The "AMEX Free Sex scam"

still worries licenced Operators in Victoria

Please leave this Card at home!

American Express have done very little to thwart a major scam in the legal sex industry since joining the Victorian DPP
in an unsuccessful attempt to prosecute a former Licencée on a charge of "incitement" in 2004.

The scam flourishes as a direct consequence of Amex' own policies and procedures.
Unlike other Card Issuers in Australia, a prospective Amex Merchant in the legal sex-industry in Australia
is required to sign their Extended Recourse Amendment to Agreement which appears below.

Regrettably for Amex Merchants that do sign up, Cardholders often dispute their statement charge
for a Brothel/Escort transaction and it usually follows that Amex simply charge back to the merchant
without due process & short-circuiting the normal procedure.

If Amex have no legal obligation to investigate their own charge-backs, why would they bother?
If Amex claim the (Extended Recourse) policy is not put into practice, why do they insist on it?

Can the "AMEX Free Sex scam" work? Consider the following 3 statements given under oath September 2004 in the County Court of Victoria: Prosecution Witness (Mr Glenn Cameron, Investigator, American Express Australia Ltd) Q.  Could it actually work? Could the person who used the Card not end up paying? There's - there's - there is that small possibility, yes. Prosecution Witness (Escort Agency Director) Q.  Would this practically work, as you understand that recourse agreement with American Express? Yes, yes, it's so easy, we've had it - we've had it happen a few times to us. We have no - if we get credit card transactions returned to us under this agreement, we can't even get to the point of producing the original sign(ed) transaction prov(ing) that this person did sign it and it's a legitimate transaction. We can't even do that, it's just an automatic cancellation of that transaction and the monies are taken from any current money that were due from American Express. It's deducted that way. Defendant Q.  If somebody had actually taken your message on the website as being a set of instructions and gone out and just followed your instructions, would it actually (have) worked? Would they actually have managed to succeed in getting free sex? There are a couple of provisos where they may be able to get away with it once, in that type of scenario... (continues to detail conditions that need to apply)

The only apparent response to the outcry in the legal Sex-Industry
has been a reminder letter to their own Merchants threatening retaliatory action
and/or revocation of their facility if they have the gumption to make critical statements.
So much for "freedom" of speech!

If you are an American Express Cardholder please don't try this scam
but you can probably now understand why so few Operators in the legal sex industry will accept your card.

Do something! Contact Amex and let them know this is the 21st Century
and this is a legitimate industry.