. The days of sorting through multiple statements and adding combined total processing costs is over. This makes managing your financial accounts and paper file much more convenient and simplified. In addition, OptBlue will process your settlement transactions at the same time and schedule (on a daily or monthly basis) as your additional card transactions. In the past, AmEx settlement transactions were processed on separate schedules, which resulted in additional steps from the merchant’s end to verify transaction completion. This new easy feature is only another reason to reconsider AmEx processing.

Conclusion

The OptBlue program has done a great job in reidentifying American Express for small business merchants. This new program is a great solution for businesses who want to find out if they could benefit from processing AmEx payments and determine which discount fees are available for their business. Let’s not also forget how easy and convenient processing Amex can be once you’re set up under this program, since your processor will also be managing your additional credit card processing. It’s never too late to start growing your credit card processing capabilities, which is also always a great way to increase customer sales.