AMEX not accepted or surcharge

[ChrisFlyer]

Had an interesting one today at one of my local Subway stores.

They said they no longer took Amex because the fees are too high. I responded that restaurants only usually pay around 2%, and that bigger chains could negotiate a discount. The manager then responded that it's different because they're a franchise (even though they likely still have access to the Subway discount rate, and even if they didn't, the rate wouldn't be too high anyway). I then said "oh well, I'll just go to (suburb) next time - they still take Amex and have the same products at the same price".

Her response was "O..... K.....?"

How dumb can you be! Two percent on a $7.95 sub is $0.159... apparently the bread, a few slices of turkey and the salad/sauce cost *so* much that they just can't afford it... don't get me started on the $3.80 Coke bottles (600mL), which would have a cost price of around 70-80c! Plenty of margin there (though I didn't buy one on this visit).

As I alluded to in my first sentence, there are three Subway stores within a two minute drive of my house.

Store 1 takes Amex with no minimum and no surcharge - and displays the card decals (incl. Amex) on the till and entry door. This is obviously my preferred store.

Store 2 (the store mentioned above) used to take Amex, but just didn't have the Amex logo on display (though displayed Visa/MC logos). They now don't accept it at all.

Store 3 has never accepted Amex, and has a $10 EFTPOS/credit minimum.

All things considered, why would I now visit store 2 or 3?

Rule #1 of business - don't make it difficult for the customer to actually pay, or they will indeed go elsewhere - especially when the alternates offer the same products and pricing!

Ugh...

 

[zzyss]

All things considered, why would I now visit store 2 or 3?

Also, guess which one of the 3 is most likely to still be in business in the next few years? Surely it's not a good sign if managers are trying to claw back mere cents and limiting customers' ability to purchase their products.

 

[Cruiser Elite]

Not AMEX - but VISA.

Just received email from Toll Ipec that all account settlements via Visa / MCard going forward will incur 1.5% surcharge - thanks very much Reserve Bank!

 

[Moopere]

Not AMEX - but VISA.

Just received email from Toll Ipec that all account settlements via Visa / MCard going forward will incur 1.5% surcharge - thanks very much Reserve Bank!

Its just an easy money grab. Push your pricing as high as the market will withstand then add 1.5% to the top of that. The easy solution here is to move away from Toll or at least threaten to do so. If they are not willing to retain the business by waiving 1.5% on CC fees then they really don't want to be working with you anyway and someone else more rightly deserves a shot at it would be my view.

On a more positive note, I've been pleasantly surprised in the last couple of weeks with Amex accepted in places I really felt sure wouldn't ... a couple of boutique clothing shops and family run restaurants - I always pull my Amex even if I feel the chances are low of acceptance just to make a point and have "that conversation" - but had good luck recently.

On the other side, had to inform my local pharmac_ that I've seen for ages that I'd be forced to go elsewhere - last time I used the Amex they gently informed me that they were dropping support and wouldn't accept in the future. Everyone was nice about it, including my response to them, but I've now moved my business to another shop which also turned out to be cheaper as it happens ... go figure (?) - cheaper tag price, Amex accepted and no surcharge.

 

[Cruiser Elite]

Its just an easy money grab. Push your pricing as high as the market will withstand then add 1.5% to the top of that. The easy solution here is to move away from Toll or at least threaten to do so.

Would if we could but the nature of our product / operations leaves us very little choice in freight providors.

 

[DaveB]

Most of my 30 day accounts try and claw back 1-1.5% Visa/MC and 2-3% for Amex. Given they are giving up to 60 days credit and often significant trade discounts, I can understand their finance departments trying to claw back costs when they never have to face their customers. Most of the same suppliers happily accept Amex from the general public paying up to 65% more than what I pay.
When I negotiate prices with my suppliers, I make it clear I will be paying with a credit card and will not open an account unless they accept the credit card without fees, even offering to reduce payment terms to 7 days from EOM.
Suppliers typically will waive the fee, however no success though with Bunnings and can't for the Masters chain to gain a wider footprint.

 

[Buzzard]

Maybe slightly OT but....

