AMEX not accepted or surcharge

[ChrisFlyer]

Same at rydges sydney airport. Absolutely disgusting!

Book via Qantas Hotels with AMEX, no surcharge and 3 QF ppd.

Then add your GHA number to the room or do a retro claim for an eligible stay - worked on my last stay there.

My partner also informed me that Lorna Jane has axed AMEX from all of their Australian stores and their website. They still accept PayPal online but she won't be returning there, despite being a 'Gold' member in their loyalty program...

 

[cove]

Reversing this you can get a 7.5% discount off the entertainment book purchase of Big W gift cards by email, use your Amex card then go to Pricepal to pick up 4.15% rebate when you buy Dan Murphy's specials.

 

[cmon0005]

Accor hotels surcharge 1.5% across the globe, but that's for all credit card transactions, not just AMEX...

I thought Hong Kong does not allow CC surcharges?

 

[Mr_Orange]

I thought Hong Kong does not allow CC surcharges?

Now that you mention it that might be correct. I don't remember paying a surcharge at Langham Place in HK, but I did pay one at the Langham Sydney!

 

[Dr Bob]

Just booked for lunch at Rockpool in Sydney next week.1.65% surcharge for all cards. Have multiple sites so not a small merchant. Imagine their merchant rate is better than this & have inflated it for Amex & Diners.

I'll be using my Amex Velocity Platinum at 3ppd for restaurant spend. Looks like surcharges are here to stay best to consider value of the point earn vs surcharge - era of the free kick might be coming to an end.

For the life of me I can't understand the thinking of the bean counters in these higher end businesses including 4 & 5 star hotels. The vast majority of their patrons pay with card.
So albyd would you not order the Wagu steak because it is $47 & you would only pay $46 & would you not take a room in the Sofitel or Hyatt because it is $275 & you only wanted to pay $270?
If these establishments would just add a few dollars & forget the surcharge I, for one, would be a happy camper & there wouldn't be a sigh at the end of the night when a surcharge suddenly appears requiring a recalculation of any tip. Am I the odd one out here as I would probably be happier to pay a few dollars more & no surcharge than to have a surcharge added at the end.

 

[bismarck]

For the life of me I can't understand the thinking of the bean counters in these higher end businesses including 4 & 5 star hotels. The vast majority of their patrons pay with card.
So albyd would you not order the Wagu steak because it is $47 & you would only pay $46 & would you not take a room in the Sofitel or Hyatt because it is $275 & you only wanted to pay $270?
If these establishments would just add a few dollars & forget the surcharge I, for one, would be a happy camper & there wouldn't be a sigh at the end of the night when a surcharge suddenly appears requiring a recalculation of any tip. Am I the odd one out here as I would probably be happier to pay a few dollars more & no surcharge than to have a surcharge added at the end.

I'm guessing it is because many who are using Amex's at these establishments are:
a) Using corporate Amex's and couldn't give a toss about a surcharge because they're not paying; or
b) Quite wealthy, and so are not price sensitive. They'll eat there whether there's a surcharge or not because they want to.

 

[Jacques Vert]

I'm guessing it is because many who are using Amex's at these establishments are:
a) Using corporate Amex's and couldn't give a toss about a surcharge because they're not paying; or
b) Quite wealthy, and so are not price sensitive. They'll eat there whether there's a surcharge or not because they want to.

In my experience, many of those who become "wealthy" do so because they manage their affairs carefully; so I am not sure that it is correct to say they would eat there anyway no matter what the cost/surcharge.

However, I do agree with your first point: when I was being reimbursed by my employer for accommodation costs, I was not concerned by the surcharge; provided it wasn't way over the top. Then again, my employer was quite happy to pay the 11% surcharge for CabCharge so I guess that is where they drew the line......

JV

 

[albyd]

For the life of me I can't understand the thinking of the bean counters in these higher end businesses including 4 & 5 star hotels. The vast majority of their patrons pay with card.
So albyd would you not order the Wagu steak because it is $47 & you would only pay $46 & would you not take a room in the Sofitel or Hyatt because it is $275 & you only wanted to pay $270?
If these establishments would just add a few dollars & forget the surcharge I, for one, would be a happy camper & there wouldn't be a sigh at the end of the night when a surcharge suddenly appears requiring a recalculation of any tip. Am I the odd one out here as I would probably be happier to pay a few dollars more & no surcharge than to have a surcharge added at the end.

I agree with you Dr Bob. A couple of dollars extra a night at a major hotel or on my Wagyu steak isn't the marginal determinant in making the purchase and spreading CC cost across everyone is a simple, effective solution. Surcharging was introduced to remove the "unfairness" to people who pay cash paying the same price as CC users whose payment cost more to accept (wonder how much it costs to send employees up to the bank with the day's takings and the cost of security for after hours takings). I don't think anyone has reduced their prices by the fraction CC acceptance costs increased overall costs by. Many businesses have chosen to pass increase their margin by adding a surcharge because they can. Another case of theoretical economics not applying to real world behaviour.

