Consumer complaint received 2023-06-27
Company: AMERICAN EXPRESS COMPANY
State: NY
Product: Credit card or prepaid card
Sub-product: General-purpose prepaid card
Issue: Trouble using the card
Sub-issue: Trouble using the card to spend money in a store or online

Complaint:
I received an American Express Prepaid Card but when I try to use it it is consistently declined. I have tried around 10 times to make purchases at XXXX and XXXX and received error messages, or notices that the payment method needs to be revised. I checked the balance several times on the Amex website and it shows the card as still having the original {$100.00} balance that was added to it. When I searched the internet about this problem to try to identify a solution, I instead found online forums where other people had experienced the same issue, with no resolution. The only tips I found from the company for resolving the issue were things like make sure the card isn't expired, make sure it still has a balance, and make sure the vendor requires the card number, expiration date and security code. I have done all of that ( the expiration date is XX/XX/29 ) and the vendors I was trying to use the card with both require the card number, expiration date and security code. When I called the Customer Service line I was transferred to another number, and then put on hold for 20 minutes. When I finally spoke to someone they told me that many online merchants do not accept their card, and they suggested that I use it at a physical store, and to call the merchant first to confirm that they will accept the card. I asked if they had a list of merchants that accept the card, and they said no. I told her that nobody wants to give someone a gift card that they have to spend hours trying to figure out how to use, and have to call around to merchants to find one that will accept it. And that if the card is only accepted at selected, physical merchants, they should make that clear, and list the merchants.I told the rep that I don't want to call around to stores, obviously, and that I want to use it to buy the things I want to buy, not to walk around trying to find stores that take it. Finally I asked if there is way to transfer the balance to me, to deposit it in my checking account or something. The rep then said she was going to put me on hold to check some information in my account, and then hung up on me. It is very clear to me that Amex is not eager to help people spend the money on their gift cards. Why would they be? 

I see that Amex was actually involved in at least one class action lawsuit in which they were accused of issuing gift cards that they say can be used " almost anywhere '' that many vendors do not accept. It is my belief, and the belief of others on the forums I visited, that Amex is intentionally selling gift cards that are difficult for users to spend the balance on, so that they are able to keep the funds. Even with a class action lawsuit settlement, I suspect they make more money issuing fraudulent gift cards than they pay out in a settlement. My boss gave me this gift card for my hard work at my job. He wanted to reward me, not give money to Amex, and not inconvenience me and give me a worthless gift card.

Company response to consumer: Closed with monetary relief