The Supreme Court sits on the side of American Express

The US Supreme Court ruled on American Express's credit card rules for merchants, and the fees it charges do not violate antitrust laws.

The judges, in a 5-4 decision, said that the American Express rule prohibiting traders from offering promotions or discounts on other credit cards does not violate the law. American Express charges higher transaction fees than its rivals, which means it costs more merchants to accept American Express card payments.

The terms of service of American Express with merchants do not allow them to offer a discount if a customer uses a Visa, Mastercard or Discover card.

Stephen J. Squeri, CEO of American Express, described the court's decision as "a major victory for consumers and for American Express." He said that the business model of American Express has spurred competitive innovations in the credit card market.

"Since this case began eight years ago, we have significantly expanded the network of merchants who readily accept American Express, and we have seen a steady increase in merchant satisfaction," said Squeri. loyalty with map members. "

Retailers are not happy

The National Retail Federation (NRF) takes a different point of view. In a statement, the group said the court's ruling will perpetuate a system that it says costs traders and consumers billions of dollars each year.

"By denying merchants the right to simply ask for another card or to induce the use of a preferred card, the Supreme Court has undermined the principle of the free market where a business should not be authorized to dictate the practices of an entire industry, to protect its business model, "said Stephanie Martz, NRF Senior Vice President and General Counsel." This misguided decision represents a missed opportunity to take a stand in favor of the markets. free and control credit card fees. "

NRF says that "swipe" credit card fees amount to about 2% of the transaction, American Express charging the most. The trade group says that traders are required to build higher sweeping fees in the price of the commodity.

In 2010, Visa and Mastercard entered into an antitrust agreement with the Department of Justice agreeing that they would not prevent merchants from offering discounts for the use of cash or from a low cost card. At the time, American Express chose not to settle, placing its record until the Supreme Court.