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American Express Co. today announced it is eliminating monthly fees on all its gift cards, effective immediately. The change makes American Express the first major issuer of general purpose gift cards to eliminate fees after purchase. The change applies to cards already purchased by consumers, as well as current cards in stores and those headed to the market in time for the holidays, Alpesh Chokshi, American Express president of the global prepaid division. "In essence, consumers spoke and we listened," Chokshi said. American Express is eliminating a $2 monthly fee that was deducted starting 12 months after the purchase date. For example, a $50 card purchased in January 2008 would began losing value in February 2009. "Consumers told us the monthly fees undermined the value of the card," Chokshi said. If the card expires before the funds are depleted, American Express will send a new card at no charge. Consumers will still pay a purchase fee, which ranges anywhere between $2.95 to $6.95. The cards are available in denominations ranging from $25 to $500. American Express also announced it will be the primary gift card provider for Simon Property Group Inc., a real estate company that manages malls and shopping centers. Consumers also soon will be able to purchase American Express gift cards in three new designs by artist Peter Max. Other customizable designs will give consumers the opportunity to write personal messages on the card to recipients. American Express also is releasing a card design in honor of the Lunar New Year and will be available in an $88 denomination. In Chinese culture, the number 88 represents good luck.
