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JetSmarter no longer accepts American Express! Too many AmEx chargebacks/insolvency?

JetSmarter no longer accepts American Express! Too many AmEx chargebacks/insolvency?

Old Jun 4, 2017, 4:09 pm
  #1  
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Join Date: Jun 2017
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Exclamation JetSmarter no longer accepts American Express! Too many AmEx chargebacks/insolvency?

JetSmarter just recently let myself and other members know that THEY NO LONGER ACCEPT AMERICAN EXPRESS.

What the hell??? Pardon my language but the expletive stresses how crazy this is!

The demographic that JetSmarter caters to is the demo that use American Express, so how can JetSmarter say "we don't accept that card any more". They're not a local Chinese restaurant, they are a unicorn that has over a billion invested with them!

I have heard rumors that the real deal isn't that JetSmarter stopped accepting AmEx but American Express kicked them out as merchants due to high chargebacks and AmEx members complaining of the terrible customer service.

Also recently received a pre-pay next year's renewal for 10% off email. My renewal isn't for 10 months! I've heard of other members getting the same offer. This sounds like a cash-grab from a company that is running out of money.

American Express protects its members and with JetSmarter dropping them I feel I am no longer protected. The combination of this desperate sounding cash-grab and no more acceptance of AmEx cards makes me very worried that JetSmarter has come to the end of the road.

I would love to hear other's thoughts on this.
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Last edited by js112; Jun 4, 2017 at 4:24 pm
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Old Jun 4, 2017, 9:59 pm
  #2  
 
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I don't have any inside info, but I strongly suspect the Amex thing is due to chargebacks. Either:

a) Amex dropped them because of a high number of chargebacks; or
b) They dropped Amex because of a high number of chargebacks. Amex basically ALWAYS sides with the customer in a chargeback situation, and JS may have been losing a lot of money to this.

Still 50/50 on the running out of money situation. I agree the request for deposits etc. is pretty odd, but it _is_ the way the jetcard folks all work. And they raised $100MM back in December; it's only June, so no way they've gone through that by now.

Nice work on the graphic, btw.
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Old Jun 5, 2017, 3:27 pm
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Great points about the $100 million they raised back in December, but their weekly shuttle routes costs in the millions EACH week. Also, they spent a ton of cash on London and other offices they just don't need. Maybe they just realize the next round free money party might not have as many guests so are actually planning in advance?
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Old Jun 5, 2017, 5:13 pm
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Could be:

1. Amex dumped JetSmarter due to excessive chargebacks or concerns about insolvency and JS's ability to make good on chargebacks (in which case Amex eats the difference).

2. Amex generally has higher interchange fees than Visa or MC. That can make a real difference on a big ticket item. Alternatively, if Amex becomes concerned about solvency, it will jack the chargeback reserve (so that it doesn't get stuck). That shorts cash to vendor and has caused insolvency through lack of cash flow.
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Old Jun 6, 2017, 3:44 am
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As someone who works in the travel world, there is a more benign explanation.

Credit card companies are extremely wary of "travel" as a category, and usually group it with "adult services" and "gambling" for risk purposes.

I have seem seem extremely credible, decades-old travel companies be "under review" by Amex where they are forced to hold travel funds in escrow, which could pose big cash flow problems for a company like JS.

So while I am far from a JS fanboy, Amex does act irrationally in this regard, and could be imposing untenable rules on JS.
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Old Jun 6, 2017, 2:40 pm
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JetSmarter is saying it does take American Express

update from Sergey Petrossov

https://privatejetcardcomparisons.co...rican-express/
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Old Jun 6, 2017, 4:16 pm
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LOL. They are such incredibly slimy hucksters.



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Old Jun 10, 2017, 7:02 pm
  #8  
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Just posted in the Jetsmarter thread but seems you can now use your American Express again if you are buying a membership plan or renewing.
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Old Jun 15, 2017, 6:45 am
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For most membership based companies its standard practice not to accept amex? Umm...I call BS on that. I use my amex for virtually everything, including all my memberships/subscription based services. Also CostCo is like the worst example, they used to only be check or amex, hardly someone you could hold up as a 'typical' example of any retailer.
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Old Jun 17, 2017, 8:28 am
  #10  
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ridiculousness continues (quote re costco)

amex is actually a travel company itself..

from linked article >
Petrossov tells us, “We do accept American Express if customers want to pay with it, but we prefer Visa (or) Mastercard. This is common amongst jet cards and programs. Most jet card companies don’t accept (American Express).
about.americanexpress.com/news/pr/2016/amex-delta-private-jets-partnership.aspx
August 30, 2016

American Express and Delta Private Jets have joined forces to offer a new suite of travel benefits opening a new gateway of custom travel opportunities for select Card Members. The new Premium Private Jet Program offers a reduced fee for Platinum Card Members who purchase the Delta Private Jets Card Membership
amex plat/cent have had private jets partnership program for possibly as long as a decade or more

amex remains only charge card issuer, which is kind of necessary for jet/yacht charters etc

Last edited by Kagehitokiri; Jun 17, 2017 at 9:53 am
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Old Jul 7, 2017, 3:11 pm
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Originally Posted by Often1
Could be:

...

2. Amex generally has higher interchange fees than Visa or MC. That can make a real difference on a big ticket item. Alternatively, if Amex becomes concerned about solvency, it will jack the chargeback reserve (so that it doesn't get stuck). That shorts cash to vendor and has caused insolvency through lack of cash flow.
Amex's rates aren't significantly higher, or even higher at all, than MC/Visa cards that provide points or rebates. These cards come with an extra 1%+ charged to the merchant that brings them in line with Amex.
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Old Jul 11, 2017, 3:02 pm
  #12  
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I have used at least a dozen private jet companies over the past few years and have used my AMEX with every single one of them.
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Old Jul 11, 2017, 5:22 pm
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Originally Posted by WhyPrivate
I have used at least a dozen private jet companies over the past few years and have used my AMEX with every single one of them.
i wonder if they were attempting to differentiate between charters and prepaid charter cards and or fractional ownership cards, vs membership fees which do not include any actual flights

but considering all the other bizarre stuff, not sure it even matters
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Old Jul 12, 2017, 8:22 am
  #14  
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Originally Posted by Kagehitokiri
i wonder if they were attempting to differentiate between charters and prepaid charter cards and or fractional ownership cards, vs membership fees which do not include any actual flights

but considering all the other bizarre stuff, not sure it even matters
For charter/jet card deposits most companies charge a processing fee for any type of card vs. a wire.. otherwise they're just including that processing fee in your base rate anyway so I prefer to have the option.

Haven't heard of anyone flat out deny working with a major credit card company like AMEX though. Maybe a dispute because of the failed partnership with Delta Private Jets empty legs? Delta is a big partner with AMEX.
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