American Express, once known for offering exceptional customer support, gets a failing grade in handling a simple, human mistake. Here are the details:
I own several small online businesses. Our VeriSign online merchant gateway was purchased by PayPal, so PayPal recently informed us that we needed to switch over using their API on our web sites. Last week our programmers finished rewriting EventMingle to use the new PayPal Gateway API. Credit card companies give us test credit card numbers to use when testing the gateway to make sure it works correctly. They test to make sure it rejects invalid credit cards, expired exp dates, incorrect CCV codes (the 3-4 digit code on the card) and zip code checks.
During our testing, one of our programmers used my expired American Express card to make sure it would be declined. Last October I had switched from an American Express Gold card to an American Express Open card with a cash rebate and no annual fee. I had thought the American Express Gold card was closed when I transferred over to the Amex Business Open card. I have not paid the annual fee on the gold card since 2007 and the last time I used the American Express Gold card was in April 2007.
So, when my programmer used my old, expired American Express Gold card to test our gateway and to ensure it came back with a declined, I was immediately flagged at American Express. I had, in fact, violated a very serious section of my Cardmember Agreement. This action resulted in American Express cancelling my expired American Express Gold Card (that I thought was closed in 2007). In addition, they cancelled my current American Express Business Open Card. In addition, they went on to say:
Our cancellation of your account(s) under these circumstances may result in negative reporting of this account to the consumer reporting agencies.
Now, I’ve had an American Express card since 1982. It was in fact, my first credit card. I was 24 years old. I decided to call American Express to talk to them about this decision. I was sure once I explained how it was a simple human error, they would fix it. It isn’t like the charge went through and the cash was placed it my merchant account. It wasn’t.
(I should point out, they don’t want merchants using their own credit cards on their merchant accounts because its like getting a cash advance. It is called factoring and is frowned on.)
I was on hold with American Express for 47 minutes and went through 4 people before I was finally told to call the American Express Financial Review Team. Today when I called I was forwarded to Vickie P. who, didn’t want to hear about how it happen, or the fact it was a test against an expired card, or it was a human mistake. She told me my card was cancelled and that was it. She was the final decision maker and there was no one I could appeal to. 27 Years as a customer didn’t account for anything. The “Member Since” date has no value. They did not want me as a customer any longer.
I have to admit, I was set back by her tone, by her frankness and by the fact what I had to say was of no value. She talked to me as if I was a criminal. You would think I just held up a bank and was tossed in jail.
So as of today I no longer have an American Express card. My “Member Since 1982” has been officially retired. There is no one at American Express that I can complain to. I have been kicked to the curb.
It was interesting when we were finishing the call I said, “Well I guess 27 years of perfect credit with American Express doesn’t really get you consideration.” she responded with, “I don’t have access to your credit history, so I can’t comment on it.”
So, she is the final decision maker, she isn’t interested in the details and doesn’t have access to my loyal 27 years of being a customer. That is amazing to me. To add insult to it all, they’re going to report that they CANCELLED these credit cards on me to the credit reporting agencies. There goes my 800 FICO score.
I’m no longer a RAVING FAN of American Express. I’ll go back to using my Wells Fargo Business Visa Card for all of my purchases. I think I’m more broken up over it then they’ll be. It isn’t surprising why so many consumers hate their credit card companies. Clearly, with American Express’s poor customer support, it’s clear they have joined the “us versus the customer” mentality.
What can we learn from this? How could American Express handled this differently? I would love to hear your comments.
I think customer service departments must have trained, knowledgeable people who understand what you’re talking about. I don’t think Vickie understood this was a digital test, or cared. She assumed I took my expired Gold Card out of my wallet and walked up to a terminal and swiped it, trying to get cash off the card. That is why she was so matter of fact.
Next, I think you should always have an appeal process for your customers. Even if it must be a form or email. Telling a customer there is no appeal process is a dead end. Plus, if you don’t have a process to review appeals from loyal customers you have no way of improving your customer service processes.
So American Express gets an “F” in customer service. They will no longer make an average of 3.3% on each of my purchases and I will repeat this story to anyone who will listen. You can help by ReTweeting it to all of your friends.