Amex Waives Arbitration Right in 'Swipe Fee' Case Decision

American Express has been dealt a setback by the US appeals court in a case related to its merchant fee policies. The company had sought to move class action claims out of federal court and into arbitration, but the court ruled that it waived this right when it failed to pay fees to open arbitration.

The decision was made by the 1st Circuit on August 21, 2026. According to the ruling, American Express' refusal to pay the filing fees set by the arbitrator resulted in the foreseeable outcome of closure of those arbitrations.

It's worth noting that this is not a direct ruling against American Express' arbitration agreements with merchants, but rather a specific case related to the company's handling of arbitration fees. The court's decision highlights the importance of paying attention to the details of arbitration agreements and the potential consequences of failing to comply with their terms.

The outcome of this case may have implications for future disputes between American Express and its merchants, but it remains to be seen how this ruling will impact the broader landscape of arbitration in the financial industry.