17 July 2018
Register today

American Express to appeal against antitrust ruling

20 February 2015  |  6268 views  |  0 American express logo

American Express is to appeal a US Federal Court ruling that its exclusivity conditions constitute an unlawful restraint of trade, contending that the judgment would harm competition by further entrenching the two dominant payment networks, Visa and MasterCard.

The case against Amex was brought by the US Department of Justice, which argued that the card scheme's rules prohibiting merchants from accepting alternative cards with lower fees was a violation of anti-trust laws.

In a statement noting its intent to appeal, the company said: "Only a small percentage of Visa and MasterCard holders carry American Express cards. By contrast, most American Express Card Members carry a competing card in their wallet. Today’s decision means merchants would be able to steer customers to use Visa and MasterCard, while it would be virtually impossible to steer away from them.”

The court's decision was met with delight by merchant groups.

“Today’s ruling is one step forward to bringing badly-needed competition and transparency to the entire credit card industry," says the Merchant Payments Coalition. "Allowing retailers to ask consumers to use a less expensive card will result in lower prices for consumers and a fairer market for the fees merchants currently pay to accept credit and debit cards."

Visa and MasterCard avoided legal action by agreeing to allow retailers to use discounts and other incentives to encourage consumers to use alternative cards.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Supreme Court declines retailers' interchange challenge

Supreme Court declines retailers' interchange challenge

21 January 2015  |  6185 views  |  1 comments | 9 tweets | 8 linkedin
Google sues Visa and MasterCard over interchange fees

Google sues Visa and MasterCard over interchange fees

06 January 2015  |  16913 views  |  0 comments | 38 tweets | 42 linkedin
EU agrees interchange reforms

EU agrees interchange reforms

18 December 2014  |  11520 views  |  12 comments | 14 tweets | 11 linkedin
Visa and MasterCard bow to Canadian pressure for lower interchange fees

Visa and MasterCard bow to Canadian pressure for lower interchange fees

04 November 2014  |  9543 views  |  1 comments | 21 tweets | 26 linkedin
Wal-Mart sues Visa over card fees

Wal-Mart sues Visa over card fees

27 March 2014  |  8689 views  |  2 comments | 7 tweets | 9 linkedin
EC accepts Visa Europe credit card fee cap proposal

EC accepts Visa Europe credit card fee cap proposal

26 February 2014  |  9134 views  |  0 comments | 8 tweets | 13 linkedin
Retailers file interchange settlement appeal

Retailers file interchange settlement appeal

03 January 2014  |  5379 views  |  0 comments | 1 tweets | 3 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAdVisit info.nice.comVisit https://secure.vasco.com

Top topics

Most viewed Most shared
Handelsbanken trials micro contactless cardsHandelsbanken trials micro contactless car...
10383 views comments | 19 tweets | 30 linkedin
Metro Bank opens developer portalMetro Bank opens developer portal
9348 views comments | 5 tweets | 14 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
8712 views comments | 6 tweets | 14 linkedin
Citi to streamline corporate receivables with HighRadiusCiti to streamline corporate receivables w...
7734 views comments | 1 tweets | 5 linkedin

Featured job

Find your next job