AMEX not accepted or surcharge

[whatmeworry]

Our visa /mastercard is 0.75%
Our Amex is 1.95%

You can't assume what a retailer is paying fee wise.

We weren't even invited into the American express shop local promotion recently.

Based on what people have said in previous posts the AMEX fee for their businesses is/was 1.5% with more fee reductions to come for most businesses. Plus this supermarket would have a high turnover for its size.

 

[perthjay85]

Based on what people have said in previous posts the AMEX fee for their businesses is/was 1.5% with more fee reductions to come for most businesses. Plus this supermarket would have a high turnover for its size.

We have 8 outlets on the same account that would easily have a higher turnover than a supermarket that's struggling.

Even at 1.5% it's still nearly double, but you still can't assume the fees a company pays.

 

[cove]

Most of our customers who pay with Visa or MasterCard use premium cards to get frequent flyer points. It is only since July 1st that those fees have been cut and the benefits have been reduced. Amex can do whatever they like with their merchants and it would be most unlikely that we could squeeze a lower rate than 1.5% from them this year.

 

[EestiTiger]

Very true. Occasionally, I have refused to pay the surcharge when it has been sprung on me but unfortunately I just accept it most of the time. My resolve is now stronger!

I have seen your resolve in person - indeed it is strong!

 

[Mr_Orange]

I have seen your resolve in person - indeed it is strong!

Believe it or not that was rare defiant stance. When it came to my car service I didn't even question it. I will now though.

 

[albyd]

Had breakfast this morning at a cafe that's customarily had the 3% Amex surcharge. Saw they had the Amex billfolds and still no sign that Amex is surcharged except when you pay.
They took Amex and no surcharge.
Looks like whatever Amex are doing is working. Hoping earn rates aren't cut as a result.

 

[foggy]

Had breakfast this morning at a cafe that's customarily had the 3% Amex surcharge. Saw they had the Amex billfolds and still no sign that Amex is surcharged except when you pay.
They took Amex and no surcharge.
Looks like whatever Amex are doing is working. Hoping earn rates aren't cut as a result.

I am worried that they will just devalue the pts, making bonus signups and my banked pts value plummet. Earn rate cuts wouldn't hurt as much because signup bonus can still be exploited by switching over to spouses card and cancelling your own. Also the "i'm going to cancel my card" loyalty bonus.

*fingers crossed for no devaluation.

 

[daft009]

To me it seems they are trying to increase their volume by cutting surcharge rates. Therefore hopefully no change to earning or devaluation

 

[coles525]

Believe it or not that was rare defiant stance. When it came to my car service I didn't even question it. I will now though.

I go to my local regular service provider, can't miss the surcharge warnings.

He never makes me pay it. Only the total rrp.

 

[Pleb Status]

To me it seems they are trying to increase their volume by cutting surcharge rates. Therefore hopefully no change to earning or devaluation

Although overall revenue may stay the same or be slightly higher (increased volume to offset the reduced fee charged by Amex), expenses may be significantly higher if Amex still pay out the same points/$ spent.

This change really only works if a small cut to the fee charged by Amex generates a significant increase in volume or the margin retained by Amex is significant.

 

[docjames]

Yep, we had visit from Amex people telling us we'd dropped from 1.51% (small business rate) to 1.5% as of 1 July with the promise of further drops later in the year.

That's a very generous reduction of them......

 

[cove]

Yes that is a very big cut. Actually 1.5% is a pretty good deal and may not last.

 

[whatmeworry]

Credit card fees should drop further September 1.

The ACCC is urging small business owners to start preparing for the ban on excessive payment surcharges that will apply to all businesses across Australia from 1 September 2017.
The new law limits the amount that a business can charge customers for use of payment methods such as EFTPOS (debit and prepaid), MasterCard (credit, debit and prepaid), Visa (credit, debit and prepaid) and American Express cards issued by Australian banks. It came into effect for large businesses last year.
“Small businesses that choose to impose payment surcharges should review their surcharge levels to ensure they are compliant when the ban starts applying to them in under two months,” ACCC Deputy Chair Dr Michael Schaper said.
“Businesses can only pass on to customers what it costs them to process a payment such as bank fees and terminal costs. For example, if your cost of acceptance for Visa Credit is one per cent you can only surcharge one per cent on Visa credit card payments onto your customers.”

Excessive credit card surcharge ban to start 1 September - Government News

 

[slinky123]

Credit card fees should drop further September 1.




Excessive credit card surcharge ban to start 1 September - Government News

and American Express cards issued by Australian banks.

I wonder if that means that non Bank issue Amex cards will still have a higher fee. I sure hope not

 

[albyd]

Amex cards issued by the big banks were an attempt by the banks to get around RBA regulation on Visa/MC. That's why the RBA has singled out those Amex cards for regulation (i.e. Same interchange cap as MC/Visa) but not Amex issued cards. Let's hope they stop there.
I'm not a merchant so can't confirm 100%. My understanding is that Amex merchant fee is the same regardless of the type of Amex that's being used. Just that with Bank issued Amex cards, they can't make any more from them than Visa or MC.

 

[Mattg]

I came across this two weeks ago when trying to book a Rex flight.

I was going through Sydney Airport anyway, so decided to try to book the flight at the Rex counter there. I was told that it was not possible to book a Rex Net fare at the airport, and that they could only sell me one of the more expensive fares! I asked if there was any possible way to book a Rex Net fare at the advertised price, to which I was bluntly told "no".

I believe this is illegal and complained to the ACCC. I did receive a response, although it wasn't overly helpful. (They seemed to agree that this might constitute drip pricing but just suggested I complain directly to the airline, and contact the Airline Consumer Advocate if I'm not satisfied with the outcome.)

I would encourage others to complain to the ACCC as well and then they might take action.

Well I submitted a written complaint to Rex and today I finally received a reply. They claim that the Rex booking surcharges are ACCC compliant because they are disclosed on each page where fares are given. Interestingly, they also claimed in their reply that Rex Net fares can be booked at the airport - which was not my experience.

 

[Chicken]

Well I submitted a written complaint to Rex and today I finally received a reply. They claim that the Rex booking surcharges are ACCC compliant because they are disclosed on each page where fares are given. Interestingly, they also claimed in their reply that Rex Net fares can be booked at the airport - which was not my experience.

It would be interesting to forward that to ACCC, and see if ACCC thinks buying plane ticket at the airport is an 'alternative' payment method ......

 

[Pleb Status]

I note that JB HiFi is still charging 2.65% for Amex....

It would be interesting to know how much Amex are actually charging them as one of the bigger retailers in Australia.

 

[whatmeworry]

I note that JB HiFi is still charging 2.65% for Amex....

It would be interesting to know how much Amex are actually charging them as one of the bigger retailers in Australia.

You can always buy JB GC at supermarkets.

 

[TomVexille]

You can always buy JB GC at supermarkets.

And pay using paypal if putting in a click and collect order