American Express surcharges dropping

[MikeG]

I was amazed yesterday when I got an email from Amex Merchant Services for my business, dropping the surcharge from 2.2% down to 1.5% - holy coughes!!!

 

[ChrisFlyer]

How nice of you to continue to surcharge...

 

[MikeG]

With the average purchase price being nearly $2000, surcharges are just a fact of life if you choose to buy with cc.

Expecting otherwise is just naiive.

M

 

[theblank]

I doubt this means AMEX is dropping its charges, but it means AMEX has dropped their charges for you. Probably because you have moved to a different tier.

 

[djchuckles]

With the average purchase price being nearly $2000, surcharges are just a fact of life if you choose to buy with cc.

Expecting otherwise is just naiive.

M

I disagree. They are a cost of you doing business. You don't charge an electricity surcharge or an internet surcharge or a wages surcharge.

Would you rather everyone paid in cash and then had the cost/hassle/security of having to bank loads of money each day? Accepting credit cards makes it easier for consumers, and drives business more revenue, yet they get greedy and try and get their customers to pay for the privilege!

 

[MikeG]

I was speaking to my CBA Merchant Services people, and they confirmed that Amex is slashing the charges across the board in part due to the impact the recent law changes have made to their business, especially through Amex partner cards (eg, through banks)

 

[MikeG]

Cash is my preferred payment method for my business.
Hence why I use POLi to facilitate bank payment.

 

[theblank]

I was speaking to my CBA Merchant Services people, and they confirmed that Amex is slashing the charges across the board in part due to the impact the recent law changes have made to their business, especially through Amex partner cards (eg, through banks)

Well knock me down with a feather! For news this huge I am amazed that the first announcement of it is coming from a guy who sells exhausts. You would think the blogoshphere would be all over it long before letters went out to merchants

 

[MikeG]

Well knock me down with a feather! For news this huge I am amazed that the first announcement of it is coming from a guy who sells exhausts. You would think the blogoshphere would be all over it long before letters went out to merchants

 

[burmans]

I was speaking to my CBA Merchant Services people, and they confirmed that Amex is slashing the charges across the board in part due to the impact the recent law changes have made to their business, especially through Amex partner cards (eg, through banks)

Yes, I would have thought that if everyone else is cutting surcharges, competitive pressure on Amex may require them also to reduce.

 

[yohy?!]

I have big caches of coins ready to cover the day I'm forced to use a business that gouges for using a card

 

[Timtammi]

I got the same email for my merchant account also. Nice surprise considering they have been charging me 2.6% up until now. We currently charge a flat rate surcharge for all cards although with this change we may be able to consider eating the cost. I know that soon we can't charge more Than its costing but I don't believe we do anyway. Most of the time we waive the surcharge anyway, only enforcing for those buying at discounted prices if they prefer to pay by card rather than eft.

 

[codash1099]

The association I do some volunteering for got this as well - a reduction from 3% to 1.5%.

I wonder how widespread this is. It would be nice to be armed with the knowledge when confronting a merchant who wants to charge me 5% for using AMEX.

 

[ftm]

Hopefully this is an across the board reduction. Would love to see ours fall. No email yet, but I'll sit in anticipation! Can I ask what industries the people/merchants that have had the reduction are in?

 

[Mr_Orange]

I was amazed yesterday when I got an email from Amex Merchant Services for my business, dropping the surcharge from 2.2% down to 1.5% - holy coughes!!!

How nice of you to continue to surcharge...

With the average purchase price being nearly $2000, surcharges are just a fact of life if you choose to buy with cc.

Expecting otherwise is just naiive.

M

I disagree. They are a cost of you doing business. You don't charge an electricity surcharge or an internet surcharge or a wages surcharge.

Would you rather everyone paid in cash and then had the cost/hassle/security of having to bank loads of money each day? Accepting credit cards makes it easier for consumers, and drives business more revenue, yet they get greedy and try and get their customers to pay for the privilege!

I couldn't agree more. If your business fails due to a mechant facility cost of a couple of percent, then your business model was wrong.

It won't be too long until cash disappears. It's use is already on the decline. The RBA should just grow a pair and ban surcharging outright.

 

[oz_mark]

It won't be too long until cash disappears. It's use is already on the decline. The RBA should just grow a pair and ban surcharging outright.

It was the RBA that enabled surcharging, and they have spend the best part of the last 14 years trying to figure out how to stop excessive surcharging. Can't see them going back on it now.

[Interesting thing: The limitations on surcharges by the RBA/ACCC only applies to designated cards - not to direct issue Amex cards]

 

[theblank]

With the average purchase price being nearly $2000, surcharges are just a fact of life if you choose to buy with cc.

Yep, this is standard, especially for B2B. Anytime I go to purchase from a small business I expect to be charged especially if Amex. Not everyone can negotiate merchant fees down to almost nothing like Coles. These things will change soon though.

 

[djchuckles]

Apparently the reduced merchant fee is only being offered if businesses choose to either remove surcharge or long it with visa/mc rate

 

[MikeG]

Hopefully this is an across the board reduction. Would love to see ours fall. No email yet, but I'll sit in anticipation! Can I ask what industries the people/merchants that have had the reduction are in?

Automotive parts

 

[MikeG]

That is correct - and they are being a little cheeky as this is completely unenforceable IMHO. Amex has been trying the same thing for the past 6 or so years that I've been dealing with them... I used to split the difference between the two fees, and charge that across the board...

Luckily for me, my MC/Visa and Amex are now pretty much the same surcharge anyway...