The Real Drawbacks of Choosing an American Express Card

American Express likes to promote itself as the “premium” credit card brand. Glossy perks, sleek designs, and that “exclusive” feeling. But once you get past the marketing, Amex cards come with real baggage—stuff you’ll notice fast if you plan to use your card as your daily driver. Before you jump in, here’s what I wish someone had told me.

1. Acceptance Issues: You’ll Hit Brick Walls

Let’s start with the obvious: Amex simply isn’t accepted everywhere. I can’t count the number of times I’ve reached for my card and gotten a flat-out “Sorry, we don’t take Amex.” Grocery stores, local restaurants, government agencies, utility companies, online merchants—many just don’t bother. Why? Their processing fees are higher than Visa or Mastercard, so merchants opt out.

If you want a “one-card-for-everything” setup, Amex won’t cut it. You’ll need a backup, or you’ll get used to awkward moments at the checkout.

2. Higher Annual Fees: You Pay for the Privilege

Sure, you get perks. But the annual fees can be brutal—especially on their flagship cards. Some basic Amex cards are competitive, but once you get into their rewards and travel lineup, you’re often paying $120, $250, or even $700+ a year. Unless you’re squeezing every perk, it’s tough to justify.

And let’s be real: the old “flash your Amex for prestige” thing doesn’t hold up anymore. Most people use Apple Pay or Google Pay, so your card is buried in a digital wallet, never actually seen by anyone. That whole status play? It’s dead. You’re paying for a brand name, not recognition.

If you just want simple cashback or don’t travel much, the math usually doesn’t add up. There are plenty of no-fee or low-fee Visa/Mastercard options out there.

3. Rewards Can Be Complicated or Overhyped

Amex loves to tout Membership Rewards points. But redemption options can be confusing or even disappointing. Want to transfer points to airlines? Sure, but the partners are limited, and some have recently devalued their points. Want to redeem for gift cards or merchandise? You’ll often get a poor value per point.

Some categories have high earn rates—until you realize you can only use them at a small set of stores, or the cashback comes in the form of a statement credit you have to remember to apply.

4. Interest Rates Aren’t Lower

There’s no magic here. Interest rates on Amex cards are similar (or sometimes higher) than other issuers. If you ever carry a balance, you’ll get hit just as hard. Don’t expect a break just because it’s Amex.

5. Customer Service Isn’t What It Used to Be

Amex used to have a legendary reputation for service. Now? It’s hit or miss. Some reps are fantastic, but I’ve personally had long wait times and robotic responses when I really needed help. The “white glove” treatment seems to be fading, at least in North America.

6. Credit Limits Can Start Low

Don’t expect a huge limit out of the gate. Amex is notorious for starting customers with modest limits, especially if you don’t have a deep credit history. And if you want an increase, you’ll likely need to ask (and sometimes jump through hoops).

7. Foreign Transaction Fees

Unless you pay for a premium travel card, Amex often charges foreign transaction fees—usually around 2.5%. For a company that loves to target frequent travelers, that stings.

8. Fewer Balance Transfer Options

If you’re hoping to shift a high balance from another card, Amex isn’t known for generous balance transfer offers. Their products are rarely competitive here. Look at other issuers if you need breathing room to pay down debt.

9. Limited Co-Branded Cards in Canada

If you’re in Canada (like me), you’ll find a narrow set of co-branded options compared to Visa or Mastercard. For example, you won’t get an Amex Costco card—Costco only takes Mastercard here. Some major retailers just don’t bother partnering with Amex at all.

10. Lack of Certain Perks

Oddly, some Amex cards lack common perks you’ll find elsewhere, like mobile device insurance, price protection, or flexible travel credits. You need to dig into the fine print, because not every Amex card offers the premium features you might expect.

Bottom Line

If you’re looking at American Express, go in with your eyes open. The cards have perks, but the downsides are real—especially if you’re focused on everyday convenience and value. Carry a backup Visa or Mastercard, do the math on annual fees, and make sure you’re actually using the benefits you pay for.

Otherwise, you might end up paying a premium for a card you can’t even use when you need it.

Want more honest takes on credit cards and rewards programs? Leave a comment —I cut through the hype.