Amex Kicks Visa's Ass

[Anonymous]

American Express Co. will receive up to $2.25 billion under an agreement with Visa Inc. to settle litigation that has been pending since 2004, according to statements released by both credit card issuers Wednesday.

American Express expects to recognize an initial payment of $1.13 billion during the fourth quarter, which includes a $945 million payment by Visa and an additional payment by the bank defendants.

Beginning on March 31, Visa will pay up to an additional $70 million a quarter over four years up to a maximum of $1.12 billion.

American Express said MasterCard remains the sole defendant in the lawsuit. American Express expects to seek billions of dollars in damages for lost business opportunities.

"We plan to move forward with the litigation to hold MasterCard accountable for the illegal actions that blocked banks from working with us for many years and to seek full compensation for the value that would have been generated for our shareholders," said American Express Chairman and Chief Executive Kenneth I. Chenault.

Message Edited by TheCynicalOne on 11-10-2007 06:43 PM

[Anonymous]

good now many they wont be so stingy and give me a card, looks like they got money now

[Anonymous]

wow.

[kclb]

---

@Anonymous wrote:
American Express Co. will receive up to $2.25 billion under an agreement with Visa Inc. to settle litigation that has been pending since 2004, according to statements released by both credit card issuers Wednesday.

American Express expects to recognize an initial payment of $1.13 billion during the fourth quarter, which includes a $945 million payment by Visa and an additional payment by the bank defendants.

Beginning on March 31, Visa will pay up to an additional $70 million a quarter over four years up to a maximum of $1.12 billion.

American Express said MasterCard remains the sole defendant in the lawsuit. American Express expects to seek billions of dollars in damages for lost business opportunities.

"We plan to move forward with the litigation to hold MasterCard accountable for the illegal actions that blocked banks from working with us for many years and to seek full compensation for the value that would have been generated for our shareholders," said American Express Chairman and Chief Executive Kenneth I. Chenault.

Message Edited by TheCynicalOne on 11-10-2007 06:43 PM

---

**bleep** Amex. Cash Money...bling bling!

[Anonymous]

I think its weird that if Visa and Mastercard didn't do the fight to horde the merchants, 90% of cardholders probably wouldn't be V and M...they would all have Amex.  And there probably wouldn't be so much prestige with the brand name.

[Anonymous]

Good point. For some reason I liken this to an analogy of when I lived in Europe- sometimes people want what they can't have. I.E- Amex.

A real life example- when I lived in Europe as a teen there was beer and wine on every pub corner and cigarettes in machines everywhere. You know what? Except for a very, very small few- drinking was never a problem- cuz we could get it anywhere we wanted. There was no sneaking factor.

Food for thought. If Amex keeps loosening standards, keeps promoting their credit cards, it may lose it's prestige.