The Supreme Court took today with American Express in a 5-4 decision, allowing amex to maintain provisions in their contracts with retailers that prevent them from ‘steering’ a client from Ameks Visa or MasterCard. Justices Roberts, Kennedy, Alito, and Gorsuch Was justice Thomas’s majority opinion.
In PDF format can be found here.
“American Express,” according to the tradition of the business at swipe payment than Visa or MasterCard (though they have become more competitive recently on charges), allegedly to help Finance their richer bonus programs. Because of this, some retail stores may attempt to steer customers from using amex cards. To combat this chip has a provision in the agreement requiring the companies that accept their payments, to avoid this governing practice.
More than a dozen States brought a lawsuit against “American Express” for this policy, arguing that it violates antitrust laws. Conservative judges ruled in favor of the “American Express” that the policy Ameks not been demonstrated to be stifling competition.
Judge Breyer wrote the dissent with the opinion that American Express card consumer face of the card issuing business apart from their payment network business, and that the burden of costs associated with the consumer end can not affect their payment network business is swipe fees.
For most of us in the miles and points hobby the decision is positive, since we do not own retail business, but we use amex cards with rewards, and we want amex to keep these reward levels that perhaps could have reduced a bit in the long run, if they lost the case.
On the broader point, the wsj notes that this decision is an obstacle to the broader aspirations of the merchants to credit card swipe fees, as well as compliance with limits similar to debit cards. If such legislation ever passed, obviously, to destroy the credit card bonus program.