If you don't like the way a hosting company is treating you, don't complain with the host. American Express has a policy that if you complain with them about a service you will get your money back with no questions asked. The Internet is a high-risk area, so they will refund if you complain. This isn't the best for merchants on the net if they are delivering quality service/products, but it's not designed for the merchant. It was employed to give the consumer full protection.

If you want a refund, file a complaint with your credit card company.

wise words .. but was this suppose to be a reply ?

otherwise, yes you are right, but the problem is some of the people paid either with MO, or .. in a very common case, debit cards, and those offer virtually no protection.

In many cases, merchants are charged *extra* for a "charge-back" like this... so you double the whammy of your revenge... lol.

I dun like this. There are so many people around, who would order the thing, get there hands on it. And then tell the credit card company "we dint do that" or "we dint get a good service". And the poor merchant is left to dry.

I agree kunal, it brings a new meaning to "Try before you buy" doesn't it?

One reason not to accept American Express

From a merchant's point of view, I'd surely have to agree with that... I know a number of people who do this intentionally and habitually -- repeatedly order and cancel back.

One guy I have in mind has been doing this with snowblowers for years... lol... "buying" one every time a snow storm is predicted, then pretending dissatisfaction and returning it right thereafter.

Some people will find ways to abuse just about anything.

I looked at american expresses terms and they basically give no power to the merchant. I could order a $1000 dollar service and after its completed or given to me then I could cancell. They say, well you can take it to small claims court. Who are they kidding??

That is certainly true: For the "small claims court" solution to work don't forget to put in the hosting contract a forum clause, to allow you to sue before your _local court_ with your _local law_ governing the contract.

Even with that it's pretty costy. I suppose one would win the case without much problem, but the expenses you had for the whole trouble remain at your charge, even if you win (except attorney charges; that's the way it is in my country).

So I think it's normally not worth to sue someone for a 25$ debt only

Well agreed, the 25$ for one time is ok. But what if you had 5people doing it to you once a month? 5*25 = 125$ loss, plus whatever other charge back expenses your cc processor charges.

Well yes, if you have the spare time to amuse yourself at court... But even if you win I doubt this would make American Express change their practice. That would only happen if many hosts sued for such small amounts, which is (unfortunately) unlikely.

If it really happens often, I'd rather refuse to accept american express. Every holder of an american express card also has a VISA or MasterCard.

[Edited by astra4 on 01-02-2001 at 06:29 AM]

VISA and MasterCard, through their issuing banks, have the same policy as AmEx. The difference is that AmEx has no issuing banks.

In other words, if a customer complains that (s)he didn't purchase a particular good/service online, the money is automatically refunded to the customer. It is then up to the merchant to establish that the customer (or someone using the customer's Internet account) did indeed order from the merchant's site.

All the more reason to track IP addresses, mesdames et monsieurs. :)

Astra has a good point. While some people may prefer to use Amex we've rarely found anyone who has an Amex card but not a Visa or MC card. Besides, the fees for Amex are much higher than Visa or MC.

Still, we take Amex but have few customers who actually use it.

I agree with what Astra has to say, we should simply not accupet Amex, BUT, if the to be cleint does not have any other card, for some reason, you loose a cleint?

Its a no win situation for the merchant.

I dunno, Amex's just don't seem worth it, with the higher fees and everything, I'd say just don't accept Amex cards..

The unfortunate to this, is that is has the possibility for you to lose some customers, which is never good.


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Rory