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I would never spend any significant amount of money anywhere that did not honor my American Express card. For less expensive, but not unique services and purchases dry cleaning, fast food, etc , I will give my business to a competitor if a particular establishment doesn't accept American Express.
Any business owner that feels that the additional. Additionally, it's certainly a status symbol for a merchant. I've discussed this on a few occassions with merchants who do accept American Express and the general opinion I've heard is that although amex charges higher transaction fees, it's compensated by the much larger purchases and that the merchant can expect from amex customers to their store. There is also the percpetion that amex customers tend to develop more long-term relationships with a merchant and are more likely to be repeat customers.
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I can see how this dynamic wouldn't apply to many types of store, however. I pay for haircuts with my amex, for instance and I doubt there's a lot of variance between each customer's spending in a store like that.
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