American Express Membership Rewards - Amex can rot in h*ll - I just cancelled my Plat card

After 16 years with Amex I just cancelled my card because of some rigid policy that prohibits me (anyone) from charging more than $2,500 a month on paypal. I can run up $100,000 of charges at a no name bar in Vegas should I choose but I am apparently not safe enough to decide whether or not to spend $3,000 on ebay? Who's brilliant idea is this? What good is good customer service if I can't use my freakin card?

You just opted out, I just joined.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by jmorris:
After 16 years with Amex I just cancelled my card because of some rigid policy that prohibits me (anyone) from charging more than $2,500 a month on paypal. I can run up $100,000 of charges at a no name bar in Vegas should I choose but I am apparently not safe enough to decide whether or not to spend $3,000 on ebay? Who's brilliant idea is this? What good is good customer service if I can't use my freakin card?</font>

I just had the same argument with them, and they absolutely refuse to change their policies - no exceptions allowed. I don't quite understand the reasoning.

This makes about as much sense as their line of credit policies. http://www.flyertalk.com/forum/mad.gif I provided them with documentation of my very high net worth, but because my income, purposely scheduled at an amount way below my means, my LOC is locked at $22,500.(I lied to get that much). I've already charged $25,000 since my renewal in August - $16,000 of it this month. The only reason I don't cancel is because I earn non-flying miles faster that with other cards.

AMEX has that policy on all cards. If you have more than one card you can do 2500 on each. I use my other ccs for large Paypal transactions.

Another strange AMEX policy.

Rob

Yes, they have rigid policies, but their customer services is absolutely the worst. Most of the time I spend numerous hours trying to resolve the problem and often throwing up my hands in disgust.

I, too, would dump this AMEX card, actually all of my AMEX products, in a split second, were it not for starwood's inexplicable and very unfortunate partnership with these inept bozos (AMEX) which has, for the moment, handcuffed me to AMEX. So, I'm stuck, as we all are, until/if/when starwood wakes up, realizes the vast, virtually immeasurable business being indirectly left on the table through the indefensible AMEX policies. Talk about misery loves company.

BTW - think about this new perspective that hit me. I had a discussion with paypal regarding the so-called AMEX/paypal stalemate this last week which had me scratching my head...though I've long felt this joke of a $2500 30-day rolling paypal-only limit was due 100% to AMEX's gross misunderstanding of, and phobic fear of, the concept of electronic funds transfer, I suddenly got a very strong sense that *MAYBE* paypal DOES NOT WISH to encourage more AMEX charging by forcing AMEX to remove this ABSURDLY LOW LIMIT which is an insult to AMEX cardholders in good standing who may have worked years to establish useful lines of credit.

QUESTION: Why, I rhetorically asked myself ?

POSSIBLE ANSWER: Because PAYPAL HAS TO PAY THE SAME INFLATED DISCOUNT RATES all merchants who accept AMEX have to absorb versus Visa or M/C discount rates (much lower). Thus, it is actually to PAYPAl's CLEAR ADVANTAGE to ensure that the bulk of credit card charges, if the paypal user insists on charging and not funding out of cash balance (which paypal would STRONGLY prefer eveyone do, since they make much higher margin and don't have to eat discount charges), end up on Visa, M/C, or Discover, where the discount rates are less, AND NOT END UP on AMEX.

So...I now have to wonder if paypal is being shrewdly and coyly passive about AMEX's screwed up policy of limiting paypal charges and therefore is dumb like a fox by discreetly encouraging AMEX to continue this insanely low rolling 30-day limit of $2500 ???

Just wondering out loud.

Something doesn't jive in Denmark that senior paypal management can't get these AMEX's credit card and charge card products on-board like they have managed to get Visa, M/C, and Discover to do so. After all...paypal is a multi-billion operation these days. Gotta assume $500,000,000 of those billions in annual payments surely would naturally flow to AMEX if AMEX would rid this artificially-low limit.


ONE POSSIBLE SOLUTION: if paypal were serious about getting AMEX's attention....then they should LOCK OUT ALL AMEX CHARGES at paypal for some pre-announced period, and only allow Visa, M/C, and Discover be authorized credit card paypal partners... to thereby force AMEX to stew a bit over being openly discriminated against, just like they are currently discriminating against paypal to the detriment of long-standing AMEX and paypal customers. I think it would only take a couple of weeks before AMEX would fire the VP that handles the paypal account, and then get this straightened out.