Just had a customer spend $2,000 and wanted to pay with savings - didn't ask about credit. Good for me as it's $200 GP.
Savings account declined - exceeds daily limit. The customer does not have a credit account but the savings card is a Mastercard Debit card so any funds coming out come from savings anyway. Process transaction and this time ask customer to select credit.
Low and behold the transaction is approved! Thank you bank - I am now $20 - $30 worse off and you have just made another $20 - $30 for doing what exactly??? :evil: Sorry if this offends but is it any wonder some vendors are so anti credit card when they see the fat banks getting fatter and their sometimes small margins getting smaller. Note to bank: If you are going to approve the payment, approve it when the customer selects savings too. Maybe if I made the sort of obscene profits the banks make I wouldn't give a ****, but I dont.

*Rant over, deep breath, now calm.

 

[akeno]

Ok I have some bad news to bear.

I have always paid by AGL Gas and Electricity bills via paypal. Since changing my primary card to Amex in my paypal account, I've started noticing a credit card surcharge on my following quarters bill.

It shows up on the last page of the bill as Other account charges - merchant service fees - $3.49

Has any AFFs seen this on their bills? Shouldn't AGL by law give notice of some sort if they are going to slap on a surcharge and advise the surcharge percentage rate?

I wasn't aware there is an Amex-Paypal surcharge.

 

[Jama]

Do you still get points on your card when using Paypal or Post Bill Pay ?

 

[akeno]

Yes you get points on your Amex when you use paypal.

I checked with AGL and so in answering my question, they have always slapped on a surcharge for using debit or credit cards.

They said they surcharge for paypal if the source of the funds come from credit cards very very unfair.

 

[Buzzard]

Yes you get points on your Amex when you use paypal.

I checked with AGL and so in answering my question, they have always slapped on a surcharge for using debit or credit cards.

They said they surcharge for paypal if the source of the funds come from credit cards very very unfair.

I really don't understand why "everybody" is so up in arms about credit card surcharges where the surcharge is a fair %.

I am a business owner but am also a consumer. As mentioned previously in this thread, I do accept credit cards and don't charge a surcharge. Well actually thats not true. When I set my prices I factor in the cost of said surcharge as an operating expense.
The end result is that YOU DO PAY IT. you just don't see it. For the consumer the down side is that even if you pay EFTPOS you still pay the surcharge. At the end of the day IT IS YOUR CHOICE to use a credit card, it is not as though there are no other options available. As a consumer I never object to paying the (reasonable) fee if I choose to pay by credit.

More than happy to get shot down in flames for stating my opinion.

 

[Mal]

Email from my storage company (in part):

After reviewing the costs and the additional administration required for processing American Express payments through our business, it became commercially evident that we can no longer accept payment using an American Express Card.

The decision has not been made without serious consideration. We appreciate that this is an inconvenience to our customers who wish to pay for their storage using their American Express Card and for that we sincerely apologise.

 

[yohy?!]

I really don't understand why "everybody" is so up in arms about credit card surcharges where the surcharge is a fair %.

I am a business owner but am also a consumer. As mentioned previously in this thread, I do accept credit cards and don't charge a surcharge. Well actually thats not true. When I set my prices I factor in the cost of said surcharge as an operating expense.
The end result is that YOU DO PAY IT. you just don't see it. For the consumer the down side is that even if you pay EFTPOS you still pay the surcharge. At the end of the day IT IS YOUR CHOICE to use a credit card, it is not as though there are no other options available. As a consumer I never object to paying the (reasonable) fee if I choose to pay by credit.

More than happy to get shot down in flames for stating my opinion.

I don't think anyone disputes what you do as a merchant but I think there is a case to made for instances where many other companies who already cover their operating costs and use a surcharge as an extra "gotcha" revenue stream.

Also cash is going the way of the dodo - any business that expects me to carry cash or forgo FF points just to do business with them needs to rethink their customer service approach, it certainly isn't conducive to repeat business inconveniencing people or trying to encourage them not to pay the way they want to (of course this is more applicable to retail than other sectors).

