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Amex Federal Court Ruling and SCW

Recently, American Express lost part of a Federal Court ruling.

The issues at stake were their higher-than-any-other card fees and a clause in the American Express merchant processing agreement that would allow Amex to terminate the merchant accounts of merchants who had been incentivizing the use of Visa, Master Card or Discover over the American Express Card.

The courts ruled that American Express could charge whatever fees they wanted, but that they could not terminate merchants who would rather people take a different card.

Why would a company want to incentivize the use of non-Amex cards? Because American Express typically charges much, much larger fees for the use of its card - for orders of the size that we typically process, this fee is usually around 5.55%.

Although the court order does not allow companies to pass this fee on, Section III.A of the court order does allow merchants to offer a discount or rebate for using other cards, among other potential incentives.

To help incentives the use of cards with lower fees, our coupon codes are only available for Visa, Master Card, and Discover transactions and those are the only options you will see online.

We do still take American Express, however, if you would still to purchase via American Express, you certainly still can, but you will need to call your order in during our normal hours of operation. A special Amex coupon code can be applied, but this coupon code is typically 5% lower than the coupons for Visa, Master Card or Discover.

Here at SCW, we know that some business clients who are purchasing extremely large systems may only have the credit space on their American Express cards or may wish to to process on an American Express card anyways. We want to give you as much flexibility as possible to do what is best for you, while also attempting to keep the costs of our products as competitive as we can.