The American Express approach to merchant pricing reflects:

1. Transparency and Consistency. Our merchant discount rates are transparent, simple and consistent across all of our credit and charge card products.
2. No Interchange. American Express does not operate an interchange system in which interchange rates paid to card issuers are set centrally and applied to all issuers; rather,  Issuers’ Rates are agreed with each issuing partner bilaterally.
3. Simple Pricing Structure. We do not operate a structure of multiple interchange rates that vary based on a complex set of criteria with the result that the merchant pays more for one card than another and has difficulty understanding the true cost of card acceptance.
4. Value. American Express merchant pricing is and always has been based on the value we deliver to merchants.

American Express rates are generally based on a merchant’s industry, annual American Express charge volume, transaction channel and, in some cases, transaction size. The merchant receives a lower discount rate for prepaid cards and a reduction in the merchant discount rate for corporate purchasing cards, when the merchant provides enhanced transaction data. American Express does not have product-based pricing for our credit and charge cards; our merchants pay the same discount rate for transactions regardless of the type of American Express credit or charge card that is presented. Our merchant pricing is developed based on these factors, independently of any compensation that our proprietary issuing business or licensed issuers receive. American Express complies with the Code of Conduct in providing notice if there is a change in pricing.

American Express is willing to continue to promote transparency in merchant pricing and competition through its unique and pro-competitive network business model by offering the following commitments to the Government of Canada for at least a period of 3 years:

1. American Express will apply the same rates for the acquiring of credit and charge card transactions for a particular merchant regardless of the type of American Express credit or charge card that is presented. Different rates may apply to certain specialized card types such as a lower rate for prepaid cards and a reduction in the rate for corporate purchasing cards when the merchant provides enhanced transaction data.
2. American Express will continue to operate a non-interchange based network. We will continue to agree bilaterally with each licensed issuing partner on the amount that the issuer will receive for cardmembers’ spend (the Issuer Rate), and the Issuer Rate will continue to be derived from, and not determinative of, pricing for the acquiring of credit and charge card transactions.