AMEX not accepted or surcharge

[lovestotravel]

If you have the right Amex card, you can earn 3 MR points/$ spent at certain hardware stores - without any surcharge

Yes - I think I might change to the Platinum Edge credit card for that..

Need to crunch the numbers but I am sure my travel/restaurants spend would be more than groceries/petrol

 

[k3nnis]

Which hardware stores?

 

[burmans]

Which hardware stores?

Let me guess, that would be the ones you can get gift cards for at Coles or Woolworths. Bunnings for one!

 

[k3nnis]

Got it! My next lawn mower purchase lol.

 

[Moopere]

This only recently came into effect in October.

Amex must have really screwed over some retailers with the points change/merchant fee on the 1st October..

So what happened at the merchant end on 1/10? I know about the customer end changes, 0.5 P/$ etc, but I assumed the reduction in 'payout' to customers was because margins were slim due to a better deal for merchants ... now it seems that both merchants _and_ customers are being squeezed.

Are we sure this is an amex problem and not a response to the RBA's deliberation on merchants ability to "recover reasonable credit card cost" and perhaps a hint of the chance for a bit of profiteering?

 

[lovestotravel]

So what happened at the merchant end on 1/10? I know about the customer end changes, 0.5 P/$ etc, but I assumed the reduction in 'payout' to customers was because margins were slim due to a better deal for merchants ... now it seems that both merchants _and_ customers are being squeezed.

Are we sure this is an amex problem and not a response to the RBA's deliberation on merchants ability to "recover reasonable credit card cost" and perhaps a hint of the chance for a bit of profiteering?

Well nothing at the one retail business I am involved in, the merchant fee is still the same as it's always been

But I just find it strange that on the 1/10, two unrelated businesses decided to surcharge Amex as such a high rate!

I know it's a bit more admin work in some businesses to balance the books and it needs to be treated differently in various systems, but no Amex is still an issue for me and I'll shop at places that accept it over places that won't

Profiteering - Well maybe but I doubt many people would pay 4% extra simply to use Amex. Of course if you have a corporate/business card you might have too...

 

[Moopere]

Profiteering - Well maybe but I doubt many people would pay 4% extra simply to use Amex. Of course if you have a corporate/business card you might have too...

Yes, I agree. I find this sort of reaction from some businesses hard to understand. Surely you will accept almost no business via Amex with such a surcharge ... so why even bother maintaining the facility?

Its almost like some owners are trying to make some sort of point ... "see, no-one pays with amex" ... whilst not recognising why that might be?

Unless they have valuable corporate clients on their books who use Amex purchasing cards ... but then, surely you'd not want to annoy these clients with an obvious gouge? The thought process really is beyond me.

 

[lovestotravel]

Unless they have valuable corporate clients on their books who use Amex purchasing cards ... but then, surely you'd not want to annoy these clients with an obvious gouge? The thought process really is beyond me.

Exactly right!

I will now never shop at Jaycar electronics again, providing I can get the same good elsewhere for a similar price

I also won't be shopping at the building supply company I went to yesterday again, all other things remaining equal

 

[StevePER]

Let me guess, that would be the ones you can get gift cards for at Coles or Woolworths. Bunnings for one!

Great tip! I think I will need to go gift card shopping.

 

[zzyss]

Cityrail in Sydney accepts Amex (previously only at the airport)
I know that you can sign at the counter, but not sure if you must use a PIN at the vending machine

Huh. Wish I'd known that before I picked up my Monthly a couple of days ago.

 

[wxxnxs]

Huh. Wish I'd known that before I picked up my Monthly a couple of days ago.

You only get 0.5 point per $, as city rail is treated as government charge.

 

[yuhannl]

I find that even restaurants / cafes on Amex's list are starting to not accept Amex cards any more. e.g. Gloria Jeans, Perks Restaurant (at Westfield Garden City) amongst others.
In fact, the latter did accept with surcharge but stopped accepting at all after I raised it with Amex....

I did get a response from Amex on my enquiry but obviously can't do much about it...

It feels like Amex is in cost control mode trying to shore up their profitability, but don't know how they could survive if their merchant & membership base falls through the floor.

 

[Moopere]

It feels like Amex is in cost control mode trying to shore up their profitability, but don't know how they could survive if their merchant & membership base falls through the floor.

I had heard, as a background rumour, that Amex is struggling a bit with the worldwide cost of money. Money is somewhat difficult to obtain, and costs a lot, and Amex needs to fund our months spend which we then all go and pay off without adding interest charges.

This is usually not a big issue and fits their long standing model, but probably assumes money is relatively 'cheap'.

 

[prozac]

I am about to book a business trip to Tblisi (Republic of Georgia) and Amsterdam, total air cost around $11,000. My travel agent says he will need to pass on his Amex charges amounting to 3.09% because he makes only around 5% on the booking. Given the Holy Grail of accumulating points is travel incentives you would think Amex charges for travel agents would be more reasonable.

 

[Simo]

I am about to book a business trip to Tblisi (Republic of Georgia) and Amsterdam, total air cost around $11,000. My travel agent says he will need to pass on his Amex charges amounting to 3.09% because he makes only around 5% on the booking. Given the Holy Grail of accumulating points is travel incentives you would think Amex charges for travel agents would be more reasonable.

His margins sound really bad and I would be concerned when someone is make so little on sales. 3% for Amex is also very high.

 

[prozac]

His margins sound really bad and I would be concerned when someone is make so little on sales. 3% for Amex is also very high.

Maybe this is typical of airfares and he makes more on cruises and packages and insurance. Also it is probably a volume business. I have heard 3% odd is not untypical of Amex fees.

 

[Aussie_flyer]

Yeh 5% on airfares is usual for agents. However the airine may cover the amex fee for a set cost (eg qf intl is $30 on all intl fares). Some have no fees

 

[prozac]

Yeh 5% on airfares is usual for agents. However the airine may cover the amex fee for a set cost (eg qf intl is $30 on all intl fares). Some have no fees

Singapore have no card fee but in truth probably factor it into the airfare. Turkish Airlines do not cover the card fee.

 

[JohnK]

ConneXion in Brisbane accepts Amex again at the airport booth.

 

[Aussie_flyer]

Singapore have no card fee but in truth probably factor it into the airfare. Turkish Airlines do not cover the card fee.

You are incorrect. Singapore charges AUD25 for ex-Australia bookings. It shows as tax with code YR. If you are using a travel agent and paying by cash you can avoid this fee as the YR is removed for cash payments. Thai Airways is the same, the YR is AUD30, same as Qantas.