AmEx can't understand refunds?

Boodysaspie

I recently bought a guitar online using my AmEx. I played it but it didn't "click", so I returned it for a refund.

The refund is listed on 11th Nov but it hasn't come off the statement balance?? My next DD payment will be for £300 (normal groceries etc) plus another £2700 for the guitar!

There's a "Live Chat" on their website, so on the 14th I asked what was happening. I was told that the system would sort everything out, and I would only be charged £300.

Early this morning I checked again, and the statement balance still doesn't account for the refund. Live Chat again, and this time I was told I have to

   cancel my DD,

   make a manual payment for £300, and

   set up a new DD.

"It is because of the account designed in such a way"

I'm glad I didn't trust them the first time

I've made a complaint, but I would be interested to hear of anyone else's experiences with merchant refunds on AmEx cards? They must handle hundreds of these every day, if not more, apparently without any problems.

Marchitiello

Many cards would not adjust DD for early payments or refunds before the DD is taken, so quite common if that it is indeed what you are saying (not sure form reading it) .

the way I understand the above post is that you had a statement balance of £3000 and a DD set for full balance payment, so £3000. Since the statement was
produced, you have received a refund of £2700 but this has not adjusted the amount that is due to be taken by DD. If this is what you are saying, then again, this is quite normal. Cards with dynamic adjustment of DD based on early manual payments or refunds are actually the minority. My old Lloyds allowed that, then it was changed to what Amex does, and then, if I am not mistaken, after I closed mine, changed again to dynamic DD.

Boodysaspie

D'oh!

Of course, you're right. I was misled by their first adviser:

"Merchant credits are not considered as actual payments so it is not updated on the account as payment. However, that doesn't mean you have to pay for it. It will be automatically adjusted on your next statement date. So you can deduct this amount from your total statement balance and pay only the left amount for this month".

He could have saved a lot of hassle if he had simply said that the refund came in after the statement date.

Boodysaspie

I've just had an apology from the complaints dept. The adviser will be shot at dawn and they've given me 2,500 points (or £25).

Case closed.