AMEX not accepted or surcharge

[cpl]

I tried to use my AMEX at Melbourne Duty Free to buy some wine for a friend in California (I was heading out on United).
They wanted to charge a $5 flat fee for using my AMEX over a Visa Card.
I politely declined adn used my ANZ FF Card.

I just walk away in most cases. If they dont want my money... other shops do. In the end the card fee is just one component in the calculation and therefore as ridiculous as Q's fuel surcharge (basically making the public believe other businesses are not affected by climbing fuel prices).

[Lindsay Wilson]

Just to make my point this month I spend around $2,000 on my AMEX credit card. This is my preferred method of purchase as I get points. However I also had to spend around $1,000 on my VISA because of AMEX not being accepted.

That's like 1/3 of the places do not accept AMEX card!?!

No, that's one third by value not accepting Amex, not one third of places. You will find that it's fairly normal for retailers not always accepting Amex and why most of us carry two cards for that reason.

[aschmid]

Has anybody also thought about the fact that AMEX has a part in this game. Why does AMEX need to charge higher fees compared to other credit card companies?

For me AMEX is a credit card provider. The reason I have a credit card is to make it easier to purchase things without having to carry around cash.

What's the use of a credit card that is not accepted in some places and I have to carry around another card for those places?

Shouldn't AMEX also step up here and say we lower the fees we charge and encourage shops to accept our card so we can provide a better service to our card holders?

[Sheriff]

Consumers have always been slugged a surcharge when credit cards are used to purchase goods/services because merchants have always believed in a user pay credit card system.

In the past merchants have passed on the surcharge/merchant fee to the consumer incorporated into the purchase price of goods/services.

Now that the law permits, some merchants are ripping off consumers by openly passing on another surcharge, which ranges from 2-5% and in some cases even a flat fee

But just because some merchants are not passing on a credit card surcharge doesn’t necessarily mean consumers are not paying a hidden one.

The fact that some merchants are not passing on the surcharge, even though the law permits, is evidence enough that consumers are already being charged a hidden one.

The merchants that JohnK mentioned are happy to continue to charge the consumer a hidden credit card surcharge, which can be increased at any time without the consumer’s knowledge.

When returning from the States recently, just before clearing customs, passed by Downtown Duty Free to purchase fragrance for a friend using my Amex and was advised on presenting my credit card that a 2% surcharge applies. So put the transaction on my Woolworths Ezy MasterCard because I refuse to be ripped off!

The reality is that all consumers are paying credit card surcharges. The trick with paying surcharges is to make sure you pay them once only.

[JohnK]

The merchants that JohnK mentioned are happy to continue to charge the consumer a hidden credit card surcharge, which can be increased at any time without the consumer’s knowledge.

The reality is that all consumers are paying credit card surcharges. The trick with paying surcharges is to make sure you pay them once only.

You are right in a way.

What merchants do under the covers with credit card surcharges I couldn't care about. They also mark up cost prices to make profits.

I ask for a cash price and then offer to pay by Amex. If the price differs because I am using Amex then 99% of the time the transaction is off.

You will also find the merchants I have mentioned are in most cases the cheapest as well.

[oz_mark]

I ask for a cash price and then offer to pay by Amex. If the price differs because I am using Amex then 99% of the time the transaction is off.

If you ask for a cash price the retailer can discount the surcharge from the cost. It's a bit much to expect them to then honour the price when you say "oh actually when I said cash, I didn't mean cash, I meant American Express."

[JohnK]

If you ask for a cash price the retailer can discount the surcharge from the cost. It's a bit much to expect them to then honour the price when you say "oh actually when I said cash, I didn't mean cash, I meant American Express."

Unfortunately that is business. If they want me to buy something from them there has to be something in it for me as well.

BTW we are talking about large merchants, not the corner store, who are adding hidden surcharges on top of exorbitant profit margins to selling price.

[oz_mark]

Unfortunately that is business. If they want me to buy something from them there has to be something in it for me as well.

If you pay cash you get a discount - that is what is in it for you. If you use a card, you get points but those points have to be paid for somewhere by someone, somehow.

[DPG]

Hi all...

I just thought I would chime in and ask a question about people's tollerance towards Credit Card Fees...

Working in an industry where it is common to charge CC surcharges... It is interesting to see people's tolerance to the surcharge.

Some pay it without hesitation, others think of their points, while others go and get cash etc.

So how tolerant are the users or AFF?

I am willing to pay up to around 1.5% for AMEX as I guestimate that I am almost getting value from the points. I usually refuse paying extra for Visa/Mastercard as I know I can find it the same price without the surcharge elsewhere.

D P G

[JohnK]

If you pay cash you get a discount - that is what is in it for you. If you use a card, you get points but those points have to be paid for somewhere by someone, somehow.

oz_mark each of those merchants mentioned by me earlier in this thread are quite happy to give me the same price for credit card as if I was paying cash. Plus I get the credit card reward points as well.

They win by making a sale and I win by buying something that I want/need plus the reward points.

As far as I am concerned Amex is as good as cash and if they can't absorb the merchant fees (or add it as a hidden surcharge for everyone including cash buyers) from Amex or any credit card company then they are not worthy for me to buy from them.