MasterCard, Visa Settle as Amex Fights U.S. Lawsuit

Visa Inc. and MasterCard Inc. reached a settlement with the U.S. Justice Department that will let merchants reward consumers for paying with lower-cost credit or debit cards, while American Express Co. vowed to fight a government antitrust lawsuit.

Today’s settlement means that about 4 million merchants across the U.S. that accept just Visa and MasterCard are now free to steer customers to different credit cards or forms of payment by offering discounts, rebates or other special treatment, the Justice Department said. Six million more retailers who also accept cards from American Express are still subject to restrictions until the lawsuit is resolved, the Justice Department said.