American Express is launching the “Discount Refund Option” program in July 2011. Merchants will now have the option of receiving a refund on their credit return Discount fees in exchange for a 0.40% increase to their current discount rate.

American Express will mail all existing Amex clients a letter beginning Tuesday, May 31st, 2011 explaining the program details.

Mentioning the obvious make sure you do NOT choose this option. Sure when you do a refund you no longer will be stuck with the original discount rate charge but you will be paying 0.40% MORE for ALL your Amex transactions.

Another perfect example of card issuing companies trying to take advantage of merchants.

A sample of this letter is attached.FINAL_One Point RDR Communication_Generic