Amex vs Mastercard

Amex, short for American Express, is a payment system that issues cards directly to consumers, finances the payments and processes the transfers. They’re in charge of the credit show, setting their own prices, services and rewards, and any business you do is done directly through them.

There are a multitude of different Amex credit cards to choose from, so you can pick one that suits your personal needs. While Amex doesn’t publish a list of worldwide locations for their cards, they’re accepted at over 135,000 retailers across Australia.

Unlike Amex, Mastercard is a payment processing system that lets financial institutions brand their cards as ‘Mastercard’, use the Mastercard payment processing system, and issue the cards to their customers themselves.

Mastercard credit cards have four categories - Standard, Platinum, World and World Elite - with each offering a different set of benefits. Mastercard is widely accepted in more than 210 countries and territories and in more than 150 currencies.

Now that you know the basics of Amex and Mastercard credit cards, let’s dig a little deeper and discuss what sets them apart as unique payment networks.

Amex vs Mastercard: Acceptance

One of the biggest differences between Amex and Mastercard is that Mastercard is known to be more widely accepted, both domestically and internationally.

In Australia, it’s often cheaper for merchants to accept a Mastercard payment compared to an Amex one. According to Reserve Bank data, the average merchant fee is 0.9% for Visa and Mastercard credit card transactions. Amex fees are on the pricier side, with an average merchant fee sitting at the 1.3% mark as of September 2022.

Amex vs Mastercard: Eligibility

To secure either an Amex credit card or Mastercard credit card, you’ll need to meet certain eligibility criteria.

Amex requires card holders to:

• have no history of bad debt or payment default;
• be aged 18 years or over;
• be an Australian citizen, permanent resident or hold a long term visa.

Eligibility for a Mastercard will depend on the financial institution issuing it out, as they’ll all have their different rules and regulations. Generally though, Mastercard has more card options that are easier to qualify for compared to Amex, such as secure credit cards.

Amex vs Mastercard: Interest

Amex has a few interest options, depending on the credit card type. This includes low rate cards and premium offerings with higher interest rates. The interest you’ll have to pay on a Mastercard credit card will depend on the card and financial institution you get it from.

Amex vs Mastercard: Fees

Fees are an important factor to think about when choosing a credit card, and you’re likely to see some fees charged on both Amex and Mastercard card options. This includes:

• Account-keeping fees
• Additional statement fees
• Cash advance fees
• Currency conversion fees
• Dishonour fees
• Late payment fees

For both options the annual fees depend on the issuer and the card type and can range from as little as a few dollars per month to several hundred per year. Other fees may also apply but again will depend on which financial institution you go through.

Something to keep in mind when it comes to fees is that some businesses charge card surcharges to cover the cost of accepting card payments. The Australian Competition and Consumer Commission (ACCC) has banned businesses from charging excessive surcharges for some payment types, including Mastercard credit, debit and prepaid cards. However, not all payment types are covered by the ban, including Amex cards. This means the ACCC can’t take action if a business charges you more than what it costs them to process the payment.

Amex vs Mastercard: Rewards program

Another big difference between Amex and Mastercard is how their reward systems work. 

Amex has its own rewards program where you can earn Membership Rewards points (on eligible cards), which can be redeemed on travel and holidays, experiences, shopping, gift cards and more. They also offer cards that allow you to earn Qantas Frequent Flyer or Virgin Velocity points to help you save on travel. If you opt for a more premium card, you may be able to take advantage of concierge services, travel insurance, shopping insurance, and other special offers.

The rewards you can reap with a Mastercard credit card will largely depend on the provider and card type you go with. All Mastercard members should be able to nab specials on travel, sports, food, arts and culture, shopping and entertainment with Mastercard's Priceless Specials. Depending on the card and issuer, Mastercard members may be able to access concierge services, travel assistance, shopping insurance and other benefits.

Amex vs Mastercard: Customer support

When it comes to customer support, Mastercard offers emergency virtual assistance anytime, anywhere, in any language. Mastercard Global Services assists customers with reporting a lost or stolen card, obtaining emergency card replacement or cash advance, finding an ATM location and answering questions about their account.

Amex offers a 24/7 live chat so that customers can still seek an answer outside of operating hours. With Amex, you can cancel your card or order a new one via your online account or the Amex App. If you want to put a temporary lock on your card, you can also do that through your online account.

Ultimately, whether you opt for an Amex or Mastercard credit card depends on your personal and financial circumstances, and how you intend to use your card. Be sure to look into the interest rates, exchange rates, credit limits and features each card has, as well as the Product Disclosure Statements, to land on one that makes sense for you (and so you know exactly what you’re signing up for).