AMERICAN Express has filed a complaint with the European Commission charging Visa International with anti competitive behaviour in the European credit card industry.
American Express (Amex) said a new by law being proposed by Visa would limit competition by restricting member banks ability to offer more than one kind of card.
Amex does not currently issue its cards through any of the Irish banks, while most of the Irish banks issue Visa cards.
"American Express today filed a complaint charging that Visa International is engaged in anti competitive activities, in violation of the Treaty of Rome, by advocating that banks issuing Visa cards be prohibited from also issuing American Express cards" it said.
Visa International said yesterday it was surprised that Amex had filed a complaint.
Amex said the Visa proposal would limit competition by restricting member banks' ability to offer more than one kind of card.
"Visa would not implement a change in its rules that would contravene [European Union law]," Visa said in a statement.
It said it was in the interests of Visa and its members to make credit cards available to as many consumers as possible.
In its complaint, Amex said Visa International was breaking European Union rules prohibiting action which restricts or distorts competition or abuses a dominant position in the 15 nation bloc.
It said the proposed by law would force banks to stop offering their customers a choice of carrying an American Express card, a Visa International card, or both.
"Visa is attempting to eliminate competition in the card marketplace and limit consumer choice throughout Europe. If it is allowed to go unchecked there will be nothing to prevent... giving Visa further control over distribution in the European card system," the statement said.
Mr Jurgen Aumuller, president of American Express Europe, said the by law had not yet taken effect.
"The by law has not been decided but the Visa association has taken the initiative to introduce the by law and we want to prevent [that] situation," he said.
He said American Express had partner banks in Europe with which it had contracts and other banks with which it was negotiating contracts "and we want toe make sure there is a freedom in the market place and [that] those banks can issue American Express cards besides the Visa franchise".
He said the proposed Visa by law would force the banks to issue Visa cards only, limiting competition and consumer choice.
"What we hope is that the Commission will confirm to the market players that there is free competition and therefore a free offer of product ranges," he added.
