American Express purposefully jacked its FX prices for small businesses without telling them, according to a new report (AXP)

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• A new report by the Wall Street Journal alleges that American Express lured small companies into attractive foreign exchange deals, then later jacked the rates.
• The logic, according to the Journal, was to increase AmEx’s profits without making their clients aware.
• Sources said the company chose smaller clients because they were less likely to watch exchange rates closely and notice a difference.
• American Express pushed back, and said their approach to foreign exchange is “fair and transparent.”

The foreign exchange business at American Express reportedly spent more than a decade deliberately hiking its exchange rates for small clients it thought wouldn’t notice the difference, current and former employees have told The Wall Street Journal.

According to the Journal, the company’s sales team would gain clients by offering them low rates, then later increase them without explicitly saying so. This meant more money for American Express.

See the rest of the story at Business Insider

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