3% charge for using AMEX card

rfsteel

Last month I took out an insurance policy with a well know moddified insurance company, when paying by AMEX I incurred a 3% admin charge taking the policy total to £812.37.

This policy took effect on the 00:01 25/05/06

On the 24/05 I found a cheaper policy with another insurer so decided to cancel the original policy on 25/05 09:00 via the telephone.

I was told at this point that I would incur a £25 admin fee for the original policy, £25 for cancelling the policy, £26.25 for the underwriters admin fee, plus I would not get back the AMEX charge.

This left me with a total refund of £698.75 for a policy that was in effect for 9 hours.

After speaking to AMEX about the fact that I had been charged for using their card, they aggreed to refund the additional amount.

I went back to the insurance company to challenge their additional charges, to be told that I should have been told, and it's in the policy documentation. Told which I replied I wasn't, and not it's not explained in the policy documentation. After much pushing, and explaining to them that I had additional cover in place, they have aggreed to a FULL refund minus the AMEX charge.

Question is, it legal for a merchat to pass it's processing fee's onto it's customers ? Due the merchant get refunded the fee when processing a refund ?

I'm not too worried now that AMEX are covering the full amount, but it's the principle of the matter, that insurance companies make it up as they go along.