Sainsbury's refuses Amex card because of high charges
 

I tried to use my Amex card at Sainsbury's on Saturday for a transaction of nearly £400. At the checkout, they refused to accept my card, saying it was because Amex's charges are too high. I was asked to pay with a Visa card instead.

This may not seem so surprising when I tell you which branch of Sainsbury's I was in - Calais. I would guess that Amex France have not seen fit to extend the same terms of business to Sainsbury's in Calais that are enjoyed by Sainsbury's in the UK. This is despite Sainsbury's in Calais being an offshore extension of Sainsbury's UK branch network, in that the branch is part of the UK loyalty scheme and its target market is UK residents.

One wonders why Sainsbury's have been unable to negotiate more favourable charges for acceptance of Amex cards through Amex France. I think the answer is simple: instead of operating as a globally co-ordinated business, American Express segregates itself into fragmented subsidiaries in parallel national markets. This approach precludes a uniform customer experience across national boundaries and also increases costs for American Express through wasteful duplication of resources. It is likely that Amex France are reluctant to negotiate lower charges because they consider that the matter concerns just one single branch, whereas if Amex was a truly internationally focussed business, it would take all of Sainsbury's transaction volume into account, not just that of one branch, irrespective of transaction currency.

If they take Amex at all then they should have accepted your charge. They are not allowed to discriminate between cards. Amex will not be happy to hear of this. You should call them about it!

It is indeed surprising?????????????????

Does AMEX know about it?????

I have spoken to Amex. UK Platinum Card customer services and general customer services were both shocked by Sainsbury's refusal to accept the card. The International Euro Card department's reaction was not one of great surprise. It would appear that acceptance in France is a general problem, regardless of who the retailer is.

Visa and Mastercard in France use the same network under the "umbrella" of GIE CB :

- all french banks (issuing cards) are members of GIE CB
- GIE CB has contracts with Visa International and Mastercard
- charges for accepting Visa/MC payments are VERY low

Visa and MC are accepted nearly everywhere in France (1 million places) and in all ATMs.

Amex had to build it's own network and has higher costs...

I've found that when travelling in Europe, it is often the cast that retailers who take Amex (especially smaller ones) will occasionally ask if I've perhaps got a Visa or Mastercard I could use instead. Their favourite excuse is that they cannot do the Amex transaction electronically. I'm suprised that a major retailer has refused to take Amex though.

.... like John Lewis or Boots?

(Two of the largest retail chains in the UK, for non-UK FT'ers, both of which refuse Amex)

What is even weirder is that Waitrose DOES take Amex. Waitrose is part of John Lewis ...

...but Ocado, their home delivery arm, does not.

I think this comment rather misses the point that the original poster was making.

Yes, some major retailers don't take Amex and don't claim to. What the original poster was referring to was the case where a large retailer would claim to accept Amex and then refuse at the point of sale.

This is unusual and I have never seen it happen in the UK.

I do not think the original poster made this point though - do Sainsburys in France have an agreement with Amex to take the card? If they do, then it was wrong to reject it.

Just because in the UK it is accepted at its stores, it does not mean that it will be accepted in other countries.

It is clearly up to the company to decide.

I hope you can tell from my original posting that I do not think that Sainsbury's have an agreement with Amex France, and I explain why I think this is the case.

It is true that it is up to Sainsbury's to decide, but my guess is that Sainsbury's would love to accept Amex at its Calais branch, but Amex France are making life difficult by not matching the charges that Sainsbury's pay Amex in the UK. I mention the potential reasons for this in my original posting.

Waitrose have to accept Amex because all the other UK supermarkets do. If they didn't, they may lose business. Waitrose just have to swallow their pride and accept Amex, even though their parent department stores do not. I think you may find John Lewis accepting Amex soon anyway.

If you go to a Waitrose Food & Home (one quarter food store, three quarters John Lewis department store) you can use Amex. The answer for anyone in London who is desperate to use their Amex to buy a new TV etc from JL is to get over to Canary Wharf where there is a shiny new Waitrose F&H.

Interesting find that. I just wish AmEx UK would offer price promise promotions like those offered to US Platinum and Centurion Card holders. I hold a barclays visa for that purpose so I can go around and make a purcahse without really looking for the cheapest deal in a shop as they match any web price.

Best

KVU