With ClientPay, your merchant account automatically comes with the ability to accept Visa, MasterCard and Discover but American Express is optional. It may sound great to offer your clients every payment option possible but it can come at a price. Be sure you know all the details before making a final decision to commit to four card types.
American Express remains a third party when it comes to payment processing. They issue their own cards, authorize purchases and settle to the merchant's bank account. They have recently started to allow payment processors to acquire their merchants to increase acceptance rates but they still set the rules for how the account is handled. If the annual sales volume for American Express is less than $1 million, we can bundle services so that all transactions deposit together. As soon as you exceed that $1 million threshold, or if you sign up with a volume that already exceeds the threshold, your account is automatically converted to a direct relationship with American Express. This means that all of your American Express transactions can be processed through ClientPay but they will be forwarded to American Express for settlement and funding. Once American Express has taken control, we no longer have access to funding details.
Another area of concern is how accepting that fourth card type impacts your firm's total processing costs. American Express also has control of the rates assessed for their cards, which are typically higher than Visa, MasterCard and Discover for a similar transaction. Limiting accepted credit cards will minimize your overall costs and save you money.
For questions related to card type acceptance or to make changes to your account, please reach out to firstname.lastname@example.org today!