A federal judge ordered American Express Co. to revise its merchant agreements to allow them to steer customers to other forms of plastic payments, including debit cards.

The order implements a February ruling by U.S. District Judge Nicholas Garaufis that New York-based American Express violated antitrust laws by not permitting merchants to encourage customers to use cheaper cards. His ruling followed a bench trial last summer.

American Express reiterated that it will appeal the decision, saying it will hurt competition.

Write to Robin Sidel at robin.sidel@wsj.com

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