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.
