American Express Takes Charge: Drops Dormancy Fees on Prepaid Gift Cards

2167422_0d6a_625x625Those holding American Express gift cards no longer need to rush to their favorite stores to use the balances. American Express, which has always charged monthly fees on unused gift cards, has dropped those fees as of September 30, 2009. American Express gift cards have long been a favored gift because they eliminate many of the restrictions associated with standard gift cards. American Express gift cards do not expire they charge no activation fee, no fees to replace a lost or stolen card, and no fees to check account balances.

This no-fee structure made them an attractive option, but the downside was the monthly service fee. This service fee could eventually reduce the value of a gift card to nothing, if you let the card remain unused long enough.

With this new announcement, that risk is no longer present. Customer”s can keep their gift cards for as long as they want, without having to worry about being charged dormancy or monthly fees. As Alpesh Chokshi, president of Global Prepaid for American Express, stated, “recipients now have a gift card that’s 100% gift, 0% fees.”

These changes apply to both the American Express Personal Gift Cards as well as the American Express Business Gift Cards. American Express gift cards have long been a favored gift because they eliminate many of the restrictions associated with standard gift cards. American Express gift cards do not expire they charge no activation fee, no fees to replace a lost or stolen card, and no fees to check account balances.

This no-fee structure made them an attractive option, but the downside was the monthly service fee. This service fee could eventually reduce the value of a gift card to nothing, if you let the card remain unused long enough.

With this new announcement, that risk is no longer present. Customer”s can keep their gift cards for as long as they want, without having to worry about being charged dormancy or monthly fees. As Alpesh Chokshi, president of Global Prepaid for American Express, stated, “recipients now have a gift card that’s 100% gift, 0% fees.”

These changes apply to both the American Express Personal Gift Cards as well as the American Express Business Gift Cards.

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