 

[dcooper]

The biggest issue i have with business owners with surcharging is that they over surcharge or they choose not to surcharge and then just cancel their amex acceptance. Amex then does stuff all once a merchant leaves. I have had so many businesses stop taking american express. If you accept credit then accept all credit cards. When i was in the USA i had no issue using my american express card at all. I came back to Australia and my local IGA's has stopped taking them. What has amex done to get them back on board? NOTHING.

 

[zzyss]

Ok I have some bad news to bear.

I have always paid by AGL Gas and Electricity bills via paypal. Since changing my primary card to Amex in my paypal account, I've started noticing a credit card surcharge on my following quarters bill.

It shows up on the last page of the bill as Other account charges - merchant service fees - $3.49

Has any AFFs seen this on their bills? Shouldn't AGL by law give notice of some sort if they are going to slap on a surcharge and advise the surcharge percentage rate?

I wasn't aware there is an Amex-Paypal surcharge.

I think it's like 1% and I'm getting charged this on my Mastercard Direct Debit anyway... would happily use Paypal/Amex and get more points. Didn't even know you could! Gonna switch off direct debit now

EDIT: Eh? Where do you pay via Paypal? I just logged onto my account and went to pay for something, and Paypal is not listed as an option anywhere. Hmm... maybe not for AGL NSW then...

 

[akeno]

You dont log into AGL for this one. You go to postbillpay.com.au

use the postbillpay code for AGL and customer reference number. These details appear at the bottom of your statement.

Postbillpay is Australia Post's online website for paying bills that you can normally pay in the branch. Credit cards and Paypal is an option on this website.

 

[akeno]

I really don't understand why "everybody" is so up in arms about credit card surcharges where the surcharge is a fair %.

I am a business owner but am also a consumer. As mentioned previously in this thread, I do accept credit cards and don't charge a surcharge. Well actually thats not true. When I set my prices I factor in the cost of said surcharge as an operating expense.
The end result is that YOU DO PAY IT. you just don't see it. For the consumer the down side is that even if you pay EFTPOS you still pay the surcharge. At the end of the day IT IS YOUR CHOICE to use a credit card, it is not as though there are no other options available. As a consumer I never object to paying the (reasonable) fee if I choose to pay by credit.

More than happy to get shot down in flames for stating my opinion.

Let me explain. I just don't like being slapped a surcharge without my knowledge. Especially when it's hidden in fine print at the bottom of the statement.

Another reason why it got me so angry is that Paypal is always marketed as being Surcharge free.

Especially when you pay Telstra with Paypal (linked to a credit card source) it's surcharge free even though you are paying by credit card really. The same is true for a lot of other companies.

 

[wxxnxs]

Let me explain. I just don't like being slapped a surcharge without my knowledge. Especially when it's hidden in fine print at the bottom of the statement.

Another reason why it got me so angry is that Paypal is always marketed as being Surcharge free.

Especially when you pay Telstra with Paypal (linked to a credit card source) it's surcharge free even though you are paying by credit card really. The same is true for a lot of other companies.

Virgin Australia does not, it charges $30 for using paypal, same as your credit card.

 

[Buzzard]

Let me explain. I just don't like being slapped a surcharge without my knowledge. Especially when it's hidden in fine print at the bottom of the statement.

Another reason why it got me so angry is that Paypal is always marketed as being Surcharge free.

Especially when you pay Telstra with Paypal (linked to a credit card source) it's surcharge free even though you are paying by credit card really. The same is true for a lot of other companies.

I certainly agree. Any surcharge should be clearly stated as well as being fair and reasonable. I like the way you pay your Telstra a/c... will have to give it a go myself using cr. card via Paypal. Thanks for the heads up.

 

[akeno]

@wxxnxs @buzzard

You will find that there are many many merchants that you can pay with using paypal with no surcharge and Telstra is certainly one of them.

It is strange that Telstra would slap on a 1% surcharge for paying direct with a credit card, however if you use paypal instead to pay for your bill there is no surcharge at all.

Hence i tend to pay nearly everything I can using paypal to avoid the surcharges

Here is a brief list of merchants that surcharge for Amex, but no surcharge for Paypal. So you get my point.
chemistwarehouse online
brandsexclusive
buyinvite
telstra