Post a new topic
    2 Replies Latest reply on Aug 22, 2009 9:21 AM by amspcs

    American Express to Announce Merchant Fee Increase

    amspcs Ranger
      According to a memo from a major national processor distributed to it's agent base on August 8, 2009,
      American Express will announce a fee increase for their flat fee program merchant base effective October 1st.

      Full details on our blog: http://www.merchantservices-help.com/blog/

      AMSPCS
      amspcs@juno.com
      www.MerchantServices-help.com
        • Re: American Express to Announce Merchant Fee Increase
          phanio Pioneer
          I think all processors will be doing this by year end. Also keep in mind that our congress is working on new rules to allow you and me to negotiate these fees.

          Business Money Today
          www.BusinessMoneyToday.com
            • Re: American Express to Announce Merchant Fee Increase
              amspcs Ranger
              Don't know about ALL processors, but certainly some will increase fees. Nothing necessarily sinister about that. As times go by, mostly everything goes up in price from year-to-year. Groceries? Utilities?
              Insurance? Gas???!!!!!! Retail goods? Why should processing services be any less suseptible to market forces than any other business sector?

              Also, I think you are confusing the 'players' in the processing business somewhat. The post about price increase involved American Express, which has nothing to do with Visa/VC, totally different industries driven by totally different forces. VMC rates are driven by Interchange, which Amex rates are not. The congressional actions you are reading about have to do with Interchange.

              And finally, merchants already have (and have always had as far back as I remember) the ability to 'negotiate' their Visa/MC fees. The trick is for the merchant to understand the concepts involved (Interchange, gross vs net processing, and many many others) in electronic payment processing before they attempt to negotiate pricing, which very few of them do. This allows some processors to capitalize on the ignorance of their merchants by playing numbers games with them and fleecing them even more without the merchant even realizing it. Perfect example: the merchant sales reps who go door to door doing what we call "T-sale comparisons" which supposedly illustrate how much the merchant would save by switching to their processing company. I'd guess conservatively 95% of the merchant who fall for this numbers game scam realize after-the-fact they have actually increased their processing expense, not saved a dime.

              AMSPCS
              amspcs@juno.com
              www.MerchantServices-help.com