As if merchants and issuers didn’t have enough to think about this year, a recent court ruling has introduced a new wrinkle: merchants will now be able to steer consumers away from using American Express cards at the checkout counter:
“The change comes after a federal judge in February found that AmEx’s rules on the matter were anticompetitive; a separate court this week denied the company’s request to keep the rules in place pending its appeal.”
“That means starting next month, merchants will be able to offer discounts or rebates to customers paying with a card from Visa Inc. or MasterCard Inc. or display signs showing which card brand they prefer. Visa and MasterCard also could negotiate lower fees with certain merchants in exchange for the merchant agreeing to steer customers toward their cards.”
Overview by Alex Johnson, Sr. Analyst, Credit Advisory Service at Mercator Advisory Group
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