American Express eliminated the $2 monthly fee effective immediately, even on gift cards that have already been bought. But other fees remain.

American Express said the change is not in response to the new gift card reforms as part of the new credit card law passed  this year. Hmmmm…….

Starting in August 2010, that law bans gift card  issuers from putting an expiration date on gift cards, unless it’s at least five years after the card was loaded.

Eliminating the monthly fee is not a reaction to the new gift card law, according to Alpesh Chokshi, president of the global prepaid unit at American Express. “There’s no relation. We’ve wanted to take (the fee) away for years,” he said. “We’re simply listening to our customers.”After introducing gift cards five years ago, the company says it now issues $1 billion in gift cards a year.

American Express said most of its gift cards are used within a year, but it gets many customer complaints about the gift card fee.

The upfront charge of $2.95 to $6.95 for gift cards will remain the same.

Tagged as: Bank Deals

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