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AmEx card rules violated U.S. antitrust law


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Bad Month for AMEX (Reuters) - American Express Co violated U.S. antitrust law by prohibiting merchants from steering consumers to use credit cards that have lower processing costs, resulting in higher prices, a federal judge ruled on Thursday.....http://www.reuters.com/article/2015/02/19/american-express-antitrust-idUSL1N0VT1ML20150219

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Garaufis, however, said American Express wrongfully exploited its 26.4 percent share of purchase volume in the U.S. credit and charge card market by banning merchants from giving incentives for consumers to use one card over another, or telling consumers they might be better off if they did.

 

How is some salamander cashier going to tell me what card I'd be better off using?

Edited by dilligaf
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Garaufis, however, said American Express wrongfully exploited its 26.4 percent share of purchase volume in the U.S. credit and charge card market by banning merchants from giving incentives for consumers to use one card over another, or telling consumers they might be better off if they did.

 

How is some salamander cashier going to tell me what card I'd be better off using?

 

 

I had to educate some lovely older cashier at Target a few weeks ago on what merchant agreements allow and what they do not. I was very nice about it, and she took it very well. I imagine she just does she she is told, and chocolate runs downhill and all that. Afterwards she thanked me for informing her, and wished me a lovely evening. It's a sad day when you're impressed and surprised when people are nice and take non-personal criticisms well.

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Garaufis, however, said American Express wrongfully exploited its 26.4 percent share of purchase volume in the U.S. credit and charge card market by banning merchants from giving incentives for consumers to use one card over another, or telling consumers they might be better off if they did.

 

How is some salamander cashier going to tell me what card I'd be better off using?

 

 

The "they" refers to merchants. Generally merchants' welfare isn't of much interest to consumers. You can always ask for a discount if you use a different card and if you are dealing with the owner they might well oblige.

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Garaufis, however, said American Express wrongfully exploited its 26.4 percent share of purchase volume in the U.S. credit and charge card market by banning merchants from giving incentives for consumers to use one card over another, or telling consumers they might be better off if they did.

How is some salamander cashier going to tell me what card I'd be better off using?

The "they" refers to merchants. Generally merchants' welfare isn't of much interest to consumers. You can always ask for a discount if you use a different card and if you are dealing with the owner they might well oblige.

I disagree. If the 'they' meant the merchant, it would not be 'might'.
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Oh, I see the headaches now.

Sales clerk: Oh, if you use your Visa, you can get 10% off.
Customer: No, I'd rather use my AMEX

Sales clerk: But really, they have a special going where if you use a Visa, you will get 10% off.

Customer: But my Visa is 25% and my AMEX is 12%....I'll use my AMEX

Sales clerk: Well, if you insist.....

That is EXACTLY where this is going. I hate going into department stores as it is ("Will you be using your Macy's card? Oh, would you like to apply?" NO, I just want to make my effing purchase and get out of the store!)

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Garaufis, however, said American Express wrongfully exploited its 26.4 percent share of purchase volume in the U.S. credit and charge card market by banning merchants from giving incentives for consumers to use one card over another, or telling consumers they might be better off if they did.

How is some salamander cashier going to tell me what card I'd be better off using?

The "they" refers to merchants. Generally merchants' welfare isn't of much interest to consumers. You can always ask for a discount if you use a different card and if you are dealing with the owner they might well oblige.

I disagree. If the 'they' meant the merchant, it would not be 'might'.

 

 

Touché :grin:

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  • 3 months later...

American Express loses emergency bid to block U.S. card injunction A federal appeals court on Tuesday rejected American Express Co's emergency request to halt an injunction that requires the company to let merchants steer customers toward lower-cost cards offered by competitors....http://www.reuters.com/article/2015/06/16/american-express-antitrust-idUSL1N0Z22HT20150616

Edited by credithunting
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