Amex cashback scam!!

td_007

Dave101t wrote: »

why are you expecting cash back for buying anyway? surely anything in this regard is better than nothing. rounding down means your losing maybe 1% of 1%. not exactly enough to pay the mortgage. i have this card btw, quite like it

I expect it because that is the deal - I spend I get cashback

IWantToBeFree_2

td_007 wrote: »

It is the customer's money - the reason I use this particular card is because of the cashback and any manipulation that affects the cashback directly reduces the money I get. There has to be a mindset change where cashback is not considered as a goodwill payment but a part of binding contract with credit card where you spend, you get cashback. Same as you don't pay, you get hit with fees/interest etc.

That binding contract sets out how they calculate cashback, so tell us again how you think you have lost out?

td_007

IWantToBeFree wrote: »

That binding contract sets out how they calculate cashback, so tell us again how you think you have lost out?

As I have pointed out in my previous post there is not mention of cashback being calculated on individual transaction basis. The impression given is that the cashback will be calculated on aggregate amounts which is intuitive, rational and logical.

Do you think they would calculate interest on individual transaction, round them down and then send you the bill?

By this simple yet clever way Amex are effectively reducing the amount that the customers should receive and customers on the other hand, thinking that they are getting something for nothing fail to even notice it let alone question it.

p00hsticks

td_007 wrote: »

By this simple yet clever way Amex are effectively reducing the amount that the customers should receive and customers on the other hand, thinking that they are getting something for nothing fail to even notice it let alone question it.

I think you'd have to be pretty unobservant not to notice it - if you use the online service then when you look at the cashback option it quite clearly shows it to you transaction by transaction (for the last twelve tranactions). And every paper statement gives the amount of cashback earned that month, so again it's quite clear if you've got multiple transactions that it's done on a transaction by transaction basis rather than the total.

mrposhman

td_007 wrote: »

It is the customer's money - the reason I use this particular card is because of the cashback and any manipulation that affects the cashback directly reduces the money I get. There has to be a mindset change where cashback is not considered as a goodwill payment but a part of binding contract with credit card where you spend, you get cashback. Same as you don't pay, you get hit with fees/interest etc.

Please tell me how its the customers money?

Its a REWARD provided by Amex for using their card. None of this is YOUR MONEY until they credit it to you.

Doesn't seem to be a scam here, just you who doesn't appear to know how it works.

lisyloo

Hi td,

Why don't you make a formal complaint and then take it to the ombudsman.
It will take a while, but a test case could have big implications.
Please keep us updated.
However be aware that if there is only "so much" money to go round then the implications could be reduced cashback e.g. 4%.
If you think of the unfair charges that is going on now. Ultimately the billions lost have to be couped somewhere and it might mean the end to free banking.
Some might think that's fairer.
All I'm saying is "be careful what you wish for".
If you did start a test case then the result may not be what you want.
Many people may be happy with very slightly reduced cashback.

Tozer

lisyloo wrote: »

Hi td,

Why don't you make a formal complaint and then take it to the ombudsman.
It will take a while, but a test case could have big implications.
Please keep us updated.
However be aware that if there is only "so much" money to go round then the implications could be reduced cashback e.g. 4%.
If you think of the unfair charges that is going on now. Ultimately the billions lost have to be couped somewhere and it might mean the end to free banking.
Some might think that's fairer.
All I'm saying is "be careful what you wish for".
If you did start a test case then the result may not be what you want.
Many people may be happy with very slightly reduced cashback.

I think going to the Ombudsman over this would be extremely unfair on Amex.

They have, over the years, provided a consistent cashback policy and it is extremely annoying and frustrating that the OP who very clearly doesn't understand the scheme is now making a fuss about a few pence.

American Express were instrumental in actually bringing reward schemes to their members many years ago.

Sounds as though the actions of OP making a fuss about nothing could actually bring about the end of schemes like this.

Seems to me to be biting the hand that feeds you.

td_007

mrposhman wrote: »

Please tell me how its the customers money?

Its a REWARD provided by Amex for using their card. None of this is YOUR MONEY until they credit it to you.

Doesn't seem to be a scam here, just you who doesn't appear to know how it works.

I do not understand this. Are you saying that if Amex wrote to you tomorrow saying that it has decided no longer to "REWARD" you then you are happy to walk away from your accrued "REWARD" with a shrug and "oh well"?:rolleyes:

ILW

I cannot see how the amount "lost" could exceed 1p per transaction (I am happy to be corrected). So I suppose if one were to really hammer the card you could be out of pocket by 10p per week. It would keep me awake at nights, the scamming, rip off merchants.

td_007

I can see two clear thoughts going on here:
1. its just a few pence and so cannot be bothered
2. lets not rock the boat or we will lose a good thing we have

Clearly, there is limited questioning on lack of transparency and clarity of the whole process and hence Amex can claim to give a 1% cashback when defined in a limited narrow context. Is Amex 1% cashback equal to CitiShell 1% cashback? Clearly no.

A lot of effort has gone into providing more clarity to customers - gross & APR rates, ways in which typical rates are advertised etc. It is upto the customers to try and influence clearer advertising and claims.

And, I do not think any of the "good" things are going to go away simply because bussiness have to find ways and means to attract customers. For eg. the 0% purchase/BT deals are recent innovations and there will be more.....