Justice Department Sues Credit Card Companies

Washington, DC, Oct. 5, 2010--On Monday, the U.S. Justice Department sued credit card companies Mastercard, Visa and American Express for anti-competitive practices.

The charges stemmed from the Department's claim that the companies were trying to insulate themselves from competition.

The Department has already reached a proposed settlement with Mastercard and Visa. The companies will not pay any penalities under the settlement.

Instead, the settlement will give merchants the ability to influence what type of payment forms their customers use, offering rebates, discounts or other services for particular payment forms.

American Express chief executive Kenneth I. Chenault reports that his company has no intention of settling.