Credit Card Forum
+ Reply to Thread
Page 1 of 2 1 2 LastLast
 
  1. #1
    Centurion Member
    Join Date
    Dec 2010
    Location
    Florida
    Posts
    259

    Default Increase in Transaction Service Charge for Merchants?

    So I was getting my hair cut today and when I went to pay, I pulled out my Platinum American Express that I always use and was told that they would no longer take the card due to American Express pushing a LARGE increase in service charges to take the card. I have no problem using my Chase Hyatt Visa to pay but I like to use one card as much as possible.

    Has anyone else heard this excuse for the quick change in acceptance of their card?
    American Express: Platinum, Zync, Platinum Delta SkyMiles, Blue, Blue for Business
    Barclaycard US: iTunes Reward Visa, US Airways Premier World
    Chase: Sapphire Preferred, Hyatt, Freedom
    Citi Bank: Hilton HHonors, AAdvantage Platinum Select
    Discover: Discover it
    Other:Macy's Star Rewards, Target REDCard
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  2. #2
    Centurion Member
    Join Date
    Aug 2011
    Location
    Phoenix
    Posts
    902

    Default

    It could be that their current merchant agreement expired and Amex wanted them to renew at a much higher rate so they instead decided to cease offering Amex as an option to pay.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  3. #3
    Centurion Member
    Join Date
    Dec 2010
    Location
    Florida
    Posts
    259

    Default

    Quote Originally Posted by CC Deville View Post
    It could be that their current merchant agreement expired and Amex wanted them to renew at a much higher rate so they instead decided to cease offering Amex as an option to pay.
    That could be it. I find it ironic though that I use my Visa Signature which is usually costing them the same as American Express. I've done some work with merchant agreements when helping my mom out with a business and it amazes me how certain types of Visa and MasterCards charge more.
    American Express: Platinum, Zync, Platinum Delta SkyMiles, Blue, Blue for Business
    Barclaycard US: iTunes Reward Visa, US Airways Premier World
    Chase: Sapphire Preferred, Hyatt, Freedom
    Citi Bank: Hilton HHonors, AAdvantage Platinum Select
    Discover: Discover it
    Other:Macy's Star Rewards, Target REDCard
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  4. Centurion Member
    Join Date
    Oct 2012
    Location
    NJ
    Posts
    119

    Default

    The thing is most people carry either a Visa or MC even if they have an Amex. I mean Chase is the only bank that I know of that still offers an ATM only card. Even though a Visa Sig can cost the same as an Amex, you can't expect them to stop taking all Visas. It should average out in their favor anyway. So for a small shop to stop taking Amex, isn't a big deal.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  5. #5
    Centurion Member
    Join Date
    Dec 2010
    Location
    Florida
    Posts
    259

    Default

    Quote Originally Posted by Vermonster View Post
    The thing is most people carry either a Visa or MC even if they have an Amex. I mean Chase is the only bank that I know of that still offers an ATM only card. Even though a Visa Sig can cost the same as an Amex, you can't expect them to stop taking all Visas. It should average out in their favor anyway. So for a small shop to stop taking Amex, isn't a big deal.
    Agreed. I actually just got rid of my Visa Check Card and got a plain ATM card. After having my Check Card stolen and used, the ATM only card makes more sense since that's all I used it for.
    American Express: Platinum, Zync, Platinum Delta SkyMiles, Blue, Blue for Business
    Barclaycard US: iTunes Reward Visa, US Airways Premier World
    Chase: Sapphire Preferred, Hyatt, Freedom
    Citi Bank: Hilton HHonors, AAdvantage Platinum Select
    Discover: Discover it
    Other:Macy's Star Rewards, Target REDCard
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  6. #6
    Centurion Member
    Join Date
    Oct 2010
    Location
    CA, USA
    Posts
    196

    Default

    You know, I keep wondering how come payment service like Square hasn't reach widespread level among small business yet? It offers flat interchange fee across all cards. You don't have to pay other fees like monthly fee, statement fee, rental fee, etc.
    In My Wallet:
    Citi Forward (12/2010) | Citi TY Preferred (05/2011) | BofA Travel Rewards (07/2011) | Chase Freedom (11/2011)
    GECRB/PayPal (05/2012) | Discover it (07/2012) | US Bank Cash Reward (08/2012) | AMEX BCE (09/2012)
    Target (10/2012) | Chase Ink Classic (11/2012) | BofA Balance Rewards (04/2013)
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  7. #7
    Centurion Member
    Join Date
    Oct 2012
    Location
    NJ
    Posts
    119

    Default

    Quote Originally Posted by trumpet-205 View Post
    You know, I keep wondering how come payment service like Square hasn't reach widespread level among small business yet? It offers flat interchange fee across all cards. You don't have to pay other fees like monthly fee, statement fee, rental fee, etc.
    I don't really see Square as having a place in most small businesses. For our ski place 98% of the sales are tickets and rentals. But the rest are equipment sales and I think it looks bad to sell a $1,000+ set of equipment and pull out your iPhone to process the card. I think I would walk out if someone did that to me. I just think iPads and iPhones look fairly unprofessional.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  8. Centurion Member
    Join Date
    Oct 2010
    Location
    CA, USA
    Posts
    196

    Default

    I think you are over thinking. Mobile payment is growing, and will continue to grow as Google Wallet, Isis, and etc gain momentum. There is nothing status about it.

    Come to think of it PayPal has 5% + 5 cents plan for sub $10 sales. It might even work out for selling tickets.

    My local Starbucks and movie theater even begin to use iPad to process transaction.
    In My Wallet:
    Citi Forward (12/2010) | Citi TY Preferred (05/2011) | BofA Travel Rewards (07/2011) | Chase Freedom (11/2011)
    GECRB/PayPal (05/2012) | Discover it (07/2012) | US Bank Cash Reward (08/2012) | AMEX BCE (09/2012)
    Target (10/2012) | Chase Ink Classic (11/2012) | BofA Balance Rewards (04/2013)
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  9. #9
    Centurion Member Moneytalks's Avatar
    Join Date
    Feb 2012
    Location
    United States
    Posts
    423

    Default

    I think it will grow along with the "mobile" trend, think about it, you can close a sale more quickly and have less time before you rethink that impulse purchase Back to the OP, if they don't accept Amex anymore, you can always go somewhere else that does, then again, if you stay, it will keep your Visa active!
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  10. #10
    Centurion Member
    Join Date
    Oct 2012
    Location
    Texas
    Posts
    712

    Default

    Quote Originally Posted by Vermonster View Post
    I don't really see Square as having a place in most small businesses. For our ski place 98% of the sales are tickets and rentals. But the rest are equipment sales and I think it looks bad to sell a $1,000+ set of equipment and pull out your iPhone to process the card. I think I would walk out if someone did that to me. I just think iPads and iPhones look fairly unprofessional.

    Agreed. The first time I paid someone who was using one it was at a small coffee shop. It made me hesitant because I didn't want to put my credit card # into someone's phone. I'm sure it's legit or whatever but it just seems cheapy. I have several friends that are local business owners and they haven't mentioned anything about amex raising their fees, so I don't know if that's true.
    Amex Platinum
    Amex BCP 15K
    Amex SPG 5K
    Capital One Venture Visa Sig 7.5K
    Chase Sapphire Preferred Visa Sig 23.5K
    Credit Union Visa Platinum 10K
    Discover IT 5.75K
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

Advertising Disclosure: CreditCardForum is an independent, advertising-supported comparison service. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are authorís alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.