MasterCard and Visa ordered to let banks issue rival cards
Oct 10, 2001 | 7:46 am
#1
Original Poster
Join Date: Jun 2001
Location: Madison NJ; Watopia
Posts: 3,161
MasterCard and Visa ordered to let banks issue rival cards
By Andrew Hill in New York
Published: October 9 2001 23:30 | Last Updated: October 9 2001 23:32
A US judge on Tuesday ordered MasterCard International and Visa International, two of the largest credit-card issuers, to allow banks that are part of their credit card networks to issue rival cards, such as American Express or Morgan Stanley's Discover card.
In her ruling, however, US District Judge Barbara Jones said that the US government, which brought the case in 1998, had failed to prove that the governance structures of Visa and Mastercard - which are owned by banks - was bad for competition or the consumer.
News of the ruling drove shares of American Express higher by the time trading in the US ended. The stock closed at $29 and was continuing to rise - to $29.29 - in extended-hours trading.
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Published: October 9 2001 23:30 | Last Updated: October 9 2001 23:32
A US judge on Tuesday ordered MasterCard International and Visa International, two of the largest credit-card issuers, to allow banks that are part of their credit card networks to issue rival cards, such as American Express or Morgan Stanley's Discover card.
In her ruling, however, US District Judge Barbara Jones said that the US government, which brought the case in 1998, had failed to prove that the governance structures of Visa and Mastercard - which are owned by banks - was bad for competition or the consumer.
News of the ruling drove shares of American Express higher by the time trading in the US ended. The stock closed at $29 and was continuing to rise - to $29.29 - in extended-hours trading.
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Who is John Galt?
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Oct 10, 2001 | 9:53 pm
#2
Guest
Posts: n/a
Does this mean people who dont qualify for amex card will still be able to get them from say a chase
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Oct 13, 2001 | 6:06 pm
#3
Join Date: Dec 2000
Location: CDG, FRA
Posts: 1,600
Good news for Amex in the US.
The same should occur in Europe !
Example : France.
All bank cards are issued with the Carte Bleue group sign. This group owns the exclusive Visa license for France (not the banks), the exclusive Eurocard/Mastercard license, and the national french card license.
All banks in France have a contract with the group to issue cards accepted by almost all shops, and to withdraw money from all ATMs free of charge.
Also, the charges with a national card, Visa or Mastercard are processed by the Group.
As some bank decided to accept Amex cards in their ATM, the Group said the contract with the bank (the right to issue Carte Bleue cards) would be canceled in this case, that means :
- no more national cards
- no more Visa cards
- no more Mastercards !
That's why it's so difficult to find an ATM accepting Amex cards in France. The Credit Lyonnais Bank does, but for "foreign" Amex cards only (Amex cards issued in France are not accepted, as result of a deal with the Group).
[This message has been edited by ahrz (edited 10-13-2001).]
The same should occur in Europe !
Example : France.
All bank cards are issued with the Carte Bleue group sign. This group owns the exclusive Visa license for France (not the banks), the exclusive Eurocard/Mastercard license, and the national french card license.
All banks in France have a contract with the group to issue cards accepted by almost all shops, and to withdraw money from all ATMs free of charge.
Also, the charges with a national card, Visa or Mastercard are processed by the Group.
As some bank decided to accept Amex cards in their ATM, the Group said the contract with the bank (the right to issue Carte Bleue cards) would be canceled in this case, that means :
- no more national cards
- no more Visa cards
- no more Mastercards !
That's why it's so difficult to find an ATM accepting Amex cards in France. The Credit Lyonnais Bank does, but for "foreign" Amex cards only (Amex cards issued in France are not accepted, as result of a deal with the Group).
[This message has been edited by ahrz (edited 10-13-2001).]