Avoid AmEx gift cards

[regatta333]

I received two $100 AmEx gift cards in January for attending Wyndham updates. In the past several weeks, they have been declined on 4 separate occasions by retail merchants. AmEx phone support number on back of card routes to India and is worthless. They verify the amount on the card and just say it has been declined for my protection because it was a suspect merchant, or something to that effect and to try at a different merchant. These are reputable merchants that have been in business for years and I attempted to use the gift cards in person in the store.

Yesterday, we took our son and his family out to lunch and I once again attempted to use the gift cards. They could only be processed for $80 each. Something about a hold being placed on the card. Another call to customer support. They tell me there is a $92 pending transaction on each card that will clear after 7 calendar days. I said that I had receipts from the restaurant showing that only $80 was processed on each card. I went round and round with the agent and have no idea whether $8 or $20 will be restored to each card after the 7 days,

Last night, I read numerous complaints on Reddit from people having similar experiences. Many have ordered cards that were depleted before they even attempted to use them and are getting no support whatsoever from AmEx. They are being directed to the merchants to get the fradulent charges reversed. Unbelievable! So in attempt to address some serious security breaches in their gift card program, AmEx is basically declining their gift cards almost everywhere. I will never purchase or accept one of these cards in the future. At least I got 80% value out of these cards, but it has been a real pain to do it.

 

[dougp26364]

Must be a new thing but it doesn’t surprise me. We’ve been given these cards for attending presentations in the past and used them without issue. However, it’s been several months and a lot can change. Gift cards appear to be the scammers choice and if they can find a way to get the numbers and money from cards it would seem to be an easy target that’s nearly impossible to trace. Guess something like this makes taking the points or other gift choices more attractive.

 

[linsj]

I've had numerous amex gift cards, many of them from owners' updates, and never had a problem with them. And I've always had great customer service from amex, so I'm puzzled by these new problems.

 

[GetawaysRus]

I have also had major problems with AmEx gift cards. This isn't a brand new issue.

In the past, I have purchased AmEx, VISA, and MasterCard gift cards. AmEx often runs "sales" late in the year that allow you to minimize the fees when ordering their gift cards online. I have kept the cards locked in my home safe and we would then use them as gifts for friends and family over the course of the year.

It is very embarrassing when the recipient of your gift calls to tell you that the AmEx gift card you gave them doesn't work when they try to use it. After this happened, I checked the balance of the AmEx gift cards remaining in my safe. Oops - most of them had been drained.

I phoned AmEx. It took a number of weeks, but ultimately my money was refunded. AmEx sent me new gift cards, and I spent these as quickly as I could.

I have not had an issue with VISA or MasterCard gift cards.

I'm not a scammer, so I have no idea why AmEx gift cards are so much more easily hackable than VISAs and MasterCards. Needless to say, I don't purchase AmEx gift cards any longer.

I haven't had any problem with the VISA and Mastercard gift cards, but I always register these and change the PIN online. I don't think there was a way to do this with the AmEx cards.

 

[CalGalTraveler]

I believe Hilton Gift Cards are also AMEX. Same process. Worthless. Avoid.

 

[gravityrules]

With AMEX prepaid reward cards many transactions have a +20% hold added. Not sure how long before those holds are removed, I have one of these cards right now that has holds that are over a week old. The other 'gotcha' is the expiration date is short, mine is 07/24.
All features that seem designed to make it more difficult to redeem the full value of the card. Kind of 'in character' for a TS presentation gift ...

 

[rickandcindy23]

That's a great heads up on the gift cards. We have only gotten Visa ones for presentations.

It's weird that the Hilton Sea World had several Amex gift cards just laying on the ground, the code scratched off by someone in the parking lot, like someone tried to use some that weren't paid for or something. Or maybe these were people who went to the presentations, got the cards and used them right there to pay for something and tossed them. But they were all in roughly the same spot.

 

[regatta333]

Another terrible downside, which I read in the instructions that came with the card, is that after 3 months, the card value will be reduced by $3.95 per month. Simply unbelievable how worthless these cards are. I am coming up on the 3-month mark for these cards. Not for lack of trying. Simply have had a terrible time trying to successfully redeem them.

Fortunately, I did get physical cards (they tried to give me virtual ones). People are posting that the virtual ones cannot be stored in their wallets and are impossible to redeem.
They have also been unsuccessful at getting them replaced with a physical card, which is really only marginally better.

 

[dioxide45]

Using prepaid Visa, MC or Amex gift cards just doesn't work well at restaurants. When you use a credit card at a restaurant, the initial authorization will be for more than the total bill amount so when the final transaction gets posted with any gratuity they know the funds are there to cover it. So if you have a lunch bill of $92 and try to charge it on a $100 prepaid card it won't work as the bank is trying to verify $92+20% *an example*. However it worked for $80 in the instance you mentioned because the total the bank tried to verify to the card was still under the total value of the card.

These really only work well at retail merchants where you can charge the exact amount of the card to it. If there is an odd amount with cents and/or you try to charge more to it than the remaining balance, it will decline. I find the best use for these cards, and especially ones odd remaining balances is to just load them to my Amazon account balance. It will use up the balance of the card and I can then just spend it while shopping on Amazon.

