credit card company

Have you ever wondered why certain stores don’t accept cards online or accept selective credit cards? While online payments are becoming more and more convenient, there are still certain cards that are not accepted everywhere. 

While you may think some cards are just more popular than the others, the actual reasons are a bit more complex. To help you understand the topic better, we will take you through the reasons for the selective acceptance of certain cards and why some brands still prefer hard cash. 

But first, let’s explore popular credit card companies around the world!

Major Credit Card Companies 

Below we have mentioned 4 popular credit cards that are used globally:


It is the most popular credit card network in the world. You will rarely encounter a website that doesn’t accept it. If you want one for yourself you can consult with a credit card issuer as Visa doesn’t itself issue the cards. 

Visa at its core is a financial services corporation that provides electronic funds transfer services through credit cards, prepaid cards, debit cards, and gift cards.  

American Express

It is one of the most recognized and the oldest credit card networks and issuers in the world. It offers great customer service, card options along with rewards for those who are always looking for a new deal. 

Master Card

It is one of the most widely used card networks providing transaction facilities from credit and debit cards. It provides services to millions of businesses and consumers. 


It is a credit card issuer that saves you from heavy annual fees and provides great rewards and bonuses. The card options include a secured card, a business card, student cards, and consumer cards. 

3 Reasons Why Some Cards Don’t Work For Certain E-Stores

Below are the 3 major reasons why certain cards are not accepted by certain stores:

High merchant fee

The high cost for certain cards can be the reason why they aren’t accepted by some brands. Let’s take an example. American Express charges from 2.5% to 3.5 % on each purchase. That’s more than 1.5% to 2.5% charged by Visa and MasterCard. The high fee, therefore, becomes a reason why some brands won’t accept American Express cards for payment. The cost may seem small but it can build up and take away a big amount in the end. 

Another thing to note is that many people have a Visa or a MasterCard as a backup. Thus, customers can use that instead of their American Express cards to get the job done. 

Having one credit card option helps save overall cost 

When you know you have to accept cards online, why not assign the job to one company and save your overall cost! That is why many companies, including Costco, accept one credit card. Costco accepts payments through Visa Cards only. 

Costco is expected to reach a high revenue of $150 Billion in the present fiscal year. That gives it the power to negotiate with companies and get a great deal. 

If it accepts multiple cards, the chances of saving costs on all of them and negotiating with each company would be a hard task. Thus, giving all of its orders to one company is in the best interest of Costco and the payment processor. 

Small scale businesses can’t afford a hefty fee

Small businesses rely on small amounts of profits per purchase. For newer brands that are trying to build a good reputation in the market and provide good quality as well, they have a very slim margin for profits. 

If they allow expensive credit card companies to take that away, it can affect their finances and put their business to a halt. 

To cover up a large cost they might have to charge the customer more or pay from their revenues. Thus, smaller businesses try to cut that cost by either not allowing credit card payments or using cards that charge a smaller fee. 

3 Reasons Why Some Stores Don’t Accept Credit Card Payments

Below are some reasons why certain companies do not allow credit card payments: 

To avoid taxes

Now, this isn’t a legal practice but some brands don’t accept cards online to avoid taxes. Without a record, it’s harder to know the revenue generated by the brand and thus avoiding heavy taxes becomes easier. 

Although the practice is unethical and should be avoided at any cost, it is sadly very common. 

To save cost

As mentioned above, many brands are trying their best to cut down costs. Some offer certain credit card options while some remove them altogether. To avoid paying any cost for electronic payments, many brands prefer cash. 

Some brands provide debit card payment services, as they are comparatively less costly. 

It’s simpler 

Human beings have been dealing in cash for centuries. From coins to paper cash, we are so used to it that card payments seem like a daunting task. Setting up a payment gateway and a payment processor can be complex, costly, and may take time. 

To save oneself from all that, certain brands avoid it by only accepting cash. Another benefit is that cash can be immediately used for other tasks and doesn’t require days or hours to be received from the customer.  


In this article, we went through the major credit card companies in the world, the reasons why some are not accepted by certain stores, and why some brands don’t accept any credit cards. 

MasterCard, Visa, Discover, and American Express are some of the most popular companies out there. The primary reason why some of the above cards are accepted while some are not is due to the cost. American Express and Discover are costlier than the other two. The cost adds up over time and becomes a significant amount. 

That cost can be saved with less costly alternatives. 

The 2nd reason is that many big names in certain industries like to assign the payment processing duty to one company. They do that to get bigger discounts and better deals. It saves the company from heavy fees and the payment processor also makes good money by working with successful brands. 

The 3rd reason applies to smaller businesses. As they make lesser profits per sale, they can’t afford to pay expensive card companies. 

About companies that don’t accept any cards, they do it to save money. They don’t want to utilize even the most reasonable card services. Plus, some companies want to avoid the complexity behind the entire process. But, some companies do have malicious intentions and they try to save themselves from taxes by avoiding electronic records of their profits. 

By Anurag Rathod

Anurag Rathod is an Editor of, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.