Amex, but Not Discover, Can Arbitrate Stores’ Chargeback Claims

American Express Co.‘s arbitration agreement with merchants covers their class action antitrust claims that arose when the credit card company transitioned its cards from using magnetic stripe readers to EMV chip readers, a federal court said.

But Discover Financial Services can’t compel arbitration on the same claims by the same merchants, Chief Judge Margo K. Brodie said Wednesday for the US District Court for the Eastern District of New York.

The merchants’ class suit alleges that Amex, Discover, Visa Inc., and Mastercard International Inc., conspired to violate federal antitrust laws by entering into an agreement to convert ...