|Considering to drop American Express|
Considering to drop American Express
I didn't know until today, that if someone claims a charge to be fraudulent, AE will automatically chargeback the account. It doesn't matter if the ship to address is confirmed and you have proof of delivery signed by that customer, the chargeback still stands.
Sending proof of delivery to AE doesn't matter with them, they told me I had to deal with the customer directly or get my lawyers involved to resolve this. What a great way to get fee stuff, just claim fraud. First chargeback in years. Funny thing is, same customer placed another recent order with us that already shipped and I can't stop delivery. Yes. I'll will flag the customer as fraud but can AE really operate this way?
A few more instances of this and I will take AE off as a payment option. Just wanted others to be aware of this, after 5 years online, I wasn't aware of this. I understand this is part of doing business and I accept that but this is a warning to those not aware.
yes if you take a look in the e-commerce zone of this board, you will see a lot more information re: that company that you mentioned.
However, customers of that company tend to spend more money and are more loyal.
Some of the cons though - it is easier for customers to do a chargeback and usually there is not a time limit. I have see merchants get a chargeback from (that company you mentioned) from up to about twenty-four months. While the other card associations have time limits, they vary per issuing bank and if it is a credit card or debit card
|if someone claims a charge to be fraudulent, AE will automatically chargeback the account |
That's why I have an Amex. I don't have to argue with them.
|However, customers of that company tend to spend more money and are more loyal. |
Bingo. A platinum card from your local issuer is $0 and may (in this day and age) give you more benefits than the Platinum Amex.
I pay $400 a year for mine, and save for the occasional front-of-line ticket benefit or the once a year lounge access when I don't fly my regular airline, I don't really use any of the benefits.
But at the end of the day, it's never been declined, I've never had to pay for fraudulent charges, and my phone calls to them are answered within 30 seconds by a human who is empowered to actually solve my problem.
The same people that carry Amex are likely the same people you want shopping at your store. I use mine almost exclusively for both business and personal transactions, and I've been known to avoid restaurants locally that I know don't take Amex.
As a side note: one of the huge advantages of PayPal becoming so big as a transaction processor for small software merchants is that they all take Amex. That's cool. I find myself buying more $20 software here and there because I can use my Amex (whose numbers I have memorized) instead of being too lazy to go fishing for my Visa. True story.
|Sending proof of delivery to AE doesn't matter with them |
If you really have this, sue them or pursue collections. You are a creditor. Collection agencies will give them a hard time for 50% of the take. Or file in small claims court.
|What a great way to get fee stuff, just claim fraud. |
Not only is this very illegal, if you do this and it is discovered you have lied, you will never do business with Amex again. Ever. It's like people who try to get free stuff by charging it on their corporate card - who in the hell would ruin their careers for a set of patio furniture?
Chalk it up to bad luck and move on. Whatever you do, make sure you understand the implications to your business of no longer accepting Amex. To me, a habitual Amex user, someone that accepts Visa/MC but not Amex seems cheap and unprofessional.
|Not only is this very illegal, if you do this and it is discovered you have lied, you will never do business with Amex again. |
That's the whole point- AMEX doesn't care what its card holders do. In any dispute through AMEX, the customer is right, the merchant is wrong. Period. End of story.
(Perfect example- several months ago about $5,000 in charges were labelled fraudulent by one of our customers, because the manager paying the bills didn't recognize the charges. AMEX immediately absolved him of payment for them, issued new cards, and termianted our account- without any notice to us or chance to dispute the charges. We only had our account reinstated 2 weeks later because the card holder contacted AMEX (several times) to clear up the issue- AMEX didn't give a hoot for any documentation from us. Two months later we got a chargeback for $1700 of the charges because of AMEX's screwed up internal accounting. Three weeks later, we finally got our money back, but only becuase I went through the CUSTOMER side of the shop to get it resolved- the MERCHANT side refused to do anything to clear it up.)
AMEX is basically a license to defraud merchants. Which is the reason many merchants don't accept AMEX. Short-term, AMEX card holders may vote with their feet to the fewer and fewer merchants who continue to take the risk with accepting AMEX. Long-term, AMEX users will find they can't use it anywhere and AMEX will be forced to abandon their hugely anti-merchant stance. (At least we can hope.)
As a consumer, I use AMEX as much as possible to enjoy the highest cash back of all the cards I have and knowing that if there is any problem whatsoever with a merchant I can dispute the charge and expect to have a favorable ruling.
As a merchant, we now only accept AMEX from established customers (AMEX is no longer a payment option on our online payment form).