People generally don't pay with cash at upscale restaurants or major hotels so they take advantage of the situation by increasing their margins. Game has now become one of evaluating how much we will "pay" for points we used to get for "free". In many cases, we have to just live with it.

 

[Deleted member]

I have frequently made the point at restaurants that it is offensive to charge extra for CC. Why not put a price in that covers that? And offer a discount for cash. A more positive spin on an annoying problem

 

[zzyss]

I have frequently made the point at restaurants that it is offensive to charge extra for CC. Why not put a price in that covers that? And offer a discount for cash. A more positive spin on an annoying problem

It's purely a marketing tactic - the psychology of being able to display a lower price and get the customer to do the mental math themselves to work out the higher price usually proves too much for the average joe, and they just don't bother. Same goes for people bidding at auctions for goods, they never think about the 10 - 15% buyer's premium, which usually pushes the cost of the goods to almost the same, if not more than, the price you could normally get it for.

 

[Revolio]

It's purely a marketing tactic - the psychology of being able to display a lower price and get the customer to do the mental math themselves to work out the higher price usually proves too much for the average joe, and they just don't bother. Same goes for people bidding at auctions for goods, they never think about the 10 - 15% buyer's premium, which usually pushes the cost of the goods to almost the same, if not more than, the price you could normally get it for.

totally agree

 

[Revolio]

I'm guessing it is because many who are using Amex's at these establishments are:
a) Using corporate Amex's and couldn't give a toss about a surcharge because they're not paying; or
b) Quite wealthy, and so are not price sensitive. They'll eat there whether there's a surcharge or not because they want to.

spot on. without a) & b) there is no Amex.

 

[prozac]

I am looking at an item that comes with a 3 year warranty. Making the purchase using Amex will extend the warranty by 2 years. i.e 5 years total. The merchant charges 2.4% for Amex but nothing for Paypal.
If payment is made via Paypal are you still entitled to the additional warranty cover offered by Amex if your Paypal account is linked to your Amex card?

 

[bismarck]

I am looking at an item that comes with a 3 year warranty. Making the purchase using Amex will extend the warranty by 2 years. i.e 5 years total. The merchant charges 2.4% for Amex but nothing for Paypal.
If payment is made via Paypal are you still entitled to the additional warranty cover offered by Amex if your Paypal account is linked to your Amex card?

I have no earthly idea, but I'm guessing not.

Amex will want to collect the interchange fee in order to provide the cover.

 

[Chicken]

If payment is made via Paypal are you still entitled to the additional warranty cover offered by Amex if your Paypal account is linked to your Amex card?

Looks like it is covered.

Activation of Buyer’s Advantage Cover:
Cover is effective when You purchase Eligible Products on the American Express Platinum Card Accout

BUYERS ADVANTAGE CLAIM/EXTENDED WARRANTY CLAIM
1. Original receipts or proof of purchase
2. Original AMEX statement of purchase
3. If your item(s) was damaged, a quote to repair the damaged item(s)
4. Please include each Original Warranty Card for the purchased item(s)

That's it.

 

[zzyss]

Amex will want to collect the interchange fee in order to provide the cover.

I don't think Amex is losing out there. Paypal profits on the margin between what Amex charges them and the ~2.5% they charge to the merchant.

 

[kyle]

I am looking at an item that comes with a 3 year warranty. Making the purchase using Amex will extend the warranty by 2 years. i.e 5 years total. The merchant charges 2.4% for Amex but nothing for Paypal.
If payment is made via Paypal are you still entitled to the additional warranty cover offered by Amex if your Paypal account is linked to your Amex card?

I wouldn't risk using Paypal as you are one step removed from Amex.

 

[andye]

I am looking at an item that comes with a 3 year warranty. Making the purchase using Amex will extend the warranty by 2 years. i.e 5 years total. The merchant charges 2.4% for Amex but nothing for Paypal.
If payment is made via Paypal are you still entitled to the additional warranty cover offered by Amex if your Paypal account is linked to your Amex card?

I would think there would be a very easy way for a hoped-for warranty to knocked back. The Amex Statement will say you have paid a bill to Paypal not to the item's vendor.
It's in the nature of insurance companies to look for a way to wriggle out of a payout.

 

[prozac]

I would think there would be a very easy way for a hoped-for warranty to knocked back. The Amex Statement will say you have paid a bill to Paypal not to the item's vendor.
It's in the nature of insurance companies to look for a way to wriggle out of a payout.

I think you are a correct. Worth paying the fee (about $10) for 2 years additional insurance. Thank you everyone for your input.

 

[Chicken]

So what if the merchant only accepts PayPal as payment method? You guys suggest that insurance would just say no? It is not in the T&C in the 2 links I posted above.