American Express; a ripoff of retail merchants. New York, New York
"Air Miles" American ExCess Rips off the Retailers with a shoddy form of Bribery, called Air Miles!
Air Miles? Is it possible that this is The World's Biggest Ponzi Scheme or Scam, and that America's largest Banks as well as American Express (American Ex-Cess) are participating in it? I claim that it is. While they are scamming the Consumers, they are also Ripping Off the retailers, world wide.
While they are churning the waters to drown the consumers in in a sea of debt, they are taking the merchants who honor their cards to the cleaners as well. All merchants pay a fee when a Consumer hands them a credit card or charge card, a fee called the M.D.r. or Merchant's Discount Rate. That fee usually runs from around 2% to 4%, but American ExCess gets the highest amount of all, about 4%.
They encourage people to use American Ex-Cess cards through the use of a bribe, or by using bribery, and that is: Air Miles. If you are a Consumer, pay attention to this. If you are a Retail merchant, follow this and then...fight back. "Air Miles" is now considered a form of currency, and it is reported to be the second leading currency in the World today. It is said that there are between 7.5 to 9.5 trillion miles in "circulation" and that amounts to billions of dollars.
A goverment has some sort of control over the amount of money printed, but since Air Miles are issued by many different banks, some of them run by CEO's who seem to be more hucksters than astute financial experts, they have no controls and keep printing the money, keep doling out the miles, keep up the steady drum-beat for YOU the consumer to spend more of your money with plastic, and therefore increase the amount of business done on plastic for each Retailer.
And that's how BOTH of YOU get the SHAFT, get RIPPED OFF, get SCREWED. American Ex-Cess charges 4%, as I reported, but they make an agreement with big spenders to refund 2% of that amount to the Card holder. Great. They give a discount. The merchant is not allowed to discount in order to discourage use of the card, but American Ex-Cess shafts them by doing it themselves.
Now, that's a con job, isn't it? If you agree with me, write to Ken Chenault, CEO, at the above address and tell him how angry it makes you. Tell this Millionaire that he appears to be in the same league with guys you read about in the Business Section every day, a GREEDY GREEDY joker who'll do almost anything to make a buck, even resort to bribery in order to shaft the Retailers who make his business a success. And, when you address that envelope, remember, its American Ex-Cess. (or X-Cess, if you wish).
They use the 2% Refunds as a Bribe. They use the Air Miles as a Bribe. The Mafia used Bribes to overcome resistance to their schemes. But, this scheme is even smoother and more clever than anything devised by the hoodlums. This one makes every cardholder a participant in the bribery, because when they take the bait, everyone loses in the long run.
The dishonesty runs full circle. RIP OFF? Certainly. And American Ex-Cess is up to their armpits in the muck. Bribery? Check out your Dictionary; it is all spelled out. Write to Ken Chenault today. Let him know how you feel about it.
Howard
Solvang, California
2 Updates & Rebuttals
Rob
Tampa,Florida,
U.S.A.
Think again ..I have a GREAT relationship with AMEX as far as being a merchant with them goes...
#3Consumer Suggestion
Mon, December 23, 2002
I am the owner of a few convenience stores and gas stations... I have a GREAT relationship with AMEX as far as being a merchant with them goes... They are the LEAST expensive cards for me to accept, as far as an effective discount rates goes.. I currently pay 2.29% with NO transaction fee, as opposed to paying 1.62% with MC/Visa, PLUS a 25 cent Transaction fee. My average ticket is $12.22, and on that size of a transaction, I can save money by ASKING my customers to pay with AMEX, as opposed to any other card, including MC/Visa.. Maybe you people should know the facts 100% before opening your mouths..
AMex seems to set their rates for establishments based on the SIC code of your business... so, therefore there is some fluctuation between different business types! But, also. for a smaller business that does not do a wh ole lot of volume in AMEX, they do offer a flat rate program that, I believe is a flat $5 per month for sales of up to $1600 a month or so.....
retail manager
Philadelphia,Pennsylvania,
U.S.A.
I agree--don't accept or use American Express
#3Consumer Comment
Wed, December 18, 2002
I agree with this posted rant. When I managed a retail crafts gallery, we accepted American Express. I can't tell you how many times we tried to run someone's card, only to get back a "call" message on the credit card machine.
When we, the store, would call the credit card company--while the transaction was in process--American Express would ask to speak to the customer using our store phone. They would then "scold" the customer about their account, only to then authorize the charge.
This just slowed up the line and humiliated a customer, using the store's phone to do it. I vowed that I would NEVER get an American Express card, and I haven't. I think their tactics are shameful, and they put the retailer-who they are grossly overcharging in the first place-- in a position of alientating their own customers. Accept the charge, deny the charge, but don't play games, don't slow up a retail line, don't humiliate people in public, don't put the store in the middle of little mind games.