Last week I received an email from a reader that discussed one of my favorite pet peeves. It was about something that many small stores do to their customers. It concerns the issue of accepting the American Express Credit Card. Some stores would rather avoid taking Amex because the merchant charges are often higher than those of other credit card companies. My feelings are that the Amex customer is a very good customer and if you say you are going to accept it, then accept it with out a song and dance. I was so impressed with the way the email was worded that I asked Hillary Moulliet from Mathews, North Carolina for permission to use her comments as this week’s tip.

Thank you, Hillary. As you read the following, please think about what good service really means.

I was recently in a small gift shop and overheard an exchange between the sales clerk and customer. The customer was paying for her purchase ($140 worth) and gave the clerk — whom I later learned was the store owner — her American Express card. “Oh, do you have another card?” she asked the customer. “They (Amex) charge us higher fees and they take a long time to deposit the money in our account.”

The customer said (somewhat reluctantly) “okay” and gave her another credit card. The clerk then continued to explain further why they don’t want people to pay with Amex.

I’m listening and shaking my head. Would a baker have German Chocolate Cake on his menu and then tell a customer that it’s too difficult to make so would they please order something else?

Rick, this is not the first time I’ve heard this. If you promote something in your store — anything — you should follow through. Will that customer in the gift shop return because of that incident? Maybe. But I also know how important the credit card bonuses, travel miles and cash back deals are to people and she may reconsider.

Thank you for your time and all the best for a wonderful 2006!

Neither Hillary nor myself work for American Express, but I do make 95% of all of my purchases with my American Express card. Yes, I have lots of bonus points but I prefer American Express because I’m not tempted to make a minimum payment. I just like paying my bills when they happen.

However, knowing that American Express users generally buy higher priced items and more of them, the next time you sell to an American Express card holder, perhaps it is better to suggest another item they might like to add to their purchase rather than complain to them about Amex. Another thing you can do is to contact American Express to obtain the mailing list of Amex card holders in your marketing area and promote just to them. I have done this with amazing results. A few years ago Amex would even help prepare the mailing piece and do the mailing for you. They did charge for these services and yes, their fees are higher than the average printer and mail house. But who cares when the results more than offset the higher cost?

Thanks to Hillary for the inspiration. I invite other readers to share experiences for all of us to learn from. Good work, Hillary!