I can't imagine any retailer/service provider accepting "something" just because it represents a profit. Try offering a car yard $100 above their cost or walking out. They will let you walk as would I.
While I do understand your point re: a car dealer and $100 GP relative to the overall price being paid (and the staff time that goes into making the sale and delivering the product), many businesses often accept "something" instead of "nothing" if they have perishable goods, even if it represents a loss (as it reduces the overall loss instead of writing off the full value)... so accepting "something" is certainly not
unheard of - even encouraged in this situation.
In the case of low margin goods (as you mentioned, recharge cards with a 5-10% gross margin), they are most frequently sold through EPAY/XPOS, where the voucher isn't printed (and 'purchased' by the business) until the customer has paid. If you choose not to accept Amex for payment of these products (or at all), it's certainly your prerogative... though as the sale doesn't require extra stock to be kept on hand, is quick, and is all confirmed electronically, I don't understand why you wouldn't want to make an extra sale and add to your business' bottom line, even if it's only by a small amount at a time.
Sure, a customer may very well suck it up and use another card when confronted with your policy on their first visit, but what you don't see are all of the times that customer goes elsewhere to purchase the same product at the same price with their preferred payment method. Add to that the incidental sales that you miss out on (eg. "ooh I might grab a drink and some chips while I'm here and have my Amex out")... which also usually have a hefty gross margin (sometimes enough to cover the transaction costs 10 times over).
Why a business owner would consciously refuse a quick and very easy sale (that was both simple and profitable), I'll never know...
FTR, I'm not having a go at you in particular Buzzard, but there are *many* small business owners stuck in this mindset... it just irks me that a small change in policy could garnish extra sales for the business, increase revenue and profit figures (while adding $0 to capital costs for display stock), and gain a repeat customer (who may also purchase other goods)... yet so many business owners don't see it that way!
Woolworths certainly have the right idea - I can purchase most any recharge from them using my Amex (no surcharge), and they'll also award Qantas points over and above the credit card entitlement, in addition to a fuel voucher which can be converted to even MORE points when I fill up... You can probably guess where I buy my iTunes cards from!! When a business has such a fantastic offering, I simply won't waste time returning to a merchant who sells the same exact product at the same price (usually), but refuses to even let me pay with my preferred card (never mind the added points awarded through EDR - not that I would expect that of a small merchant though).
Of course, not *everyone* is like this (and some will just keep sucking it up over and over again without too much thought), but for those customers who in this day and age continue to display serious loyalty (to airlines, hotels, credit card programs etc), not offering the customer a real opportunity to also be loyal to your business is an opportunity wasted, IMO!
