False. When a customer launches a new product I judge its potential and I act before they materially impact our business. American Express does this, and they have the additional advantage that both Chase and Citi hired former Amex executives to manage their card programs. American Express knows where Chase and Citi are trying to go before they even get started.

American Express isn't cutting discount rates across the board. They are going to offer lower rates strategically to obtain new acceptance, and this will have the effect of lowering the average to about 2.37%.