IHG (Amex) Credit Card surcharges.

[straitman]

I was informed on checkout yesterday morning that the AMEX surcharge has been increased to 3% wef 1 March.

I spent some time researching this and cannot find any reference to this in any T&C which all still mention 1.5% surcharge. I rang the hotel again today and they confirmed that the surcharge does exist and were surprised when I mentioned the lack of reference in the T&C.

NOT HAPPY :!: (another hotel CC ripoff)

I did try to give feedback via the IHG web site but the form repeatedly failed to submit.

The hotel was Holiday Inn - Melbourne on Flinders. My understanding is that this charge is from above hotel level and is to be charged across the board.

 

[serfty]

Looking at my booking emails it's noted at 1.5% - if they try to ping 3% at check-out I'll be brandishing a printout of my confirmation emails.

At the bottom:

"* Credit card payments relating to hotels in Australia incur a merchant service fee of 1.5% in addition to the total amount payable."

Also, looking up online:

...

Reservation Price Summary	View Price Details
Best Price Guarantee – find a lower price for our hotels elsewhere and your first night is free.
Average Nightly Rate	$ 150.00 AUD
Price for 1 rooms 1 nights	$ 150.00 AUD
	(Includes VAT)
Service Charge ‡	$ 2.25 AUD
Estimated Total Price ‡	$ 152.25 AUD

...

Please Note:

• Only the reservation as entered into and confirmed by our system will be honored. Any written or printed confirmation that has been altered may be rejected by the hotel.
• ‡ As taxes and service charges may fluctuate from the time a reservation is made until the actual stay and during the actual stay, the Total Price is an estimate. Estimated price includes Room rate, Extra person charges, Total tax and Total hotel charges.
• As exchange rates may fluctuate from the time a reservation is made until the actual stay, the confirmed rate is guaranteed in the hotel's base currency.
• Credit card payments relating to hotels in Australia incur a merchant service fee of 1.5% in addition to the total amount payable.

To my mind that means thay cannot ping you for 3% (but can for 1.5%).

 

[LovemyCC]

Unfortunately some businesses have a short term view of charging for credit cards fees. Do they honestly think that customers will pay by cash? And if so, would they want us to pay them thousands of dollars for the rooms. They could easily have a staff steal under the till or get robbed and the cost savings will be gone. Also security guards to remove cash from premises is not cheap either. Again short term cost cutting.

 

[lovestotravel]

Vote with your feet and go elsewhere!

 

[FuzzyAUS]

Vote with your feet and go elsewhere!

When I have devious thoughts, I think a big group should all stay and then pay in cash and cause an issue for them with the amount of cash they have.. do it a few times and make it public (yes I know that bit would be very bad), but might help them think a little differently..

Likewise it was my understanding (and I am a merchant too) that you could only charge a % that covers your cost and cant profit from fees... there is no way they are paying 3% to AMEX

 

[plugster2011]

Just checked my folio from IC Syd for my weekend stay (check out Sunday March 2).

Pinged me 3% for Amex payment on my stay. But I didn't pick it up and won't ultimately be on my tab. So unlikely to follow it up.

But something to keep an eye on for pre existing bookings.

Plugster

 

[lovestotravel]

When I have devious thoughts, I think a big group should all stay and then pay in cash and cause an issue for them with the amount of cash they have.. do it a few times and make it public (yes I know that bit would be very bad), but might help them think a little differently..

Likewise it was my understanding (and I am a merchant too) that you could only charge a % that covers your cost and cant profit from fees... there is no way they are paying 3% to AMEX

It amazes me that a business thinks there are no costs for accepting cash.

Cash goes missing, needs to be picked up by armed guards etc etc....

I doubt they are paying 3% as well, but I am surprised with the rates some merchants are paying to Amex

Some restaurants are being charged 4% along with some hotels, but a large chain should be closer to 1%

 

[straitman]

Earlier this evening I sent an email to the HI Melbourne on Flinders.

The following is the response which does little to inspire confidence:

Thank you for your email.

Our office is currently closed and will re-open at 9.00 am on Monday 4th March 2014.

For any urgent inquiries please feel free to contact our Front Desk team


I guess their calendar is different to mine :!:

 

[Flyabit]

Hiya also got hit today immediately sent off an email to both AMEX account manager and hotel concerned.

Confirmed all IHG Australian hotels and it is for diners and Amex but Amex confirmed that they have NOT increased their fees to IHG.

Cash for nothing and am sure business in Australia will probably just accep lt and keep going but this really poor form for brand loyalty.

 

[NM]

My check-out on 1st March from a HIX in USA had no credit card surcharge added to the bill. Payment was via Amex charge card. So Holiday Inn can do it for no additional fee in the USA, but need to charge 3% in Australia? Really? Pull the other one, it plays Jingle Bells. I think in Australia, they know that most business travelers are likely to be using either Amex or Diners and they don't care about paying a surcharge as its their company paying the bill. It would appear that their costs for Amex/DC processing have not changed between February and March, or even any time in the last 12 months. So this increase would appear to be a matter of grabbing more revenue from those they believe will pay it.

 

[JohnK]

A number of hotels have increased the surcharge to 3% in the past 6-12 months.

Most people pay by credit card. Why can't a business such as IHG absorb these fees in their rates?

 

[lovestotravel]

Same as a restaurant that has a surcharge for credit cards or Amex or Diner, that really annoys me and unless the restaurant is a stand out, it's rare that I will return!

Simply increase your prices by 1% for everyone and absorb the cost

 

[serfty]

Same as a restaurant that has a surcharge for credit cards or Amex or Diner, ...

But it has to be clearly advertised at the time of purchase commitment.

If you liked the restaurant enough to deal with the, say, 2% surcharge, but on presentation to pay you are told it now 3%, you wouldlikely be very annoyed (Not to mention such action is likely illegal).

The genesis of this thread is similar and I would be refusing to pay the additional on principle.

 

[plugster2011]

Had the surcharge adjusted on my Amex payment at Sydney IC on the weekend from 3% down to advised 1.5% from the booking confirmation (booking was made prior to March 1st).

Initially reception tried to say 3% is "just what it is now" before accepting my point that when I booked the confirmed surcharge was 1.5%.

Obviously they had some discretion to remove the massive $3.70 amount - only took a couple of keystrokes too. So can be done quite easily apparently.

Cheers

Plugster

 

[lovestotravel]

Had the surcharge adjusted on my Amex payment at Sydney IC on the weekend from 3% down to advised 1.5% from the booking confirmation (booking was made prior to March 1st).

Initially reception tried to say 3% is "just what it is now" before accepting my point that when I booked the confirmed surcharge was 1.5%.

Obviously they had some discretion to remove the massive $3.70 amount - only took a couple of keystrokes too. So can be done quite easily apparently.

Cheers

Plugster

It's the principle, not the actual amount, as I am sure you know

 

[serfty]

Looking at a recent booking email it has now changed:

* Credit card payments relating to hotels in Australia incur a merchant service fee of 3% for American Express, Diners Club, and JCB (except advance purchase rates) and 1.5% for other cards (and all advance purchase rates), in addition to the total amount payable ...