Page last updated at 14:36 GMT, Wednesday, 25 June 2008 15:36 UK

Mastercard in $1.8bn Amex payment

American Express sign
Amecican Express had accused credit card firms of "cartel" behaviour

American Express says it is to accept a payment of about $1.8bn (0.9bn) from Mastercard after it sued the credit card giant and some large US banks.

In 2004 American Express filed a suit saying Mastercard, Visa and their member banks had illegally blocked it from the US bank-issued card business.

American Express had accused Mastercard of conspiring to prevent some banks from issuing its credit cards.

Mastercard agreed to make 12 quarterly payments of $150m to American Express.

Last year, the company reached a settlement with Visa in a similar suit.

"We are pleased to have reached a settlement that will enable us to keep our strong balance sheet intact," said Mastercard boss Robert Selander.

He said the deal removed "the uncertainty, time commitment and expense of a prolonged court case".

Mastercard had remained the sole defendant in the lawsuit.

American Express had claimed that an association of credit cards had carried out "anti-competitive practices" that had prevented 20,000 US banks from using Amex credit card products.

It had also accused the card associations of functioning "as a cartel".

Visa makes $2.1bn Amex settlement
08 Nov 07 |  Business
More credit card use boosts Amex
22 Oct 07 |  Business
Amex is suing Visa and Mastercard
15 Nov 04 |  Business
Credit card giants lose court bid
04 Oct 04 |  Business
US credit card battle hots up
30 Jan 04 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2017 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific