AMEX not accepted or surcharge

[oz_mark]

If you pay cash you get a discount - that is what is in it for you. If you use a card, you get points but those points have to be paid for somewhere by someone, somehow.

oz_mark each of those merchants mentioned by me earlier in this thread are quite happy to give me the same price for credit card as if I was paying cash. Plus I get the credit card reward points as well.

They win by making a sale and I win by buying something that I want/need plus the reward points.

But are you actually negotiating a cash price with them (as your previous post implied) or are you accepting what's being offered? If you are accpeting what is being offered then those retailers are building it into the price for everyone.

If on the other hand you are negotiating a cash price, then cash should be how you pay it.

 

[JohnK]

But are you actually negotiating a cash price with them (as your previous post implied) or are you accepting what's being offered? If you are accpeting what is being offered then those retailers are building it into the price for everyone.

If on the other hand you are negotiating a cash price, then cash should be how you pay it.

With most the price is at face value. Places like Woolworths, Coles are not too keen on negotiating.

With places like Harvey Norman, Bob Jayne (tyres), motels, hotels I always ask what is the best price you can possibly give me, or I have a quote from so & so for this amount can you match it. Sometimes they say you need to pay cash for the best price but I say I will pay with Amex and if they want the sale most accept it. Fair or not fair I really don't care. Don't even care that I negotiated a "cash" price and ended paying with credit card.

That is business. It is bargaining. It is life.

About 4 weeks ago I sent an e-mail to riviera motel in adelaide (best western) about a 4 night stay next week. They quoted me $110/night and I did nothing about it. Last week I was looking on wotif and found the same room for $92/night. I rang riviera reservations and asked for a price and the lady quoted me $120/night. I made mention of the wotif price, not of the earlier e-mail, and she told me to hold on while she looked on the internet. Confirmed the price on wotif and said that I could have the room for $92/night plus QFF points x3 for accommodation, food and beverage bill. If she had not given me $92/night I would have booked with wotif and riviera would have had to pay a percentage to wotif so better for them if I book directly with motel.

 

[oz_mark]

With places like Harvey Norman, Bob Jayne (tyres), motels, hotels I always ask what is the best price you can possibly give me, or I have a quote from so & so for this amount can you match it. Sometimes they say you need to pay cash for the best price but I say I will pay with Amex and if they want the sale most accept it. Fair or not fair I really don't care. Don't even care that I negotiated a "cash" price and ended paying with credit card.

That is business. It is bargaining. It is life.

I'd hit you with a change request!

 

[aasz1978]

It's been said again and again....

The list of merchants accepting AMEX or accepting it with surcharges is getting more and more to the point that my expenditure with VISA/MC vs AMEX is like 70%-30% from 10%-90%.

JB Hifi is the latest merchant which charges about 3% for CC. It's only a matter of time that Coles/Safeway and all Petrol Station will do so.

If that happens, blame the RBA. Better still, blame RBA right now.

One of the stupidest thing I ever heard coming out from the mouth of a person who purported to be clever enough to claim to be a Governor of Reserve Bank said that with the CC reform, merchants will pay less on fees and prices will decrease as the result.

If I were a merchant, this reform will give me extra dollar and forget reducing my price for cash sales. I don't think when I shop at Coles/Safeway they will give me $5 off my groceries bill for paying cash.

I think this forum should have a list of merchants who don't accept AMEX or charge surcharges....

 

[auriga]

... and meanwhile, amex gets away with charging higher fees.

 

[Mal]

I don't believe Coles / Woolies will introduce CC/Amex surcharges in the near future.

My understanding is that they have extremely good merchant rates due to their massive CC throughput.

 

[oz_mark]

I don't believe Coles / Woolies will introduce CC/Amex surcharges in the near future.

My understanding is that they have extremely good merchant rates due to their massive CC throughput.

True. It was my understanding that Woolworths/Coles only began accepting Amex after they were able to negotiate a good merchant rate with Amex. I don't know what it is, but would expect that it is on a par with their Visa/Mastercard raters

 

[aasz1978]

It's a sensible argument but if the majority cc users are now using non-AMEX cards, there will be little incentive for Coles/Safeway to provide AMEX as a method of payment since AMEX would now be a minority.

I am not saying that's the case now but it's getting more like a horror story whenever I use AMEX, being told 3%, 5% or refused.

In the past, it's either accepted or not accepted.

I'd imagine CPA Australia may be reviewing the arrangement now.

 

[Mal]

And I believe Amex would want to retain the major retailers accepting Amex.

Amex may/may not really care about "joe the hardware shop" but when it comes to the big retailers, they probably have a big interest in retaining them...

I still stick by my comment about Coles/Woolies and CC's

 

[dajop]

What annoys me is the assumption that cash is "costless" transaction. What does it cost a business to handle cash? I've heard figures suggesting around 0.7% of a transaction cost. So with RBA's wonderful reforms they shouldn't be charging the whole merchant fee but just the differential. Huh!

I guess with some businesses cash is much much more preferable, but that doesn't have anything to do with merchant fees....

 

[Sheriff]

Yes, I agree with Mal that small business merchants would obviously be less valuable to Amex because they process a significantly smaller number of credit card transactions than big business retail chains like Woolworths, Coles, Harvey Norman and top end department stores like Myers & David Jones.

