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Stand your ground & you may lower your fees
Posted by: Curtis Stevens on November 30th, 2009

A Sydney company sees itself as winning a battle against Amex about the costs associated with accepting their card.  This company has 9 of the city’s most popular restaurants & bars and were seeing their biggest spending customers pay with Amex to earn points and other types of rewards.  Because of  some rules imposed in Australia, V/MC credit card processing are a fraction of what Amex are.  And because Amex isn’t issued by a bank, they were not subject to the new rules.  The company then became creative.  They started surcharging Amex users a percentage to use their card, but V/MC users did not have one.  I think this was a risky move, but only a few complained and most used a V/MC instead.  Amex then started steering its cardholders to other establishments.  Amex finally gave in and reduce their fees & the merchant removed the surcharge.  Amex then started promoting the merchant’s restaurants to cardholders with triple bonuses to make up for all the damage that had been done.

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