AMEX not accepted or surcharge

[FuzzyAUS]

What's the name of the mob where you pay them via amex for a 2% surcharge and they pay your supplier?
cheers

amex themselves offer this too (well they approached me to do it), i dont remember the % (but can look it up if people wanted to know), but think it was 2.5-3%, i didnt think it was worthwhile, even with the deductions

 

[Blackswan]

Went to a previous Shop Small participant today (a bakery/cafe with three outlets in Perth) - a sign up saying "Sorry No Amex". I was told it was because Amex just keep upping their fees.

Such a shame, I was local champion too.

 

[unfunkable]

Amex keep upping their fees? After the last small shop I got a call and they reduced my fees from 1.95 to 1.85 % if I 'warmly' accepted Amex

 

[albyd]

I tried to buy some breakfast at some take away shops in Sydney CBD this morning all wanted 2.5% extra for all cards. Looks like the incidence of surcharging is only going to get worse.

 

[N860CR]

Amex keep upping their fees? After the last small shop I got a call and they reduced my fees from 1.95 to 1.85 % if I 'warmly' accepted Amex

The level of penny pinching at some small businesses amazes me. If your business can't survive on the less than 1% difference between Amex and visa/MC then you really have no place running it. I had some friends visiting from the U.K. and we got dinner at a restaurant on their way to the airport. The merchant refused to do a simple 50:50 split. Very embarrassing and they ensured I'd never go back.

 

[BacchusMarsh]

amex themselves offer this too (well they approached me to do it), i dont remember the % (but can look it up if people wanted to know), but think it was 2.5-3%, i didnt think it was worthwhile, even with the deductions

I'd certainly be interested to hear more.

 

[unfunkable]

The level of penny pinching at some small businesses amazes me. If your business can't survive on the less than 1% difference between Amex and visa/MC then you really have no place running it. I had some friends visiting from the U.K. and we got dinner at a restaurant on their way to the airport. The merchant refused to do a simple 50:50 split. Very embarrassing and they ensured I'd never go back.

spacebar
Agree 100%
Surcharge's leave a sour feeling. They may think they are saving 1% on getting the customer to pay - but they just need to lose a few sales a day, and the profit from those sales would cover the people who would use amex! Obviously not crunched the numbers but you get the metaphor. Another thing that ****s me is minimum purchase for using eftpos.

 

[Mr_Orange]

I tried to buy some breakfast at some take away shops in Sydney CBD this morning all wanted 2.5% extra for all cards. Looks like the incidence of surcharging is only going to get worse.

The level of penny pinching at some small businesses amazes me. If your business can't survive on the less than 1% difference between Amex and visa/MC then you really have no place running it. I had some friends visiting from the U.K. and we got dinner at a restaurant on their way to the airport. The merchant refused to do a simple 50:50 split. Very embarrassing and they ensured I'd never go back.

spacebar
Agree 100%
Surcharge's leave a sour feeling. They may think they are saving 1% on getting the customer to pay - but they just need to lose a few sales a day, and the profit from those sales would cover the people who would use amex! Obviously not crunched the numbers but you get the metaphor. Another thing that ****s me is minimum purchase for using eftpos.

It [surcharging] needs to be outlawed, fullstop.

 

[N860CR]

spacebar
Agree 100%
Surcharge's leave a sour feeling. They may think they are saving 1% on getting the customer to pay - but they just need to lose a few sales a day, and the profit from those sales would cover the people who would use amex! Obviously not crunched the numbers but you get the metaphor. Another thing that ****s me is minimum purchase for using eftpos.

These friends were leaving the country and had literally no AUD left.

I even put my foot down a bit with the cough and he just said "it's policy, just one of you can pay". I subsequently paid for dinner for two very embarrassed friends. He even had the nerve to turn the machine to me and say "this is where you enter the tip".

What does splitting a bill cost? Nothing I would assume. A few cents at most. This is in a country where dinner for 4 costs $200.

After spending a few weeks in South Africa with excellent service and staff who walk over to you with an EFTPOS machine when they bring the bill, I've realized what a backwater australia is becoming.

 

[dajop]

They may think they are saving 1% on getting the customer to pay - but they just need to lose a few sales a day, and the profit from those sales would cover the people who would use amex! Obviously not crunched the numbers but you get the metaphor. Another thing that ****s me is minimum purchase for using eftpos.

I always thought that for some small businesses surcharges aren't necessarily about recouping the fees, but instead to encourage less traceable cash payments.

IMHO anything that encourages the black economy, even if it just 2% surcharges should not be permitted.

 

[whatmeworry]

spacebar
Agree 100%
Surcharge's leave a sour feeling. They may think they are saving 1% on getting the customer to pay - but they just need to lose a few sales a day, and the profit from those sales would cover the people who would use amex! Obviously not crunched the numbers but you get the metaphor. Another thing that ****s me is minimum purchase for using eftpos.