Therefore it goes without saying that big retailers, who generate a larger number of CC transactions, would obviously have greater negotiating power with Amex when it comes down to merchant fees.

So I believe big retailers have negotiated with Amex a merchant rate that is at least equal to that of MasterCard & Visa.

However as previously discussed I believe that all consumers are currently paying hidden credit card surcharges incorporated into the price of goods & services.

So I don’t believe the big retailers already mentioned will be openly passing on CC surcharges because these retailers currently mark up their stock by at least 300-500%. So it would be more beneficial for the retailer to continue to incorporate the CC surcharge hidden into the purchase price and pass it on this way.

The benefits of passing on the surcharge this way is that a single 3-5%surcharge can be easily incorporated into the purchase price of product which has been marked up by 300-500% , increased at any time without the consumer’s knowledge and consumers who pay cash will also be slugged. So there’s no escaping it !

As mentioned previously all consumers must pay credit card surcharges because it’s a user pay CC system.

Consumers can hit back by using their credit card purchasing power to negotiate with their banks to waive annual credit card fees.

 

[JohnK]

With places like Harvey Norman, Bob Jayne (tyres), motels, hotels I always ask what is the best price you can possibly give me, or I have a quote from so & so for this amount can you match it. Sometimes they say you need to pay cash for the best price but I say I will pay with Amex and if they want the sale most accept it. Fair or not fair I really don't care. Don't even care that I negotiated a "cash" price and ended paying with credit card.

That is business. It is bargaining. It is life.

I'd hit you with a change request!

And you have just lost the sale!

 

[Yada Yada]

That is business. It is bargaining. It is life.

This is what spending time in Patpong does to you. :shock:

 

[Sheriff]

A bit off the topic, but thought I’d mention this since we’re discussing Amex surcharges, I’m not sure if it has been mentioned before or covered in another thread.

Did you know that Amex charge a $30.00 late payment fee if you fail to pay the minimum amount payable, which is 3% of the closing balance, on your statement on the due date. I don’t know of any other credit card provider slugging cardholders this ridiculous fee!

What’s even more ridiculous is that even if you’re disputing charges that are equal or greater than the closing balance due on your statement, minimum payments still need to be made, or else your account will considered 30 days overdue and you’ll be slugged the $30.00 late payment fee.

If the minimum payment due on your account still remains outstanding, the account may be frozen until the minimum payment is made.

I would’ve thought Amex would be satisfied with charging 17.74% on purchases, cash advances and balance transfers, but obviously not, they want more & more & more & more…

 

[NM]

If my Amex was not accepted (or they charged a surcharge) at the following places, I would not retain it:

Supermarkets (Coles, Woolies etc)
Department Stores (KMart, Myer, Target, Big W etc)
Petrol Stations (normally use Shell/Coles Express or Caltex/Woolies with 4c off vouchers)
Large retailers (Bunnings, Harvey Norman, Dick Smith etc)
Restaurants/Accommodation etc

The places that don't accept it are in the minority of my regular spending. It would be nice if they did accept it, but I understand their issues and carry an alternate payment method for those time.

I would like to see government and large utilities accept Amex for payment

A bonus is that my kid's school fees can be paid with Amex with no surcharge.

 

[Sheriff]

NM,
Local government does accept American Express. As far as I know you can pay most Council rates over the counter at your local Council using your American Express card without incurring a surcharge.

Unfortunately my kids’ school doesn’t accept Amex for payment of school fees.

 

[oz_mark]

With places like Harvey Norman, Bob Jayne (tyres), motels, hotels I always ask what is the best price you can possibly give me, or I have a quote from so & so for this amount can you match it. Sometimes they say you need to pay cash for the best price but I say I will pay with Amex and if they want the sale most accept it. Fair or not fair I really don't care. Don't even care that I negotiated a "cash" price and ended paying with credit card.

That is business. It is bargaining. It is life.

I'd hit you with a change request!

And you have just lost the sale!

Fine. One bargains with a certain set of assumptions. If they are stated assumptions (e.g. I will pay cash), and then after bargaining and get to payment you want to change it, then maybe you are someone I really don't want to deal with. Its called ethics.

 

[JohnK]

Fine. One bargains with a certain set of assumptions. If they are stated assumptions (e.g. I will pay cash), and then after bargaining and get to payment you want to change it, then maybe you are someone I really don't want to deal with. Its called ethics.

I give up, you win.

I am unethical and you are a great businessman.

 

[JohnK]

That is business. It is bargaining. It is life.

This is what spending time in Patpong does to you. :shock:

I haven't spent much time in Patpong. It is a rip off.

Anyone that has visited Thailand knows that bargaining is part of life. All merchants have a calculator which is the bargaining tool. It is a nice game to play. You ask how much, they type in a cost, then it's your turn, then they type in a cost, then it's your turn until you reach a price somewhere in between. In fact if you accept the first price quoted to you then you are seen as weak. Most of the time do not pay more than 60% of the price first quoted to you, anything between 40%-60% of initial quote is acceptable.

I miss the place. I love bargaining them down that extra 10baht. :roll:

 

[cpl]

I would’ve thought Amex would be satisfied with charging 17.74% on purchases, cash advances and balance transfers, but obviously not, they want more & more & more & more…

Currently they offer BT transfers for 0% for 6 months. Like many other CC providers.