Can a UK Business Legally Enforce Amex Surcharges on Customers?

Stephen_C.

If a business is surcharging Amex customers only (not MasterCard or VISA users), is this legal?

I'm sure I read about excessive surcharges no longer being allowed. But it seems impossible to find out the exact amount the merchant itself is being charged by Amex, so it's hard to tell what a fair surcharge is.

prowla

It's up to the customers how they choose to pay.

Aquamania

Stephen_C. wrote: »

If a business is surcharging Amex customers only (not MasterCard or VISA users), is this legal?

I'm sure I read about excessive surcharges no longer being allowed. But it seems impossible to find out the exact amount the merchant itself is being charged by Amex, so it's hard to tell what a fair surcharge is.

Amex are renowned for charging sellers a heck of an amount.

Hence, why many retailers refuse to accept Amex, or in this case apply a surcharge.

Furthermore, according to the UK American Express website, you must apply to them to be able to accept the card at your business in the first place. They charge for that too.

Thrugelmir

AMEX charges to merchants historically were often 4% and above. Hence the reluctance to offer as a payment method.

Stephen_C.

From 6 April 2013 the Consumer Rights (Payment Surcharges) Regulations 2012 say that traders mustn’t charge you more than it costs them to process the payment.

I suppose my question is: how am I to know what it costs them to process the payment?

How do I know I'm not paying an excessive surcharge and being ripped off, seeing as it varies from one merchant to another.

Thrugelmir

Stephen_C. wrote: »

How do I know I'm not paying an excessive surcharge and being ripped off, seeing as it varies from one merchant to another.

Merchants will be on different fee rates.

Why pay with AMEX at all?

Stephen_C.

Thrugelmir wrote: »

Merchants will be on different fee rates.

Why pay with AMEX at all?

To earn more rewards and hit spending targets!

GRM

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/175298/13-719-guidance-on-the-consumer-protection-payment-surcharges-regulations-2012.pdf

Lots of details. If it's a small or new business they can legally charge what they like until 12 June 2014.

Aquamania

Stephen_C. wrote: »

To earn more rewards and hit spending targets!

I'm not sure a spending target is appropriate for any MSE'er to have, is it?

:huh:

The biggest reward you'll ever get is not to spend the money in the first place

InsideInsurance

GRM wrote: »

Lots of details. If it's a small or new business they can legally charge what they like until 12 June 2014.

Not exactly, certainly for Visa and Mastercard the network rules are that you cannot profit from surcharges. So it would be a breach of contract rather than "illegal". That said, they seem quite happy to turn a blind eye.


Never been close enough to AmEx in that way to know its rules. Certainly they dont typically like businesses differentiating them from other cards but again for the right numbers anything is acceptable.

guesswho2000

Aquamania wrote: »

I'm not sure a spending target is appropriate for any MSE'er to have, is it?

:huh:

The biggest reward you'll ever get is not to spend the money in the first place

They probably mean a target on a particular card to hit a bonus.


Such as the Amex Gold which provides 20k bonus MR points on £2k spend within 3 months of account opening. If you're going to spend the £2k anyway, might as well do it in the most rewarding way.