This is an ongoing investigation which has led to a pending class action lawsuit against American Express Company in which it alleges that American Express wrongfully charged merchants and retailers a fee for goods and services not actually purchased using an American Express card.
American Express cards are held by millions of business and consumers throughout the country. American Express requires a merchant, retailer and any business for that matter to enter into a contract with American Express if that merchant wishes to allow a consumer to purchase that merchant's products using an American Express card. That contract provides that when American Express extends credit for a purchase, the merchant must pay a percentage of that sale to American Express. American Express's fee is called a "merchant fee" or "discount fee".
The class action lawsuit alleges that American Express charges a merchant fee on items returned or items where American Express does not actually extend credit. The class action lawsuit alleges that American Express's practice of charging a merchant fee on items returned or for which credit is not extended is not disclosed in the agreement merchants are required to execute with American Express.
Name (Stock Symbol)
American Express Company (AXP)
American Express Company provides charge and credit payment card products and travel-related services worldwide.
The information provided on ClassAdvocate.com is general in nature,
does not apply to any particular factual situation, and is not and
should not be taken as legal or other professional advice. We make no
commitment or warranty that the factual, legal or any other information
on ClassAdvocate.com, or on any linked website, is accurate, complete,
error-free, or current. As such, you should not rely on such information,
and should seek professional advice if and as you determine appropriate.
ClassAdvocate.com is not a lawyer referral service, and no attorney-client
or confidential relationship is or should be formed by use of the site.
The investigations listed on ClassAdvocate.com are attorney advertisements
and do not in any way constitute a referral or endorsement by ClassAdvocate.com
or any approved or authorized lawyer referral service.