American Express Membership Rewards - AmEx declining charges for no reason

I recently got a SPG AMEX card and have been an Amex Green cardholder for the last 6 years.

When I started using my SPG Amex card more regularly, I noticed it was getting declined on my larger purchases, even though these purchases were well below my credit limit. It even got declined for a $12 charge at a wine shop but was approved an hour later for $49 at Wal*Mart. Go figure...probably their fraud detection system or something...I would pull out my Visa or my Green Amex and it would work fine.

So anyways, I called them up to ask what was going on and why these charges were being declined. The lady on the other end was very rude and said "I don't know - if the system decides to have a merchant call for authorization, they have to call in."

So I told her that I realize that it's a new card and you probably don't know my charge patterns. However, since I am a regular Amex customer for 6 years, the phone rep could look at that account to see my patterns and pre authorize a higher charge. She said "I can't do that. The system controls everything."

She said that if a charge is referred in for merchant auth, the merchant is obligated to call. I told her to come back to the real world. When a charge is referred, the merchant asks you if you have a Visa instead. They DON'T manually call into Amex for an Auth. They don't make a distinction when your credit card is referred for manual auth. They just come back and say it was declined.

So I guess what I am saying is that despite calling in to say that you will be going to Restaurant X and making a charge for $YYY, they still cannot pre-authorize you. You will still run the risk of the waiter returning and asking you for another card.

I am starting to consider cancelling all my cards with those dumb idiots.

On top of all that, the rep I spoke to ended up canceling my card! I guess I pissed her off by persisting. I had to call and have the card reactivated.

Interesting story. Over the years, I, too, have had some strange charges denied. Most of the time, Amex later denied that they declined anything. On one occasion, I was transfered to security for the 3rd degree (or else they would cancel my account). Since my credit is perfect, none of these events could be my fault.

I think we have to accept that Amex is a bunch of screw-ups and not let this get us down too much.

Sad but true! http://www.flyertalk.com/forum/frown.gif I and my wife both also had a few simlar problems and we are long time Platinum Card holders. http://www.flyertalk.com/forum/frown.gif

One day I will cut up all my plastic and go to Greenbacks. I hear they are accepted everywhere

I am a big fan of AMEX. However, if they started rejecting $14 dollars charges, regardless of the reason, I would cancel my accounts immediately. It would seem that your next step is fairly obvious...

juanveldez: It my suprise you, but no merchants in the near vicinity of where I live accept greenbacks. http://www.flyertalk.com/forum/wink.gif

Nick

I'm long time Platinum cardholder in France, and no charge was ever declined by Amex.

I have also a co-branded Amex/Air France card, and a charge of 50 DM (approx. $22) was declined two years ago. I used my Platinum card instead !
I called Amex, and they said, the card was rejected due to "security reasons".

I think the reason was, that I didn't use the co-branded card for a long time, and the "link" to my Platinum card has not been used by the system for pre-approval...



[This message has been edited by ahrz (edited 08-10-2001).]

When I began using my SPG card I had the same situation, however, the charges were not "declined" but the code was that the merchant needed to call in for authorization. Once the merchant calls then everything was OK.

When, in my opinion that was NOT OK, as I have been a member for 17 years, and have made multiple 30-50,000 charges on my Platinum without a hitch. When the third merchant received the "Call In" message, I got on the phone and told the rep that I would be cancelling all of my accounts immediately if they did not flag that I am a long-time member and that they easily had access to my spending and payments habits, regardless of which of their OWN cards I was holding. It is NOT out of the CSR's hands as that is her job, so don't accept that answer. If she personally doesn't have the authority to do it go to her boss.

I never had an issue after that time, even using the card internationally.

What pisses me off is when the merchants get a "Call in" message but are too lazy to do that and just tell you the card was flat out declined instead ...

This is not exclusive to Amex, who do less of it than most. Seems the system today has been refocused on two things. First is identity theft. Secondly, the card people are looking for people who have been big spenders because of high current income, or reimbursement from third parties such as employers, who may have run into difficulty, or lost their jobs. When you set the paramaters for that, these kinds of things happen. In the case of Bank cards, its gotten to the point that if you go abroad on a trip, and don't tell them, after a couple of charges they cut you off. The card people created the problem by floating so much plastic, but as usual, the user gets it in the shorts.

juanvaldez, I had the exact same experience last month with my new Blue Card, after having been a Gold Card holder with no problems.

I did get to the bottom of it when a merchant had to call AE for a verbal authorization. I asked to speak to the AE rep who told me the following: Some merchants have a higher fraud rate than others so AE is cracking down on it. In other words, a declined charge may be more of a reflection of the merchant's reputation than yours. Nevertheless, frustrating for the consumer.

