Amex May Face Tougher Competition Following Court Decision

By | February 24, 2015

A federal court in Brooklyn, N.Y. on Thursday ordered American Express to revise its merchant agreements. Provisions that bar merchants from preferring another form of payment need modification or elimination, the court found. Absent a winning appeal, the decision seems likely to hurt Amex's competitiveness.

It appears merchants such as airlines would be free to promote alternative payment platforms, perhaps by using lower fares. To prevent such activity, known as steering, Amex may have to reduce its fee . . .

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Jay Campbell
Author: Jay Campbell

Jay Campbell in 2004 created travel business newsletter The Beat, in 2006 co-founded Travel Procurement magazine and in 2010 integrated them with Business Travel News. He served as editorial director until 2013. Jay made his travel industry media debut in 1993 at the Air Travel Journal of Boston while earning his undergraduate degree in journalism at Boston University.