American Express Business Explorer Credit Card - deposits to spend above credit limt

[alect]

Just had my Amex BUsiness Explorer declined. Called Amex and had an infuriating conversation with them.

Situation = invoice from a supplier payable with credit card without fee - $78k; my Amex credit limit is $35k; I had supplier break the invoice into $35k+$35k+$8k

Paid the first $35k and $8k on the same date deposited $50k into Amex. plus some other smaller transactions Shows on my Amex online account:

Balance = -$7k
Available Credit = $42k

When I go to pay the last $35k invoice it was declined. Amex says I've exceeded my credit limit. I say no I haven't - any credit they have extended to me has been paid off. And my available credit shows as $42k. Round and round and in essence they tell me it's more like a spending limit. (even though I have spent more than $35k in the last week).

WTF? Is this normal Amex stupid rules? I have had other credit cards where I have made deposits, so I can spend more than the credit limit in a month. The card issuer is only concerned about the risk of credit extended.....why would they care how much I spend if I already paid it back?

Any suggestions?

 

[sudoer]

I've had this happen before on a consumer card. If you ask nicely and let them know you weren't aware of the restriction they can make a one-off exception to approve the next transaction.

 

[albyd]

Amex are funny like this. They don’t like accounts being in ‘credit’ so freeze cards when this happens but you usually have a couple of days to put another offsetting charge through before this becomes a problem.

Sounds like you might be better off with a charge card if you don’t carry a balance as it will give you more flexibility over time and the earn rate is higher (tho the AF is much higher).

You can make a phone “payment” with an operator of up to $100k every 72 hours and it will be available immediately (at least it was for the consumer card). This should allow you to pay those large bills.

YMMV.

 

[lovestotravel]

Along the same lines I know my Platinum limit is around $25k monthly, based on spend

I need to make a $60k purchase, I called and they said up to around $30k would be approved but couldn't provide options to put a larger payment through.

Asked if I could prepay and was told that may cause other problems.

Any ideas ?

 

[albyd]

IME I’ve never had any problems pre-paying the charge by way of an over the phone payment where they direct debit your nominated account. You s can an only do these once every 72 hours due to the amount of time it takes to turn the clearance around so they’re sure you have the funds. I’d try again. You might get a more knowledgeable operator next time or stand your ground. I’ve done this many times even with my consumer Explorer credit card.

 

[Dr Bob]

I've done this or similar many times, spending up to twice my credit LIMIT in any statement cycle but never exceeding my available credit during the cycle. I usually make a part purchase then the next day make a payment and wait for that to appear in the transactions before making another part purchase. On one occasion, several years ago, I needed to make a single purchase of 42K (a car) well above my limit of 34K so created an available credit of 45K then rang Amex and was told "thanks for letting us know Dr Bob that won't be a problem I'll make a note and it will be approve".
So perhaps the call to Amex should have been before the transaction.

 

[daft009]

Sometimes they want to wait the 72hrs since you made your payment to let the next transaction through.

Used to have similar situations which is why I changed to the charge card

 

[SCM]

I did this recently as well, they didn't seem to like it, and they had to make an exception for the charge to go through, even though I did put enough money on my card - they said it doesn't matter as no transaction above the credit limit is approved (I guess without the temporary exemption!)

It's all a bit silly, why is it in their interests to stop their customers from paying for things they clearly have money to pay for.

 

[lovestotravel]

I'll call them shortly and see what they say, again...

My "spend limit" on the charge card is around $20K and I need to spend $35K.... but it has to be one transaction as I can't split it with the purchase

If I can't put it on Amex it will be on a Visa card and I miss out on the Amex MR Points