Credit Cards

U.S. Sues AmEx for Antitrust

It’s the American way, we guess: The United States is slapping American Express with an antitrust suit after it failed to join an agreement agreed to by Visa and MasterCard that would allow merchants to offer incentives to shoppers who use cash or cards with lower merchant fees. "Because American Express has refused to change its rules, consumers are being held hostage from receiving the expanded choices and lower prices that they deserve under our settlement," said Attorney General Eric Holder. AmEx argues that the government will be handing more power to Visa and MasterCard, as they will steal AmEx customers with their new, lower fees. Isn’t that what we call competition?