u/AgreeablePassenger70

I’ve noticed that a lot of small shops, cafés, and independent businesses in Canada take Visa and Mastercard but not Amex.
Explain like I’m five:
• How do the fees that merchants pay actually differ between Amex and the other major cards?
• What happens in the background when a customer pays with each type of card, who pays what to whom?
• Are there other reasons (like how quickly the business gets the money) that make some small businesses skip Amex?
I’m just trying to understand the payment system better, help me break it down pleasw

When someone uses a rewards credit card at a store, how does the money for the points, cash back, or lounge access actually move around?
Who pays what to whom in the transaction, and how does the rewards part work on a technical level?
Explain like I’m five