American Express has reached a class action lawsuit settlement over claims the company failed to notify consumers about the full terms and conditions of its gift cards. If you purchased, received, held or used an American Express gift card between January 1, 2002, and October 15, 2013, you may be eligible to claim a number of cash awards, up to a maximum of $40. The class action settlement even provides benefits to non-Class Members, including a refund of the unused balance of their gift card at no cost.

Following mediation, the parties agreed to a settlement in the class action lawsuit Kaufman v. American Express that alleges American Express engaged in deceptive marketing and sales practices. American Express has denied all allegations of wrongdoing but agreed to settle the class action lawsuit to avoid the burden, expense and uncertainty of continuing litigation.

The plaintiffs filed the American Express gift card class action lawsuit in 2009, alleging that American Express failed to notify purchasers of the full terms and conditions applicable to its gift cards, specifically in regard to significant and material limitations on the use of the American Express gift cards. They allege that this failure caused consumers’ to be unable to utilize the full value of the gift cards because merchants either could not or refused to process split tender transactions (use of two forms of payment). Further, they allege that American Express improperly applied fees against the available gift card funds.







Class Members include all purchasers, recipients, holders and users of any gift cards issued by American Express from January 1, 2002, until September 21, 2011.

Under the terms of the American Express gift card settlement, Class Members can claim the following:

Class Members who unsuccessfully tried a split-tender transaction can get up to $20.

Those who incurred monthly fees can get up to $8.

Those who paid a check issuance fee can get up to $5.

A Class Member can claim one or all of these amounts, but no Class Member may get more than $20 per gift card or $40 total. Those who incurred a monthly fee or check issuance fee after unsuccessfully trying a split-tender transaction, but who do not know their American Express gift card number, can get a total of $5.

All Class Members will be able to buy a new $100 gift card without paying any purchase fee (typically $3.95) or shipping/handling fee (typically $5.95). The class action settlement also offers anyone (even a non-Class Member) who has an American Express gift card, or a gift card number without the actual card, with a value of $25 or less a refund of the unused balance at no cost.