Amex's move puts it ahead of competitors for now, though most card issuers will have to offer similar policies by next year, when the gift card provisions of the credit card act go into effect. That law will still allow card issuers to charge "dormancy" fees, but only after a card has been unused for 12 months.
Amex, not surprisingly, is touting the consumer benefits of its new policy and downplaying the regulatory aspects:
"We think this is great for the consumer. It's great for the industry. It's right for the times," said Amex's Alpesh Chokshi. "It's not being driven by Washington. "What we're doing here is going far, far beyond that and saying there will never be monthly fees."
Chokshi didn't have much to say about buyers of gift cards, who will still have to pay upfront fees. But at least if you receive an Amex gift card and find it in the sock drawer five years from now, you'll still be able to use it.
American Express Drops Fees on Gift Cards [Washington Post]
]]>The original purchaser also gets whatever cash-back or points benefit they derive from the transaction.
]]>Lastly, while I may never understand this, people often wait years to spend gift cards. I've even seen people try to redeem paper gift certificates from 1991. This year. Go fig!
]]>You are a well respected gift giver.
]]>It's irresponsibility and there should not be a law supporting your bad behavior.
]]>Come on... this isn't 2003 when IE had some 92% market share. And RBS's IE-only policy might have lead to their big 1.5-million-card gift card data breach in the first place.
]]>I tell my family that they should under no circumstances buy me a gift card. I made the mistake a few years ago of buying something for $4 and some change off a $25 card. The next time I used it, I wanted to spend the rest, but the computer couldn't read the amount, so I had to guess. Granted, I only lost a few cents, but it was irritating that I'd have to spend $1.50 to find out how much I had left.
If my family feels the need to buy one of those cards, they go to TD Bank which at least doesn't charge members for activation fees.
]]>Unless I know someone wants something specific, they get cash for all special occasions (birthdays, holidays, etc.) Now my Christmas shopping takes me all of one hour to complete.
Why give these companies an INSTANT 2.95 - 5.95% return on money plus fees and breakage when banks pay me scheiße.
]]>@cabjf: I think in most cases, people give gift cards so they won't remind themselves that if they give you cash, you'll probably buy gas or pay bills. People want to give things that have meaning, even though being able to pay off my car loan is pretty meaningful to me and I'd love it if I got cash instead of the umpteenth sweater.
When it comes to the general Visa/AmEx cards, I'm not sure if you can use those at gas stations or to pay bills.
]]>I like giftcards like this if they can be used for online shopping. Gift cards help me keep "my money" from gifts from being sucked into our normal household money. When I get checks or cash I don't seem to be able to spend it on myself.
]]>/Have a gift certificate for godiva chocolate that's still technically good (since they don't expire ever in CA), however, I would have to go into the store to use it as it's so old their online system doesn't recognize it.
]]>@cabjf: No idea. My cousins gave me an Amex gift card for my graduation and it cost them like $5 in upfront fees. Why they would even consider a gift card like that when most are free (and cash or check is always free!), I don't know.
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