amex plat charge cancelled =[

[foxypanda]

guys i honestly dont know where to vent my anger...
but here it goes
been green card member for 8 month, total purchases about 53k paid off everything on time recently got a plantium charge card
got it tues cancelled on the friday.

Our merchant facility at our business finally connected since july on friday and i thought it'll be a "hoot" to swipe my newly recieved plat charge card on it for a test, it was a 9k test but it was also to pay my business partner for some contracting work he's done which i didn't need to swipe through the merchant but since i just got the card thought it'd be fun. i dunno what i was thinking but was an error of judgement as the amex staff member said "error of judgement has consenquences" haha but unfortuanly it was a breach of policy so effectively immediately cancelled my 5 day old plat charge, my old green card i still had and fantastically my merchant facility at my business!. I admit the mistake but guess their policy was cough tight and strict..

all in all lesson learnt the hard way,

thanks for reading my lil rant
Cheers

 

[docjames]

Seems harsh after one transaction......

 

[lovetravellingoz]

Seems harsh after one transaction......

Though that one tx was for $9000..............

 

[Dave Noble]

It is quite clear in merchant rules regarding that activity and not surprising to have the card cancelled for the breach.

Just don't do anything with the green card through the merchant ( assuming the green card wasnt being replaced by platinum and implicitly cancelled )

At least they didn't penalise you with the merchant services

Dave

 

[Reggie]

Just don't do anything with the green card through the merchant ( assuming the green card wasnt being replaced by platinum and implicitly cancelled )

At least they didn't penalise you with the merchant services

Dave

I read the OP post that AMEX have also cancelled the green card and the merchant services.

 

[foxypanda]

green card replaced with plan charge...
all gone...
zip

i wonder how loong they blacklist me

 

[Dave Noble]

I read the OP post that AMEX have also cancelled the green card and the merchant services.

I misread it that they had only taken the Platinum away, oops. Ah well, that is an answer regarding a thread istr from a while back asking about the risks of doing this activity

Dave

 

[haydensydney]

Sorry, i'm not following exactly what happened here.... can someone explain this to me? Are you not allowed to make a $9000 charge on your credit card or something?

 

[mannej]

Sorry, i'm not following exactly what happened here.... can someone explain this to me? Are you not allowed to make a $9000 charge on your credit card or something?

It was on his own business' merchant facility, which is where the problem occurred.

 

[Flying Fox]

It was on his own business' merchant facility, which is where the problem occurred.

OK so I accept the fact that its an Amex rule and it was broken so the consequences were dished out.

However, can someone tell me what is the 'real' problem with this activity?

Afterall, Amex get their MSF and get paid by the card holder and the card holder gets some points (which have been paid for by the MSF fee).

I'm just can't see the problem.

 

[serfty]

$9000 on Plat card may earn, say, 13,500 MR points.

At, say, 1.5% commission, OPs business gets a remittance from AMEX of $8,865.

Now that $8865 redone can earn another ~13300 MR points, and gets $8732.

Do this again and another 13,100 MR points can be gained. So that's nearly 40,000 MR points at a cost of $400

To take this to the end could return nearly 900,000 MR points for that $9000.

If crediting to Qantas, that is enough for two first class ATW award bookings.

 

[Will]

$9000 on Plat card may earn, say, 13,500 MR points.

At, say, 1.5% commission, OPs business gets a remittance from AMEX of $8,865.

Now that $8865 redone can earn another ~13300 MR points, and gets $8732.

Do this again and another 13,100 MR points can be gained. So that's nearly 40,000 MR points at a cost of $400

To take this to the end could return nearly 900,000 MR points for that $9000.

If crediting to Qantas, that is enough for two first class ATW award bookings.

Don't forget the other cost - which is quite substantial - the timelag.

The merchant doesn't get paid instantly; ISTR reading it is over a month. To earn those 900,000 points, Amex would be holding onto your $9000 for over 5 years - making the true cost around $11,500 in today's dollars, PLUS the opportunity cost of 5 years without the $9,000, PLUS likely tax implications.

 

[lovetravellingoz]

I'm just can't see the problem.

It provides potential for fraud.

ie say the small business operator is struggling financially...and decides to bang through mutliple large tx as bogus purchases and then disappear...

Or if not to disappear may be tempted to run a bill that he has to default on...

 

[foxypanda]

I'm just wondering will this go on my credit report or anything...since technically I didn't miss any payments

 

[ChrisFlyer]

I'm just wondering will this go on my credit report or anything...since technically I didn't miss any payments

It will show that your account was "closed by issuer", which doesn't have *that* much influence, as you haven't missed a payment... but it's always better if it says "closed by customer" just in case a potential creditor is extremely picky - but it's unlikely to affect anything.

 

[JohnK]

However, can someone tell me what is the 'real' problem with this activity?

Very confusing.

 

[foxypanda]

Does the record ever get erased at Amex?? I heard from a friend who works there u get blacklisted for like 12 month before u can reapply anyone know I there's any truth in this?

 

[Dave Noble]

It will show that your account was "closed by issuer", which doesn't have *that* much influence, as you haven't missed a payment... but it's always better if it says "closed by customer" just in case a potential creditor is extremely picky - but it's unlikely to affect anything.

There is no reason why it would appear at all on an Australian credit report since there is no default on the account to be reported

Dave

 

[winfred]

Amex's stupid policy. The $9000 for 900k points is no bargain and I would love everyone to do it if I own Amex. Those points cost them a lot less than $9k.

REgarding ovetravellingoz's post for someone struggling financially and use the credit card to obtain cash, I can do it with someone else's merchant facility and achieve the same result. Amex always have the risk of default by the card holder.

Years ago I overpaid my amex account and got suspended. They said it is to prevent money laudering. what a joke.

 

[Danger UXB]

Hi foxy panda.
I've just picked up this thread. I did something very similar last year. Paid my wifes company(I'm also a director) about 10k on 3 occasions with greencard. Amex on 3rd occasion said no more son and stopped both plat credit and green, thankfully only till the debt was paid off in full. The supervisor obviously liked my 200k a year business and didn't cancel the cards completely though it looks like I could have lost both cards if they had decided to .
I go the bank route westpac do a good plat visa with amex linked and you can put points thru to SQ, JQ and I forget who else
Cheers DanerUXB