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.

Comments are closed.

Merchant Accounts | Credit Card Logos | Ecommerce Blog
Merchant Account Articles | Resources | Link-to-Us | Privacy Policy