A federal judge's ruling that ends Visa and
MasterCard's practice of barring member banks from issuing credit cards from
competitors such as American Express and Discover is likely to trigger a tidal
wave of competition for consumers' business. But in the corporate world of
purchasing cards, does this give anyone a leg-up?

American Express claims it does. The October ruling by U.S. District Judge
Barbara Jones enables Amex to pursue ventures with banks similar to the ones it
has overseas. American Express is a partner with 70 financial institutions in 77
countries to offer corporate cards under those institutions' names and believes
Jones' decision will enable it to strike similar alliances with U.S.-based

Yet some experts say that the ruling isn't likely to change the p-card landscape
too significantly. My gut feeling is that because purchasing programs take
up a lot of resources, issuing banks aren?t likely to take on a new purchasing
card product, says Stephanie King, president of CPR Consulting Inc., a
Livermore, Calif.-based consultancy that focuses on the p-card sector.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.