Complain about a product or service

Citigroup Next to Issue Amex Cards

December 14, 2004
Citigroup, the largest credit card company in the world, has signed on to issue American Express cards, the second major card issuer to do so since the Supreme Court declined to hear an appeal from MasterCard and Visa. MBNA issued its first Amex cards last month.

Amex Unleashed • Citigroup Next to Issue Amex Cards • MBNA Switching Some Customers to Amex Cards

The new cards will bear both Citibank and American Express logos and will be introduced in late 2005, the companies said.

MasterCard and Visa for years have prohibited their member banks from working with other brands, like American Express and Discover. But in October, the Supreme Court let stand a lower court decision that struck down the rules, opening the door to new business arrangements that proponents say will be beneficial to consumers.

The CitiBank and MBNA deals give American Express access to about one fourth of the U.S. credit card market, putting it in a good position to steal business from its rivals. American Express is expected to offer lower interest rates, at least initially, and to promote its supposedly superior customer service and awards programs.

The American Express card is also thought to appeal to big spenders, whose pockets the banks are always eager to pluck.

American Express, meanwhile, is suing a number of other banks, including Chase, Capital One, Bank of America, Wells Fargo and J.P. Morgan, for monetary damages. The suit also names Visa and MasterCard.

Merchants are unlikely to be gleeful about the shifting alliances. American Express typically charges merchants higher interchange fees than Visa, MasterCard and Discover to process credit-card transactions. This also makes banks happy since they get a slice of the fee.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Back to the top |

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2009 ConsumerAffairs.com Inc.  All Rights Reserved.    The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission.