Payments News

American Express Will Shave Its Discount Rates To Grow Merchant Acceptance

Mar 11, 2018

In an effort to make its cards more financially attractive to merchants, American Express Co. plans to cut its worldwide discount rate by potentially up to three times the level it had previously predicted for 2018.

AmEx, generally the costliest of the major card brands for merchants to accept, typically cuts its average discount rate slightly each year in the face of network competition for acceptance in both the U.S. and abroad. In earlier guidance, the New York City-based card issuer and network had predicted its average worldwide discount rate would fall 2 to 3 basis points (0.02 to 0.03 percentage points) this year. But in a March 7 Investor Day presentation, the company upped the predicted reductions to 5 to 6 basis points.

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