American Express Practices Under Fire

Jul 16, 2014 by

American Express Practices Under Fire

This lawsuit will be interesting to watch. American Express is not accepted in a reasonable number of stores and restaurants. Why? Because AmEx charges the merchants a much higher price to process a customer’s purchase and the merchants do not want to lose that money. What’s worse is that when a merchant agrees to AmEx’s higher fee and agrees to accept purchases charged on AmEx, AmEx makes the merchant agree to not offer customers a discount for cash payment or a charge on Discover, Visa, or Mastercard (all of whom charge the merchant a much lower fee than AmEx). The issue in this case is whether AmEx’s requirement is “anti-competitive” and illegal.

Read the article at time.com

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