Feds sue major credit card companies, allege policies hurt consumers

The Department of Justice today filed an antitrust lawsuit challenging business practices American Express, MasterCard and Visa use to prevent merchants from offering consumers discounts, rewards and information about card costs – anti-competitive behavior it says cost both consumers and businesses money.

The states of Connecticut, Iowa, Maryland, Michigan, Missouri, Ohio and Texas have joined the suit with the Justice Department – which also said it had reached a proposed settlement with two of the companies.