Despite Internet rumors to the contrary, American Express has not terminated its agreements with companies which offer adult-related merchandise and services. A notice with this rumor was received by AVN and when we enquired, it was met with an unequivocal denial by the Director of Media Relations for American Express. The following is the original letter to AVN and the American Express statement.
Original letter:
I received this E-mail from Internet Billing Service my credit card processor. Apparently American Express is decided to inforce a policy that violates my rights and yours. It is worth checking into and reporting on. This will effect the adult business without a doubt. What if other banks and credit card companies follow suit.
September 1, 1998 \n Dear Reseller Clients,
\r\n We have recently been notified by American Express that they have adopted a new and very rigorous corporate policy. Effective immediately they are terminating all merchant relationships with any business or third party processor who deals with any form of adult-related merchandise or content. This Amex policy change has a significant effect on many of our clients. \n Although we regret their industry-wide decision, our relationship with American Express and other card organizations remains a vital part of Internet Billing Company's future. We have always handled our relationships with the card organizations at the highest level of professionalism and integrity. We will continue to lobby American Express to have this policy overturned, but in the meantime, we feel that it is best to accept their policy change and discontinue any new sales from American Express cardholders. \n Our studies indicate that the reduction in new sales will be minimal. Most American Express cardholders have some other form of credit card available for their on-line purchases. With respect to items involving recurring billing, we will be sending an e-mail notification to American Express cardholders advising them to re-submit using another credit card for your site. The e-mail will contain all the appropriate site information. We realize this will create some fallout of rebill customers, however, a decision to continue accepting American Express transactions would only escalate the problem regarding rebill transactions with no guarantee of being paid. \n Internet Billing Company will continue to accept American Express transactions for non-adult clients.
Tim Arnel \n President & C.E.O. \n Internet Billing Company, Ltd.
\r\n Statement from American Express:
American Express has not terminated any relationships with online merchants based on the merchandise they sell or the content of their Internet sites. We do reserve the right to terminate our relationship with a merchant for reasons such as unacceptable customer service or a high incidence of customer complaints. We do not discuss individual merchant account information except with that particular merchant. American Express continues to be an accepted form of payment on e-commerce Internet sites as well as in traditional retail, travel and entertainment stores.
