Originally Posted by
craigf
In my experience with this card, you need to be vigilant. The category is determined by Amex merchant services, not the card issuing side.
I usually call every couple of months to have them re-categorize the charges. All foreign spending will fall under the 1% category unless you call and ask them to manually change the travel/dining charges.
Incorrect. I use my card overseas extensively and it's categorized correctly more often than not.
The way that AMEX does this is simple - when a merchant signs up for a merchant account with a service provider they fill out an application form - on that form they are asked about their primary business. They are assigned a merchant id and (generally behind the scenes) a Merchant Classification Code (MCC). This MCC is what categorizes a merchant as retail, travel, dining etc. and drives the rebate (as well as for example annual "categorized" reports that some CC companies provide).
Technically only the "Merchant Service Provider" can reclassify the merchant - but it's not easily done... and I doubt any merchant/restaurant etc. will go thru the hassle. In certain cases, not having the "appropriate" MCC can help (for example not being classifed as an e-Commerce merchant) can reduce the risk factor and possibly the service fee charged - but being classifed as a restaurant vs. a clothing store should have no impact and no benefit/loss to the merchant.
Bottom line - this should be occurring relatively infrequently but I guess you can call Amex and complain - they might adjust it for you. I honestly don't bother... (in my case it'd probably be $10 at best difference in rebate)