(Payment News)

HSBC -- North America Holdings, Inc. and American Express have announced an agreement for HSBC to offer American Express-branded credit cards in the United States. American Express has also announced that it will dismiss HSBC from its antitrust litigation against Visa, MasterCard and a number of major U.S. banks.

Under the terms of the agreement, HSBC will issue the cards, manage customer relationships and be responsible for all marketing, billing, charge authorizations and credit management. American Express will process transactions through its merchant network and the cards will be welcomed at millions of locations worldwide. HSBC expects to begin issuing cards in mid-2006. Financial terms of the agreement were not disclosed.

HSBC is one of the world's largest card issuers. The partnership with American Express will allow HSBC to expand its product range and offer broader choice, value and convenience to customers and prospects.

"HSBC is pleased to embark on a key partnership with American Express," said Walter Menezes, group executive-HSBC Card Services. "The addition of the American Express card to the existing HSBC product offerings will provide consumers with a broader scope of quality services."

"We are delighted to enter into this agreement with a world-class organization like HSBC," said Barry Rodrigues, executive vice president of American Express' Global Network Services. "We look forward to working closely with our newest partner to provide a compelling new line of premium products."