Can a UK Business Legally Enforce Amex Surcharges on Customers?

reclusive46

AndyT678 wrote: »

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!

To be fair to American Express, they do try to give back a little bit with their small business saturday and small business month promotions.

eskbanker

pooch wrote: »

Shocking!

Have you considered getting your MP involved?

Why, do they charge extra for paying by card too....?

planteria

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

an interesting point...but ive had some good cashback out of Amex over the years, so channeling spending via Amex can be a very MSE thing to do;)

JamTE

AndyT678 wrote: »

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!

I think you'll finder retailers have to pay to accept any form of payment, they are charged to bank cheques and charged for depositing cash as well as having to deal with the additional security concerns that comes with it.
As an Amex card holder, retailers need to hope that none of their competitors accept it either as I'd rather shop there. Luckily most of the big companies (and many smaller ones) accept it.


Anyway, If Amex is that bad, why is it the only credit card that Costco accept?

Aquamania

JamTE wrote: »

...Anyway, If Amex is that bad, why is it the only credit card that Costco accept?

Maybe because they are American too?

I wouldn't know. I don't spend money just for the pleasure of being able to walk into a store. Plenty of stores to choose from that don't charge to enter.

reclusive46

Aquamania wrote: »

Maybe because they are American too?

I wouldn't know. I don't spend money just for the pleasure of being able to walk into a store. Plenty of stores to choose from that don't charge to enter.

Costco actually gets a massive discount from Amex because they only take American Express. I know in the US they only pay 0.5% and its probably less here as merchant fees are higher in the US (Amex rips off merchants completely in the US, fees as high as 6 or 7% aren't unheard of).

Aquamania

reclusive46 wrote: »

...(Amex rips off merchants completely in the US, fees as high as 6 or 7% aren't unheard of).

Sounds like a bargain compared to some of the extortionate rates I've heard Amex charge some merchants here in Europe.

reclusive46

Aquamania wrote: »

Sounds like a bargain compared to some of the extortionate rates I've heard Amex charge some merchants here in Europe.

Oh I agree. Apart from in the UK, Sweden, Belgium and Germany, EU Amex rates are very high. This is mainly because of the target market though. In the above mentioned countries Amex is much more of a main stream provider, whereas in the rest of Europe most Amex cards are private banking credit cards issued by other banks (La Caixa in Spain for example).