American Express Gift Cards to Increase Purchase Fees Online and More Changes Coming June 26

American Express sent out an email to users about changes coming on June 26th to the American Express gift card online system:

1) Your American Express login credentials will not work after the 26th, and you’ll have to create a new login then. This new login will not be tied to your American Express Credit or Charge Account. (That’s a pain in the neck, in my opinion. Not sure why they had to do this.)

2) Be sure to login now if you have any account history you want to save since nothing will show after June 26.

The new site will include changes such as:

  • New Card designs
  • Option to add a customized message to all Cards
  • Ability to load any amount between $25-$3,000 on all Cards
  • Easy reorder
  • Variable Purchase Fee pricing from $3.95-$6.95

Currently, all cards have a fixed purchase fee of $3.95. Beginning June 26, the larger cards will apparently have a $6.95 purchase fee.

American Express gift cards have lost their allure for most of us since they stopped paying out on the portals (when they are showing on the portals, it’s only for smaller card denominations). Furthermore, some card issuers aren’t happy with manufacturing spend to meet spend requirements so it’s less useful for that. I guess this is more of a sentimental post than anything else.

Amex also offers a promo code to waive purchase fees through June 25th with promo code: THANKS2018. Keep in mind there still are shipping fees.

There’s also a deal going on until August 1 to get no shipping or purchase on small Amex gift cards. 

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24 Comments
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Vy
Vy (@guest_604708)
June 12, 2018 13:51

Do Amex cards (both gift cards and credit cards( have ANY advantages over Visa ones?

AmEx has lower acceptance worldwide, is difficult to MS, has higher interchange fees, and now has higher purchase fees on gift cards. What allure is left?

calwatch
calwatch (@guest_604897)
June 12, 2018 23:52
  Vy

Sometimes I used to buy them for normal spend at Costco, but now that’s no longer relevant.

Judy Jones
Judy Jones (@guest_604699)
June 12, 2018 13:37

Do these even count for spend any more on new credit cards, or do they code so there are no miles? I used to buy tons of these in the old days but got away from them.

JC
JC (@guest_604677)
June 12, 2018 12:47

The likely reason for the change is that American Express sold their prepaid division in early 2018 to ImComm which included Serve, Bluebird, and gift cards. As such, these cards are no longer going to be directly issued and managed by American Express but rather only run on the American Express network. This also likely explains the increase in fees. Additional information can be found at http://www.businessinsider.com/amex-sells-off-prepaid-business-sort-of-2017-8.

Lantean
Lantean (@guest_604655)
June 12, 2018 12:03

Yes Amex, make people crate another idiotic log-in for another one of your websites… makes so much sense, we can’t wait Amex!

bax
bax (@guest_604680)
June 12, 2018 12:49

Now tell us how you really feel. LOL

Lantean
Lantean (@guest_604685)
June 12, 2018 12:58

I thought it was fairly obvious.
😉

JohnFromATL
JohnFromATL (@guest_604726)
June 12, 2018 14:16

Amex sold their prepaid business to InComm. I am sure this is all part of the effort to turn over those accounts to InComm.

Lrdx
Lrdx (@guest_604651)
June 12, 2018 11:59

How is this an increase if the fees go from $6.95 to $6.95 or less?

Lrdx
Lrdx (@guest_604664)
June 12, 2018 12:17

Ah, that makes sense now 🙂

bax
bax (@guest_604682)
June 12, 2018 12:50

Was scratcing my head about the same thing.

projectx
projectx (@guest_604637)
June 12, 2018 11:40

I kept reading that email hoping the cards would now be PIN enabled, but nope. Wishful thinking I know… but Redbird sounded like a dream when it happened, so stranger things have happened.

Nicholas
Nicholas (@guest_604667)
June 12, 2018 12:22

It seems like it was just a dream, it was so brief.

1) 4% portal cashback plus 2% from Arrival or FIDO Amex
2) $3.95 fee for a $3k card
3) The 3 month free overnight shipping trial
4) Liquidation – 2 grand per Redbird per day

With 3 birds, one could net $350+ with a 15 minute time investment.

Leo
Leo (@guest_604750)
June 12, 2018 15:01

Why on Earth were you purchasing Amex gift cards to load to your redbird when you could just load the credit cards directly to the redbird for no fees or hassles?
THAT was the dream….

jags
jags (@guest_604827)
June 12, 2018 18:15

Because you could get the portal bonus on purchasing the gift cards and the credit card rewards vs. just the credit card rewards by loading Redbird direct.

Nicholas
Nicholas (@guest_604878)
June 12, 2018 21:44

Because math. 6% > 2%

Leo
Leo (@guest_604889)
June 12, 2018 22:31

Still not counting costs. Ok. Whatever.

86
86 (@guest_604839)
June 12, 2018 18:51

PIN-enabled would be nice.

Max
Max (@guest_604634)
June 12, 2018 11:37

Who actually buys these? I get that VGCs are a tool for the unbanked, but what Amex customer is unbanked? These are garbage financial products marketed to people who absolutely don’t need them.

rick b
rick b (@guest_604638)
June 12, 2018 11:40

Most legitimate buyers get them as gifts. Incentives for employees, graduation gifts, employee prizes, etc. They couldn’t care less about MS or PIN.

I wonder if they’ll still retain the same incompetent service and getting lost in the mail LOL. I once got $5k of cards with some other guys name on it. Talk about dangerous incompetence. Had to call them up and say “hey you sent me 5k of someone else’s money, where’s my 4k?”

Dave P
Dave P (@guest_604746)
June 12, 2018 14:52

Exactly. Corporate giveaways/promos, employee incentives. That’s the real target market.

Shaun
Shaun (@guest_604735)
June 12, 2018 14:36

American Express will sometimes have an offer for $10 off a $200 gift card. I’ve used promo codes before for no fees plus the $10 off. Get 5% off everything you buy for a bit.