Can a UK Business Legally Enforce Amex Surcharges on Customers?

mjm3346

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 it's more than a 5% surcharge it's probably excessive, less than 3% and it probably isn't, what were they trying to charge?

Stephen_C.

mjm3346 wrote: »

If it's more than a 5% surcharge it's probably excessive, less than 3% and it probably isn't, what were they trying to charge?

One and a half per cent.

mjm3346

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

Amex caved in a class action in the USA and now allow surcharges.

mjm3346

Stephen_C. wrote: »

One and a half per cent.

That doesn't seem high, places that charge for other credit card use often charge around that or a bit more.

eskbanker

mjm3346 wrote: »

That doesn't seem high, places that charge for other credit card use often charge around that or a bit more.

Yes, but MC/Visa aren't being surcharged at all so the 1.5% is effectively the incremental difference between Amex and other cards.

reclusive46

dzug1 wrote: »

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.

I've seen this once or twice. Although my local garage keys in transactions (as they bring car back to your house after servicing) and I didn't know they didn't take Amex but the transaction went through though. The statement just said "New Merchant" They then had to setup a merchant agreement with Amex to get the money. It worked out well though as they now openly take American Express.

iAMaLONDONER

mjm3346 wrote: »

If it's more than a 5% surcharge it's probably excessive, less than 3% and it probably isn't, what were they trying to charge?

A newsagent in a busy tube station said it was a flat 60p charge for card usage.

One only wished to top up £4.40 and 60p would have been approximately 14%! So of course I just topped up a £5 at the ticket machine instead!

pooch

Stephen_C. wrote: »

One and a half per cent.

Shocking!

Have you considered getting your MP involved?

mjm3346

eskbanker wrote: »

Yes, but MC/Visa aren't being surcharged at all so the 1.5% is effectively the incremental difference between Amex and other cards.

Up to the retailer if they want to swallow the other card fees, that doesn't stop them charging up to the full cost on Amex if they wish, although 1.5% is almost certainly below cost.

AndyT678

mjm3346 wrote: »

Up to the retailer if they want to swallow the other card fees, that doesn't stop them charging up to the full cost on Amex if they wish, although 1.5% is almost certainly below cost.

But it's not really the retailers paying the card fees though is it? Ultimately it's us, the consumers who do. If everybody used Amex to pay for everything we'd just all end up paying 5% more for for everything we buy.

And what value do Amex add for their cut? Very little. The guy that makes something deserves to make a profit, so does the guy who shifts it around and so does the guy who sells it. But why do we need to give 5% to a guy who just takes your money and gives it to the retailer?

It's a crazy system in some ways!