January 19, 2001, 12:00 AM

Amex To Drop Online Adult Merchants

American Express Co. will no longer allow online sellers of adult content to accept its cards due to persistently high levels of disputed transactions. A company spokesperson tells Faulkner & Gray, publisher of Internet Retailer, that AmEx decided on the new policy this month when its attempts to reduce customer-dispute rates in the industry proved unsuccessful. "It was not practical or profitable to do business with these merchants anymore," the spokesperson says. The New York City-based company is now informing those of its current merchant clients affected by the change.

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