American Express sued by U.S.

[DearAbby]

NEW YORK (CNNMoney.com) -- The Justice Department filed a lawsuit against Visa, MasterCard and American Express on Monday for allegedly anti-competitive practices that prevent merchants from offering discounts and raise prices for consumers.

Visa (V, Fortune 500) and MasterCard (MA, Fortune 500) agreed to settle the charges, but American Express (AXP, Fortune 500) denied wrongdoing and said it will fight the suit.

At issue are certain fees the companies charge merchants every time a consumer makes a purchase using their credit card, prosecutors said. These "swipe fees" totaled $35 billion last year, according to the Justice Department.

The lawsuit, filed along with seven state attorneys general, alleges that the credit card companies have put in place rules that block sellers from offering consumers lower-cost payment options.

More:

http://money.cnn.com/2010/10/04/news/companies/american_express_justice/index.htm