Merchant suit asserts American Express policies inflate cost of card payments.
In December 2024, American Express failed in its attempt to persuade a federal judge to block a proposed class action suit filed by merchants.
The suit, filed in March 2024 by ten small merchants, contends that American Express is inflating the cost of credit card payments by enforcing “non-discrimination provisions” which prevent merchants from steering customers toward payment methods that charge lower transaction fees. The merchants assert this is in violation of US antitrust laws.
American Express argued that the claims were too varied for a class action and sought to have the case handled on an individual basis. This argument was rejected by the court.
Prior to filing the lawsuit, more than 5,000 merchants had attempted to resolve the issue through arbitration, but American Express did not pay the over $17 million in filing fees for the mass arbitration, so the proceeding was closed.
For more information see this article from Reuters.
If your business is looking to better manage your merchant account or reduce fees, we’re here to help. We fix and monitor your existing merchant account, and we bring that money back to you. No need to change processors or add a project to your team’s already hectic workload. Schedule a consultation today.
Verisave is a third-party cost-reduction firm specializing in merchant accounts and credit card processing fees.
Verisave is not a payment processor, and is not affiliated with any processors, card brands, or banks.
Verisave has more than 20 years of experience optimizing and monitoring the credit card processing industry.