AMEX Violated the Law

Earlier this summer, a federal court ruled that American Express violated the law by prohibiting merchants from influencing a cardholder’s payment choice. As a result, merchants may now favor any card brand, with some restrictions, such as: not making untrue statements about the cost of accepting Amex; not disclosing the relative cost of accepting an Amex card over another; or, making an unfair comparison to the cost of accepting a debit card. What merchants can do to influence a cardholder is: offer a discount at the point of sale for a particular brand; offer a free or discounted product or service with the purchase; express a preference for a particular card brand; promote a brand through marketing; or offer some other benefit.  For a full copy of the federal court’s ruling, click here.