Customers Convince AmEx to Get Rid of Gift Card Fees

In the past, American Express gift cards were subject to $2 monthly maintenance fees beginning one year after the card was purchased. Thanks to a push from customers who told AmEx the fees diminished the value of the gift cards, American Express has decided to change its ways.

Effective immediately, there will no longer be a monthly fee on AmEx gift cards. This is also true for cards which have already been purchased. So if you’ve been holding on to an AmEx gift card for a while, you can rest assured that your balance won’t slowly seep away.

There is still an upfront fee associated with gift card purchases, but monthly fees are a thing of the past. In fact, American Express has elected to do away with all fees after purchase.

Thanks to new legislation, other gift card issuers will have to rethink their own fee structures. In August of 2010, it will no longer be legal to charge dormancy fees on gift cards unless those cards have been inactive for one year.