This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

American Express Statement On The European Commission Proposals For Regulation Of Card-Based Payment Transactions

Stocks in this article: AXP

American Express Company (NYSE: AXP) today issued the following statement in response to the European Commission’s draft proposals to regulate card-based payment transactions in the European Union (EU):

“Today’s proposals are the start of a lengthy process and American Express will be actively engaged with policymakers to help ensure that European Union policies:

  • Encourage more vigorous competition;
  • Serve the interests of consumers and merchants;
  • Encourage innovation and investment in European payment services;
  • Prevent further entrenchment of the two dominant, inter-bank networks.

“Elements of the proposals issued today broadly affirm that:

  • Our merchant discount rate would not be regulated;
  • Transactions in our proprietary business would not be directly covered by the pricing caps;
  • The requirement to separate network processing functions would not apply to transactions in our proprietary business and most, if not all, transactions involving our issuing or merchant acquiring partners;
  • Commercial payments would not be directly covered by the pricing caps.

“Consistent with our initial assessment, most transactions in our Global Network Services (GNS) business would fall within the scope of the proposed pricing caps. Certain proposals would also regulate how we grant licenses to GNS partners. The GNS business is an alternative to the two dominant inter-bank networks. It allows select European financial institutions to offer differentiated value to their customers by issuing cards and/or acquiring merchants on the American Express network.

“Unlike the two dominant networks, American Express does not set prices collectively or operate on the basis of inter-bank arrangements. Authorities around the world, including those in Europe, have not found our pricing practices to be anti-competitive and have not challenged our licensing arrangements. We believe that any new regulatory framework should recognize fundamental differences in business models and market positions.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,448.01 +60.80 0.35%
S&P 500 2,030.10 +0.55 0.03%
NASDAQ 4,692.9460 +11.4490 0.24%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs