Amex CEO Condemns Merchant Surcharges

“Our card members should not be discriminated against,” Steve Squeri said at the Goldman Sachs U.S. Financial Services Conference. “I think surcharging in general is a really bad customer experience.”

The CEO used his time at the conference to highlight a key difference between its payment network and the broader card industry: how interchange and merchant fees impact card acceptance and customer experience. 

Amid ongoing industry debate around a proposed Visa-Mastercard interchange settlement that could lead to more merchant surcharging, Squeri told investors that potential surcharge behavior would bring about worse outcomes for consumers and less trust in card acceptance.

Squeri said it was premature to quantify the impact of the proposed settlement on American Express, but argued that premium cardholders should not face additional costs at checkout, even if merchants feel pressure to impose them following changes to the “honor all cards” rule. 

Aside from the interchange issue, Squeri reaffirmed American Express’ financial outlook, saying the company is on track for 9% to 10% revenue growth in 2025, helped along by robust spending trends and continuing success with product refreshes, including upgrades to its Platinum Card portfolio. 

The CEO also noted the company’s growth on an international scale, saying that its overseas business is once again the fastest growing segment following a prolonged slowing in the wake of the pandemic.

“You look at the third quarter, for example, within the third quarter, you had Canada, Australia and Japan growing at 18%,” he said. “We’ve got millennial and Gen Z spending growing low 20%. We’ve got Platinum growing at 23%, 24%. So it’s gone really, really well for us.”

Squeri also explained how the company’s closed-loop network and partner-funded value help sustain margin and customer engagement even amid interchange pressure. By embedding benefits like expanded lounges, hotel perks and lifestyle incentives, American Express aims to alleviate merchant cost concerns without passing those costs directly to card members.

Recent PYMNTS coverage has examined many of these themes. In September, PYMNTS reported on American Express’ sweeping Platinum Card upgrades and how the company is leaning into premium benefits rather than price incentives to drive engagement.

“We listen to and talk to our card members all the time. And what customers have been telling us is they wanted to have more rewards for the spend that they will incur and are always looking for new sets of tools to help them run and grow their business more efficiently,” Raymond Joabar, group president, Global Commercial Services at American Express, said in an interview with PYMNTS CEO Karen Webster.

As interchange scrutiny increases throughout the industry, Squeri’s remarks reinforce American Express’ belief that controlling the customer experience — rather than simply negotiating fee mechanics — will be critical to its competitive position.