Internet fraud "guarantee" - or not? (American Express)

Member Name: Gorgon

Product:	American Express
Date:	31/08/00 (236 review reads)
Rating:

Advantages: Potentially very useful - IF you are in fact covered...

Disadvantages: How do you know in advance what items are or are not covered for fraud?

Amex's "guarantee" of money back if you suffer Internet fraud using their Blue Card has been much trumpeted (eg in the press) - but what is it worth, really? At first sight it sounds a Very Good Thing, but I think they've fallen at the starting post with this one, and I'd be interested to hear of others' experiences.

I saw a newspaper article (I think it was the FT) reporting on this fraud "guarantee" and mentioning that Amex said books and CDs were not covered.

But as an existing Blue Card holder, all I got was a leaflet saying "Online Fraud Guarantee - Now you can shop on the web with confidence. Because if any unauthorised online payments are made with your Blue Card, you won't be held responsible". Underneath that was an item headed Refund Protection ("Should any UK retailer, online or offline, refuse to refund you for any covered goods within 90 days of purchase, we promise to refund you").

Now what does that mean to us simple card holders? Is the Refund Protection anything to do with the Online Fraud Guarantee, or are they separate "benefits"? Beats me…

There's a tiny footnote against the Refund Protection item (but NOT against the Online Fraud Guarantee item) saying, in small print at the back of the leaflet, "Policy covers undamaged goods only and begins where any insurance or merchant returns policy leaves off. Up to £200 per item and £750 per Card Account. Certains [sic] goods excluded and policy subject to conditions of cover".

No mention of books or CDs etc. How do you know what goods are excluded then?

So, I called Amex customer services on the number given on my credit card statement. Was there any further leaflet, any policy document they could send me, which would enlighten me as to exactly what was or wasn't covered by the Internet fraud guarantee? Nope.

OK, so I thought I'd try t
he experts - I called the number given on the leaflet for "any questions" about the Blue Card benefits, 0800 597 6660 (any relationship to the number of the beast no doubt is coincidental…)

No, there's no further information they are able to send customers about exactly what is or is not covered by the fraud guarantee.

What about the newspaper article then saying books and CDs aren't covered? Ah, well, perishables are excluded, of course. "Of course"? How is a customer to know that if they didn't read the newspaper article? There's nothing about that in the leaflet sent to customers, and they're not going to send out any further info to customers explaining the scope of coverage. And since when is a book a "perishable"? (tell that to Dickens!) - they said, and I quote, "Well you could read it and then send it back couldn't you, so it's a perishable"…

So - what's the verdict? Are Amex customer services confused about the difference between Internet fraud guarantee and refund protection? If THEY'RE confused, what chance have we mere customers got? And if there's no difference, how are customers meant to find out what things are covered by the fraud "guarantee", and what things aren't? Fat lot of good it will be to find out from Amex that sorry, no, you're not covered, AFTER you've been defrauded…

If anyone has actually been the victim of fraud and got Amex to give them a refund because of this guarantee, do say - and do say too if you have had trouble getting them to do it. But you guessed it, I for one am not going to risk using the American Express Blue Card to buy over the Internet. It's stressful enough not knowing if I'm going to be defrauded, let alone wondering if Amex will or will not honour the fraud "guarantee".

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