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MasterCard to pay $1.8 bn to settle AmEx suit

(Agencies)
Updated: 2008-06-25 20:44

NEW YORK -- MasterCard says it will pay about $1.8 billion to American Express to settle an antitrust lawsuit.

This undated phot shows the credit card of the MasterCard company. [Agencies]

The Purchase, N.Y., credit card company says it will make 12 quarterly payments of $150 million to its rival. MasterCard plans to book a $1 billion charge related to the settlement in the current fiscal quarter.

American Express has confirmed the terms of the settlement. It has accused MasterCard of illegally blocking American Express from the bank-issued card business.

American Express is also warning that business is getting weaker in the US, with things deteriorating more than it expected this month.