Amex is going to the dogs.Last month I checked into a hotel using the Amex card..all ok. Upon checking out the Amex charge was declined, even though the account was current.
Called Amex ,they didn't give a reason.
Moral is ..if you are leaving home with the Card,bring along a back up.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Beckles:
What pisses me off is when the merchants get a "Call in" message but are too lazy to do that and just tell you the card was flat out declined instead ...</font>


Actually, as a merchant that accepts AMEX, when we have to call in for an authorization, AMEX charges the merchant a different percentage for that charge AND an authorization charge. Since AMEX charges the merchant somewhere between 3% and 7% (depending on the dollar amounts of average charges) a $12 purchase with an AMEX card that requires an Authorization could cost the merchant almost $2.50 for a single purchase. And considering the markups (particularly if the item is on sale) it may not be good business sense to call for authorization. Although, if I were on the other side of the counter, I would be upset with AMEX.

So do not necessarily blame the merchant for the incompetence at AMEX. He is just trying to save money when he does not call in.

As a result of the Delta mileage promotions, I got one of the Gold Delta AMEX cards early this year. A few months later, I used it to pay a fairly large hotel bill in Anchorage. I checked out without difficulty, but half an hour later, a $22 charge in a souvenir shop required merchant call-in. Because it was a new card, I wasn't unhappy about this, though I questioned why they let the large hotel bill go through, but flagged the $22. (perhaps the high-fraud problem someone mentioned was the reason). But over the next few days, several charges required call-in. A few weeks later, I went to Florida (I have a rough life, obviously) and used the AMEX/Delta card a few times. Merchant call-in was needed twice, and once I was literally called out of a dolphin swim because a call-in was necessary. The merchant asked ME to call AMEX. They said the merchant had to call. The merchant said I'd have to use a different card. I did, and went back to the swim unhappy with both the merchant and AMEX. Most of these have occurred while travelling, only one occurred while at home (for an $80 purchase at Circuit City!).

I haven't yet cancelled the AMEX card, but will do so soon. The low teaser interest rate has run out, and I'll probably go back to Discover....A pity, I would rather use the AMEX card, had even considered upgrading to Platinum till I heard of all the problems using the companion ticket. But being called out of the dolphin swim was a killer!

Mike

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by mapsmith:

Actually, as a merchant that accepts AMEX, when we have to call in for an authorization, AMEX charges the merchant a different percentage for that charge AND an authorization charge. Since AMEX charges the merchant somewhere between 3% and 7% (depending on the dollar amounts of average charges) a $12 purchase with an AMEX card that requires an Authorization could cost the merchant almost $2.50 for a single purchase. And considering the markups (particularly if the item is on sale) it may not be good business sense to call for authorization. Although, if I were on the other side of the counter, I would be upset with AMEX.

So do not necessarily blame the merchant for the incompetence at AMEX. He is just trying to save money when he does not call in.</font>

MAPSMITH,

I have to (politely) disagree with your post. If you as a merchant accept the American Expresscard and have their little logo on your storefront, then there is no excuse (in my opinion as a customer) for not calling in for an authorization, regardless of the % fee you may incur. In this case, I feel AMEX's "incompetence" is your problem, not the customer's. As for "sale" items, I have often seen cash only conditions imposed by the merchant and this doesn't bother me at all.

By the way, I am a map fanatic. I visited your web site - you have a really nice store.

Beckles:

Don't let the "board police" or a "real lady" read you p.... word!
Sorry about this - I always liked your postings very much.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by blairvanhorn:
MAPSMITH,

I have to (politely) disagree with your post. If you as a merchant accept the American Expresscard and have their little logo on your storefront, then there is no excuse (in my opinion as a customer) for not calling in for an authorization, regardless of the % fee you may incur. In this case, I feel AMEX's "incompetence" is your problem, not the customer's. As for "sale" items, I have often seen cash only conditions imposed by the merchant and this doesn't bother me at all.

By the way, I am a map fanatic. I visited your web site - you have a really nice store.

</font>

I agree with blairvanhorn. The merchants inability to manage their own vendors (AMEX) and thus making it the customer problem is poor business. Additionally, the merchant should look at more then a single transaction on whether they are profitable or not. If you don't like AMEX, then don’t accept it. If you think that AMEX customers are desirable, then take without conditions.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by blairvanhorn:
MAPSMITH,

I have to (politely) disagree with your post. If you as a merchant accept the American Expresscard and have their little logo on your storefront, then there is no excuse (in my opinion as a customer) for not calling in for an authorization, regardless of the % fee you may incur. In this case, I feel AMEX's "incompetence" is your problem, not the customer's. As for "sale" items, I have often seen cash only conditions imposed by the merchant and this doesn't bother me at all.

By the way, I am a map fanatic. I visited your web site - you have a really nice store.

</font>

To further the discussion. In my store we do use the "swipe" machine. Often we get only the message "Declined". And as a businessman, I have to decide whether or not to call in and ask for an authorization on a card that AMEX is telling me is declined.
I have accepted the card, but AMEX is telling me that I do not have to accept it. At that point, I am fully within my contract with AMEX to ask for another form of payment.

