American Express, we can do business without it!

As a small business, we have to deal with all kinds of payment methods. Wire transfers, checks, IOUs, terms and of course, credit cards. In this environment of rampant credit card frauds and identity theft, one can understand the tough stance credit companies can take to guard their members. The thing is, few recognize the fact the real customers for credit companies are millions of business around the world. As a business owner, we are the ones paying the fees every time someone charges their purchases on the card.

Some of our customers are small startups, so it would not at all be unusual for them to charge their company purchases on their personal credit cards. In most cases, nothing happens as a result of this, and we get our settlements without a hitch. The problem starts when they dispute a charge. We experience our first hassle this last week.

One of our "customers" charged a purchase then decided a month later she no longer have uses for the product anymore and asked for a refund. She asked it the balance could be credited to her American Express account. Thinking that it has been a month and the amount has already been settled, we decided to issue her a check. A week later, we got the confirmation that the check was cashed. So it was a complete surprise two months later we found $2,000 charged back against us from American Express. It showed up in our corporate checking account. After a round of phone calls we were told the customer has disputed the charge and we were given email notices of the dispute. We asked around and no one remembers getting a notice from American Express. Is it possible they did send it? Of course, but with all kinds of email spam’s out there, it is also entirely likely the notice got lumped into the spam folder along with all the phising emails.When we asked why no phone call or written notices were given to us, we were told we somehow selected email notification when we setup the payment processing. Of course, our payment processor First Data doesn't even handle the charge back, American Express does. So as far as I can tell, the email could have gone to First Data and not us.

When asked if a phone call could have resolved the issue, we were told no. A copy of the cashed check as well as any collaborating evidence has to be submitted.I printed the invoices, credit memos, UPS delivery confirmations and copies of the cashed checks and faxed to American Express charge back department. I was told it would be resolved in 48 hours.

A week goes by I heard nothing, received no emails and of course no mail contacts. I called again. I got a supervisor on the line telling me they can't find a signature on the check, and the check was made out to a business name, not the cardholder's name. So I pointed out I can clearly see a signature, besides, all the invoices show the business name. The business name and the cardholder's name share the same address, the UPS delivery confirmation shows the recipients name and the business name are one of the same! On top of that, it clearly indicates it was a residential address.I was told in no uncertain terms by the American Express supervisor that according to their company policy, they will not do anything for me, disregard the obvious.

At this point, we are out of the nearly $3,000 in refunds we gave back, plus $2,000 charged back by American Express. It is one phone call by one of their cardholders, versus all of the evidence we can muster. I am left with little choice but to call the cardholder's local police department and charge the person with credit card fraud. Aided by American Express.