Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, September 14, 1993 TAG: 9309140081
SECTION: BUSINESS PAGE: B6 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Medium
In advertising splashed across two pages of The New York Times, American Express claimed Visa got its cards banished from the tennis tournament by offering merchants free advertising. It accused Visa of seducing the Open with no regard for consumers.
The ad, another round in a long-running feud between the two companies, invited American Express card holders to call a toll-free telephone number to complain.
Visa called the ad "more hot air from American Express" and defended its deal.
Visa started running ads in 1985 featuring merchants that accepted Visa cards but not American Express, Visa spokesman Brad Hennig said. About 30 businesses or events, including the Olympics, have been profiled in the campaign.
Visa's U.S. Open ads began running in June. They recommend fans bring their Visa cards "because the Open will take you to the edge of your seat, but they won't take American Express."
Last Friday's ad was far less subtle than American Express' responses to previous such commercials.
"An important message for consumers from American Express," the headline stated. "How Visa seduces well-known merchants into dropping the American Express card."
It said the strategy went like this: "Strike a deal with prominent merchants, promise them millions in advertising, but throw in a catch. The catch is they must stop accepting the American Express card."
The ad went on to say that such deals result in consumers having "less freedom of choice, fewer payment options and the opportunity to pay interest on an event you saw a month ago."
Banks that issue Visa cards charge interest on unpaid balances. American Express requires payment in full each month and thus has no interest charge. Its annual fees are often higher than Visa's.
American Express spokeswoman Maureen Bailey said the company decided to run the ad after being told by vendors at the Open that Visa's sponsorship deal prevents them from taking the American Express card.
Visa's Hennig said the exclusive deal was proposed by the Open and is standard for full sponsors.
Hennig also said he doubted many people are inconvenienced by the exclusion of American Express; he said most people with credit cards carry more than one.
by CNB