Can a UK Business Legally Enforce Amex Surcharges on Customers?

meer53

Stephen_C. wrote: »

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.

You're not supposed to know how much it costs. That's their business.if you're not happy to pay then don't use the card. Simple.

pheonix254

I use Amex frequently, and there are plenty of retailers that don't accept it or say there is a different surcharge for Amex than Visa/Mastercard. Perfectly legal so long as they're upfront about it, as far as I'm aware.

If I were to have one card in the wallet, it wouldn't be an Amex. marry it up with a Mastercard though and you're away.
(this is why Lloyds do the Avios duo - Amex for max points, Mastercard for when it doesn't work.)

Transformers

I don't get your problem.

There will be a product price and that is what the customer knows and pays. It should be the same regardless of the card used.

The charges between Amex and the merchant are business overheads and none of the customer's business. What next, wanting to know rent and rates etc?

Amex actively monitors merchants for refusing or overcharging to use the card. Use the concierge to take it up for you

reclusive46

Report it to Amex. I filled in the form on their website and got a response pretty quickly telling me that the business would no longer be surcharging Amex.

The link to the form is https://www316.americanexpress.com/iFormsSecure/un/iforms.do?cuid=rapid_en_GB&evttype=0&evtsrc=link&face=en_GB&prod=Rapid&todo=view&appsrc=IFM

thenudeone

The people saying that (effectively) it's up to the retailer / "they can charge what they want" are probably wrong (depending on the business - a few are exempt).

http://www.adviceguide.org.uk/england/news/news-archive/whats_new_april_13_payment_surcharges_credit_and_debit_cards.htm
and
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/175298/13-719-guidance-on-the-consumer-protection-payment-surcharges-regulations-2012.pdf

It is permissible to charge different fees for different payment methods provided the extra fees cover the extra costs involved. So if Amex charges retailers more than Visa, those customers can be charged more. And a retailer doesn't have to charge extra, so they may decide not to charge Visa customers extra (because, say, the charge is only 2%), but add the full 4% cost on for Amex customers. IMO this is acceptable under these regs.

chattychappy

thenudeone wrote: »

The people saying that (effectively) it's up to the retailer / "they can charge what they want" are probably wrong (depending on the business - a few are exempt).

http://www.adviceguide.org.uk/england/news/news-archive/whats_new_april_13_payment_surcharges_credit_and_debit_cards.htm
and
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/175298/13-719-guidance-on-the-consumer-protection-payment-surcharges-regulations-2012.pdf

It is permissible to charge different fees for different payment methods provided the extra fees cover the extra costs involved. So if Amex charges retailers more than Visa, those customers can be charged more. And a retailer doesn't have to charge extra, so they may decide not to charge Visa customers extra (because, say, the charge is only 2%), but add the full 4% cost on for Amex customers. IMO this is acceptable under these regs.

That's my understanding too. But the cost to the merchant might be slightly more than the 4% if, for example, they build in other associated costs of acceptance (eg an apportionment of any fixed monthly fees). Also the percentage is usually applied to the amount collected. So if an item has VAT on it, then this has to be allowed for - ie on a merchant fee of 4%, the price would have to be raised by 5% so that the merchant has covered his costs.

Stephen_C. wrote: »

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.

If you suspect the charges are excessive, you could always ask the merchant to justify them. They might be more than happy to tell you (particularly if they think it will put a customer's mind at rest or they resent being ripped off). You could contact the OFT or local trading standards.

meer53 wrote: »

You're not supposed to know how much it costs. That's their business.if you're not happy to pay then don't use the card. Simple.

Legally this kind of issue crops up quite a lot where a party needs information before knowing whether they have a legal claim. There are procedures to obtain disclosure (including from third parties) prior to potential litigation. Overkill in a case such as this, but courts do have the power to overcome commercial confidentiality.

Morglin

I'm currently using an Amex Platinum for everything (zero interest on purchases for 16 months, enhanced Cashback for 6 months, and nil annual fee for a year), and it has not ever been rejected by any retailer, online or with real shopping, nor has it cost me more to use.

Are some Amex cards different to others?

Lin

Aquamania

Morglin wrote: »

I'm currently using an Amex Platinum for everything (zero interest on purchases for 16 months, enhanced Cashback for 6 months, and nil annual fee for a year), and it has not ever been rejected by any retailer, online or with real shopping, nor has it cost me more to use.

Are some Amex cards different to others?

Lin

Have you ever tried to use it online or in store at Wilko?

Mallotum_X

Lots of stores refuse, B&Q is another larger one that wont take Amex due to high charges.

dzug1

reclusive46 wrote: »

Report it to Amex. I filled in the form on their website and got a response pretty quickly telling me that the business would no longer be surcharging Amex.

The link to the form is https://www316.americanexpress.com/iFormsSecure/un/iforms.do?cuid=rapid_en_GB&evttype=0&evtsrc=link&face=en_GB&prod=Rapid&todo=view&appsrc=IFM

And possibly the business ceasing to accept Amex at all?


I use Amex (through MBNA) for the 1% cashback - I've never been asked to pay any extra - it's either been accepted or I've been told 'we don't take Amex'. On the odd occasion where I've not found this out until the card's been in the machine there's been a 'ghost' transaction on the account, which is never confirmed.