Funny you mention the minimum eftpos thing.

a cafe in sydney sea bar

 

[yohy?!]

Aka "THEFTPOS"

 

[blackcat20]

What does splitting a bill cost? Nothing I would assume. A few cents at most. This is in a country where dinner for 4 costs $200.

Splitting the bill costs nothing (to them) if they are passing on the surcharge; refusing is just laziness. Tried to split a bill by four equal amounts, restaurant kept insisting it was too expensive. They didnt seem to get that if you charged 1% on the full amount, versus 1% on each quarter, it was exactly the same amount

 

[SOPOOR]

As much as I love amex cards now as a consumer. I used to have a small restaursnt which was not fine dining

As a business owner. I hated amex. To me it's still a credit card. And for them to charge double the amount of fees was ludicrous. Sure the rewards value was a bit higher but everything else was the same as a visa or Mc. To me it was price gouging.

As a result I got a amex less terminal. On the basis that
- everyone has a visa/MC as backup
- people are used to being told no amex or surcharge
- only once did someone say Oh had you accepted amex I would have eaten here and that was because it was corporate


At the end of the day maybe I'm biased but if a place doesn't accept amex it doesn't affect whether I go there or not. I consider it a bonus.

I am more annoyed at credit card surcharges on all cards at premium places such as sofitel hotel or vue du monde

 

[Cruiser Elite]

As I have posted previously - our business has never* and has no plans to ever offer AMEX facility. *We did indeed have an AMEX facility for 3mghs when Westpac Krisflyer Card first introduced offering double reward pts per $1 spent - i.e. 3pts / $1 - I had to milk that for all it was worth.

At that time we paid 2.4% + GST to AMEX but during the 3mth period not once did we process regular sales transactions. We cureently pay .65 merch fee on ALL Visa / Mcard and never have and never will levy surcharge. Not once in 17yrs have we lost a sale by not accepting AMEX - it just does not happen.

So yes some retailers do have valid reasons for not accepting AMEX - and at merch rate AMEX levy I can understand why struggling businesses or businesses operating on very tight margins want 3% or so for AMEX usage.

And not only small businesses will not accept AMEX - think Aldi and Costco. The world is an interesting place.

 

[Chicken]

Not once in 17yrs have we lost a sale by not accepting AMEX - it just does not happen.

Maybe you didn't even know you lost it, because people simply didn't come to you?

I used to, many years ago, like 7 or 10 years ago, ran a IT hardware business.

We were getting repeat purchase volume purchase from this customer, who was and still is, servicing many radio stations. They old me they bought from me because we were the only IT supplier who accepted AmEx (you know IT companies don't like credit cards).

We also got heaps of orders from Road & Traffic Authority of NSW. I was personally told because we took I can't remember AmEx or Diners (yes, we took Diners).

 

[unfunkable]

How do you know you haven't lost a customer? It would be a bit hard because they wouldn't be back and you wouldn't know!
You may not lose the first transaction, but what of repeat business?

When I moved into my business, I stopped diners and amex for about 7 years. It was only last year I reinstated it. Having jumped aboard the AMEX train, I would support the bank that has given me personally so much benefit.

I know one my regular's comes back to me now because I have amex (obviously a points hound ) - the profit I make from his business alone covers my monthly amex fees...we don't do a lot of amex per month.

edit: damn chicken beat me to it!

 

[Cruiser Elite]

I know we have not lost business because basically a 2 man operation for 17 years - we deal face to face with every customer who walks in the door - and 90% of customers are 50yrs and over. Our product range is somewhat unique and target marketed. It's all about knowing your customer base - and listening to them. One in a hundred might ask do you accept AMEX?

We have pretty high cash pmt component - many many debit cards - significant number direct deposits - money orders - rarely rarely are any of our customers 'FF pts chasers'. Nowhere on web site do we reference which CCs we accept - so often customers ask do you accept CCs? And lots older customers still pay cheques. Some of us do know our own businesses.

 

[Chicken]

many many debit cards - significant number direct deposits - money orders.

You have a very unique business! Money order!!!

 

[Cruiser Elite]

You have a very unique business! Money order!!!

Yep regularly we receive Money Orders in mail from customers ranging from $10 to $3,0000 - most here would not understand just how many Senior Australians and those with some 'challenge' still do not have a CC.

My first job when I return to MEL is drive one hour and drop off an item to an older gentleman and collect $2,500 cash - original price was $2,799 but we offer 10% RACV Mship disc and he was a nice old guy so I rounded down to $2.500 - FF pts? I don't think he has ever heard of them.

But this is getting a bit OT - fact of life not all businesss accept AMEX - your choice to shop elsewhere if you can source what you desire at price you want to pay - it ain't complicated.