Can anyone else speculate as to how and why paypal can't seem to generate the leverage that should be available to them...to force AMEX to back off this open discrimination against paypal. If *I* were the paypal CEO, I would be LIVID at AMEX openly discriminates against paypal customers, and, to my knowledge, does not enforce these artificial charge limits with any other merchant in the world (no eft merchant).

Paypal ought to be really fighting this issue as an affront to their very credibility, as this silly AMEX limit, indirectly, makes paypal look semi-incompetent and unable to be a mainstream merchant, but I sense a quiet acquiescence by paypal every darned time I speak with them on this issue.

Yes, these paypal CSRs blame AMEX as the sole problem, but they can never convince me that paypal senior management is aggressively trying to fix the problem. hhhmmmmmmm

[This message has been edited by ILUVCITIBANK (edited Nov 20, 2003).]

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Georgia Peach:
I provided them with documentation of my very high net worth...</font>

It's interesting how you continue to trot out this information:

http://www.flyertalk.com/forum/Forum69/HTML/001894.html

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Georgia Peach:
Called back, explained that I have considerable assets...</font>

and here:

http://www.flyertalk.com/forum/Forum69/HTML/001934.html

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Georgia Peach:
My assets are considerable...</font>

and here:

http://www.flyertalk.com/forum/Forum1/HTML/009497.html

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Georgia Peach:
I sent them a mid-six figure brokerage statement...</font>

You must be very proud...

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ILUVCITIBANK:
though I've long felt the joke of a low 30-day rolling paypal limit was due 100% to AMEX's gross misunderstanding of, and phobic fear of, the concept of electronic funds transfer, </font>

I think it's a secret plot by Amex to stop people from running up $150k in paypal transfers in order to quality for the Centurion Card. ;-) (Though with two Amex cards I suppose one could still run up 60k a year this way)

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ironmanjt:
I think it's a secret plot by Amex to stop people from running up $150k in paypal transfers in order to quality for the Centurion Card. ;-) (Though with two Amex cards I suppose one could still run up 60k a year this way)</font>

Of course, one would spend nearly $4500 in PayPal fees doing so.


I think AmEx may be worried that people might use PayPal as a cash advance. Of course, it still comes with about 3% of PayPal fees.

d

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Doppy:
Of course, one would spend nearly $4500 in PayPal fees doing so.


I think AmEx may be worried that people might use PayPal as a cash advance. Of course, it still comes with about 3% of PayPal fees.

d</font>

2.2% if you have a business account. Of course, if you have the amex cash rebate card you're getting 1.5% cashback, so in reality the fee is only 0.7%. Even on 150k this only comes to about $1000. If someone's willing to pay a $2500 annual fee, I'm sure they'd be willing to pay $1000 to get the card.

We too find American Express VERY frustrating.

Gripe 1: I have several credit cards with large loc's....American Express approved me for about 25% of what my other loc's are http://www.flyertalk.com/forum/frown.gif Then rejected my increase request (a mere $5K increase.

Gripe 2: My husband's ex wife had a problem with AX back in the 80's. HE is still being penalized for it. He has perfect credit (tho not a TON of it like I do http://www.flyertalk.com/forum/wink.gif) and has been divorced for 15+ years...but every time I try to add him to MY account....they refuse http://www.flyertalk.com/forum/frown.gif http://www.flyertalk.com/forum/frown.gif He thinks I should write them a letter....I feel it is all just USELESS. I even applied for a business account for HIS business...but only my name is on it! lol

I think after we buy our bonds in December I am going to consider parting ways with American Express also...

A related incident suggests that the reason for the policy isn't that complicated ...

I was surprised when Amex security called me after I made a $2,500 purchase via the web - I've never received a call when charging that much to a brick-and-mortar merchant.

Bottom line: Amex feels web-based purchases are simply more risky and require security calls and charging limits.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by singlemalt:
You must be very proud...</font>

Hilariously true! Very perceptive singlemalt.