AmEx merchant chargeback policy unfair for businesses

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MAXIMLIFE
 
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AmEx merchant chargeback policy unfair for businesses

Postby MAXIMLIFE » Wed Oct 09, 2013 3:26 pm

As a small business owner, AMEX sucks!!! They protect the consumer, but not the merchant account.

This is what has happened to us: A client purchased a significant amount of supplements from our nutrition and wellness store back in March. About 8 weeks ago, I received a chargeback notification, then next day my account was debited for the full amount of the purchase $4,600.

I sent the dispute via fax and to my surprise I got another debit on my account - $4600. I called and called and called and yelled and screamed until someone from Intuit by the name of Swati decided to help. She got my money back into the account Friday, Oct 8.

Well, to my surprise I check my account this morning and another $4600 is gone. At this time this is called STEALING, don't you think? And what can I do about it, who protects me?


Reclusive46
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Postby Reclusive46 » Fri Oct 11, 2013 12:49 pm

What was the reason for the dispute? As the person who manages the dispute for my wife's business, I've never lost an Amex dispute, I wish I could say the same for Visa and MasterCard transactions processed through her acquirer.
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whit
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Postby whit » Fri Oct 11, 2013 2:56 pm

I'm curious as well

Amex is very strict with its policies (IMHO) with certain things

When I worked retail we could not do a charge send (essentially same as web orders) over xxx amount (I believe it was a few hundred, I want to say 6, but can't remember) unless we had the billing address and the shipping has to be same as billing

We are also required to be very diligent when it comes to Amex charges in the store. We always ask for ID (MC/visa doesn't require so if the card is signed) and when we swipe we make sure that the last four digits match (in case they did a swap with the magnetic stripe and/or tampered it in any way)

I am sorry to hear your frustrations, it's always difficult especially when it's a high amount like that

DoingHomework
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Postby DoingHomework » Fri Oct 11, 2013 3:00 pm

It sounds like your merchant bank is Intuit. I have no experience with them but I will say that I would never sign up with them. They are about volume rather than service. It is worth it to work with a merchant bank that will stand up for you and give you good service when you need it. When I call my merchant bank service I get a human right away who has always worked very hard to do whatever I needed. I have never had a dispute though.

My initial reaction to your post is that something sounds fishy and that might be why Amex immediately sided with the consumer. A purchase of $4600 from a supplement store seems unusual. Was this for products or did they sign up for some sort of subscription or service that you billed them up front for? If you sold them an up front service then they might have just called AMEX to cancel. If they had trouble reaching you then AMEX will often let them just cancel the way they did.

Can you tell us more details of the transaction? What is the basis for their dispute?

DoingHomework
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Postby DoingHomework » Fri Oct 11, 2013 3:05 pm

whit wrote:Amex is very strict with its policies (IMHO) with certain things

When I worked retail we could not do a charge send (essentially same as web orders) over xxx amount (I believe it was a few hundred, I want to say 6, but can't remember) unless we had the billing address and the shipping has to be same as billing


Those are not AMEX policies. Those are set by the store you worked for. I process cards all the time with different shipping and mailing/billing addresses. There are also not specific limits (except the consumer's credit limit) per se. There are "velocity" limits for the merchant. There are also different fees depending on how the card is processed. Your store probably wanted to save on fees by making sure that large charges were done at the lowest possible fee.

whit
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Postby whit » Fri Oct 11, 2013 9:02 pm

Maybe,

We get charge backs on a regular basis

And because our product average price point is around 300, with items as cheap as $50 to high as $20000+

It just makes sense that that's what the company policy sets for charge sends

But I know for a fact Amex does require id and mc/visa only needs the sig signed in back

It's been a few years since I've worked retail but having had to call and get authorization code (verifying billing addy on cc manually as well as through the pos system)

I've talked to reps consistently



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