Gift cards have grown in popularity over the last four years. This is an investigation and a pending class action against American Express for its business practices relating to its gift cards.
The focus of the investigation is American Express' conduct of placing the terms and conditions inside a sealed envelope at the retailers, never disclosing that many retailers would not accept the Amex Gift Cards uniformly as partial payment for goods and services (called "Split Tender Transaction"), insuring that remaining balances in gift cards will remain unused until they can be consumed by American Express' $2 a month charge for every month there is an outstanding balance on the card. American Express also charges a $10 "check-issuance fee" to pay the remaining available balance on a Gift Card to the owner of the Gift Card.
Name (Stock Symbol)
American Express Company (AXP)
American Express Company provides charge and credit payment card products and travel-related services worldwide.
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