BofA To Issue American Express Cards AsAmEx Drops Suit
NEW YORK - (12/28/05) American Express announced it will dropfrom Bank of America from a lawsuit it has filed against the twomajor credit card associations following a decision by BofA tobegin issuing American Express cards. American Express had filedsuit in 2004 claiming it had lost several-billion dollars in incomebecause rules at Visa and MasterCard had prevented institutionsfrom issuing AmEx cards. Under the agreement, American Express willprocess transactions made with the cards using its proprietaryprocessing network, while Bank of America will handle billing,customer service, and charge authorizations. American Express hadearlier reached similar deals with two other large banks that werealso members of Visa USA and MasterCard International.