But to bring the discussion back to a friendly tone. I have almost NEVER had an AMEX card declined or ask for a call for authorization. And even though AMEX charges me more, the customers, on the average charge almost double what the other Credit Card users do. So I do "Welcome the American Express Card" with open arms. Bring 'em in and we'll ring 'em up!!

http://www.flyertalk.com/forum/smile.gif http://www.flyertalk.com/forum/smile.gif

This thread caused me to look at the PLAT card agreement. It clearly states that AMEX can decline a charge without giving a reason.

Whether they should do that to me is another question....

Interesting Thread.

I have a slighty diferrent issue, I have never had a charge refused on my UK Platinum AmEx, but I have had quite a few Code 10 authorisations done on me by Merchants. A Code 10 is where the merchant suspects fraud and calls the merchant or presses a certain key on their POS terminal.

I always find this highly amusing for two reasons:-

a) The look on the Merchants face when I have spoken to AmEx and they speak with the Merchant telling them to authorise the charge immediately is a real 'Kodak' moment.

b) Knowing the UK credit card system very well due to designing the network for one of the UK's largests dept stores, I know what a Code 10 is and have asked a Merchant why they did it. On one occassion, due to the merchants downright rudeness towards me, I let them get authorisation and then cancelled the transaction immediately by refusing to sign the receipt.

I suppose it is womehat my fault for having the card at 20. Oh well, I bet I don't get as many Code 10's when my Centurion Card arrives as noone seems to know what they are!!

Richard

What's curious to me is how authorizations are apparently handled differently in France, at least in Paris where my AMEX card was stolen earlier this year. I reported it to AMEX within 2 hours of the last time I had used it and filed a police report. Received my statement several weeks later, and there were many (15 or so) charges that occurred from the same day, up to 2 weeks after, I reported it stolen to AMEX. When I called to have my account credited, I asked how that could happen and was told that the "system is different there." I didn't ask for further explanation but I do wonder just WHAT is different there - anybody know?

BTW, I was really glad I had filed a police report, because AMEX asked me to fax it to them after I called about the fraudulent charges.

[This message has been edited by joie_de_vie (edited 08-13-2001).]

I have also found that if I try to use my Platinum Amex online, it will decline the charge if it is small. This happens when I use a gift certificate or coupon code to cover most of an order. My Visa doesn't care if I charge ninety cents, but Amex apparently does. This is annoying, because I like to keep all of my internet orders on one cards.

When the $135 renewal fee appeared on my bill, I canceled my DL AMEX Platinum card. I had spent $25,000 and collected the 10,000 SkyMiles bonus last year, but didn't think I would be spending that much on AMEX this year. The CSR who canceled my card by telephone said that a credit for the $135 would appear on my next statement and, since that was the only charge on the bill, don't pay it.

When the next statement arrived with no $135 credit and a past due notice, interest and $29 late fee on the statement, I called AMEX and was told all the fees would be credited in the next 10 days.

I left for a two-week business trip which included several Hilton stays. I checked into the first Hilton and gave the CSR my Hilton Optima card, only to have it declined. Assuming it was a mistake, I gave him a VISA and forgot about it.

Three days later, I checked into a second Hilton and again my Hilton Optima card was declined. This time I called AMEX to find out what had happened. After researching my account, the CSR told me that because I had a past due balance on my DL Platinum Card, all of my AMEX cards were frozen.

The CSR couldn't explain what the DL card had to do with the Hilton card and could see that the DL account had been closed but the $135 had not been credited so it was still past due and therefore all of my AMEX accounts were blocked.

Since it felt so good to have canceled the DL Platinum card, I also canceled the green card and the gold card.

Decline me once, it's your fault. Decline me twice, it's my fault.



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Biggest Little 1K (in The Biggest Little City) In The World

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by seeyou:
Last month I checked into a hotel using the Amex card..all ok. Upon checking out the Amex charge was declined, even though the account was current.</font>

Same thing happened to me very recently--& this was after the hotel had had a (successful) hold on 3 times the amount ultimately paid for @ checkout.

According to the hotel clerk running the card through, there was no message for them to call AmEx. Instead--the clerk took off a few cents from the total, & BAM--it went through.

What the...?!!!

Perhaps they've encountered the problem enough times to know that--for whatever reason--altering the amount by a miniscule amount can somehow result in success.

All I know is that I was in a hurry & the card (initially) being declined--& repeatedly--was a confusing & obviously unwelcome reality.

I had a case a few years ago where I made a hotel reservation in May for a Sept trip using an AMEX card. In July I cancelled the card. When I checked in (and out), I was never asked for a different credit card (and never thought about it).
The following month I got a bill on the old account. Apparently they had put the room charge (over $1200) through on the original card, and it went through. AMEX reopened the account! AMEX definitely does things differently from other credit card companies.

Jeff

Usually I have not had a problem.

When I signed up for the 'pay over time' option I had serious issues with getting charges approved. Almost immediately I cancelled out of that option.