NEW YORK, Jan 16 (Reuters) -

American Express ( AXP ) said on Thursday it will pay about

$230 million to settle U.S. criminal and civil probes into

alleged deceptive practices in selling credit card and wire

transfer products to small business customers.

The credit card and travel services company agreed to

pay $138.4 million, including about $108 million in fines, and

enter a non-prosecution agreement to end criminal and civil

probes by the U.S. Department of Justice.

Amex said it also reached an separate agreement in

principle with the Federal Reserve that should become final in

the coming weeks.

The New York-based company said it cooperated

extensively with investigators, discontinued some products,

disciplined staff, and upgraded compliance and training.

Amex also said the problems identified by investigators

ended no later than 2021, and the payout does not affect its

2024 earnings forecast.

The Justice Department alleged that from 2014 to 2017,

Amex misrepresented card rewards and fees, and whether credit

checks would be done without customers' consent, and submitted

false financial information for prospective customers.

It also said that from 2018 to 2021, Amex misled

customers in sales pitches about the tax benefits of wire

transfer products known as Payroll Rewards and Premium Wire.

These products were the subject of the non-prosecution

agreement.

That agreement contained many internal communications

about the products, such as employee complaints calling Premium

Wire a "very questionable product" where customers could "write

off expenses as a business expense and benefit personally."

The Justice Department also faulted Amex sales staff for

deceiving regulators by entering "dummy" employer identification

numbers such as "123456788" when opening small business credit

cards, to replace discontinued co-branded Amex cards.