 

[regatta333]

As I already mentioned, before using at the restaurant, I had attempted to use them at four different retail locations for the exact dollar value on the card and they were declined all four times. People on Reddit have reported trying to load and/or use them at Amazon, Target, Walmart, Home Depot with no success.

I suspect AmEx is trying to combat the rampant fraud on these cards by declining them just about everywhere.

Also, putting a 20% hold on the card at restaurants is fine, is they allow you to close out the transaction with a tip. Unfortunately, once the hold is in place, it takes 7 days (so they claim) for it to be released, so they preventing you from using the full value of the card. I am skeptical that I will see the full $20 restored, but even if it is, now I have to find another place that will accept it.

 

[clifffaith]

I always use gift cards at the grocery store. Very easy to use up the card value and then use a separate credit card to pay the rest of the bill.

 

[CalGalTraveler]

Note: Oops same as @clifffaith entry. Deleted.

 

[clifffaith]

Note: Oops same as @clifffaith entry. Deleted.

My experience has always been that it is very easy to use the gift card up completely, then produce another form of payment. Often I don’t even know what the balance is. I just swipe the gift card and the cash register takes the amount that’s left on it and tells me my remaining balance.

 

[dioxide45]

My experience has always been that it is very easy to use the gift card up completely, then produce another form of payment. Often I don’t even know what the balance is. I just swipe the gift card and the cash register takes the amount that’s left on it and tells me my remaining balance.

It works this way for all store branded cards, but bank issued (Visa, MC, Amex) isn't always that easy. Some issuers work better than others. I have found that Vanilla works well at Walmart. I don't need to know the balance. Other times the instructions provided with the gift card says you need to tell the merchant the exact balance to charge. I really don't like using bank issued gift cards because you need to use them quickly or often enough to avoid monthly fees. They are like this because the banks lobbied hard enough to be exempt from certain federal gift card laws that were enacted over a decade ago.

 

[gravityrules]

Are we talking about 2 different products, i.e. gift cards vs prepaid cards? My AMEX prepaid card doesn't have a PIN or scratch off like I've seen on gift cards.
"Always know balance and tell cashier" is printed on the back of the card

 

[DAman]

Using prepaid Visa, MC or Amex gift cards just doesn't work well at restaurants. When you use a credit card at a restaurant, the initial authorization will be for more than the total bill amount so when the final transaction gets posted with any gratuity they know the funds are there to cover it. So if you have a lunch bill of $92 and try to charge it on a $100 prepaid card it won't work as the bank is trying to verify $92+20% *an example*. However it worked for $80 in the instance you mentioned because the total the bank tried to verify to the card was still under the total value of the card.

These really only work well at retail merchants where you can charge the exact amount of the card to it. If there is an odd amount with cents and/or you try to charge more to it than the remaining balance, it will decline. I find the best use for these cards, and especially ones odd remaining balances is to just load them to my Amazon account balance. It will use up the balance of the card and I can then just spend it while shopping on Amazon.

I do exactly as you do. In fact last week I loaded $2.42 into my Amazon account to close out a $300 Prepaid Mastercard.

 

[gravityrules]

My $250 prepaid AMEX reward card is depleted with $23+ 'pending'. Some of those pending charges have been there for 10 days ( the 20% hold portions of anything close to a restaurant ... but who thinks tipping is a thing at McDonald's?).

I don't think these issues are a 'bug' ... more a feature designed to impair full use.

 

[RunCat]

I do one of two things with those cards: a) spend it almost immediately, in even increments, on groceries or b) buy an Apple gift card on Amazon. I then immediately apply the Apple Card to my Apple acct. We have Apple TV and Music so the credit goes to pay for those things. Bottom line, spend it quickly.

 

[dioxide45]

My $250 prepaid AMEX reward card is depleted with $23+ 'pending'. Some of those pending charges have been there for 10 days ( the 20% hold portions of anything close to a restaurant ... but who thinks tipping is a thing at McDonald's?).

I don't think these issues are a 'bug' ... more a feature designed to impair full use.

We’re these your charges?

 

[gravityrules]

We’re these your charges?

Yes the 'parent' charges were mine. At this point it's not clear if the pending holds will be released.

 

[regatta333]

Well, this is day 8 and the 20% hold is still on both my cards. When I called yet again, I was told the hold would be released April 19. When I said that the previous representative had said it would take 7 calendar days, he claimed it was 7-10 business days. Tried to blame the merchant. I asked how can that be the case when the portion of my bill that was paid by credit card had already cleared and was only in a pending status for a few days. He continued to try to place the blame on the merchant.

At this point, I don't believe anything they tell me. I do know that the cards were acquired January 16, so now they will get to deduct monthly charges since it's beyond the 3-month mark. It's not like I waited until the last minute to use them either. They have been rejected on four previous occasions in person and three times for attempted online purchases.

 

[regatta333]

Sure enough, 20% hold still not released, but a $3 charge was deducted for being 3 months past the activation date.

 

[gravityrules]

My $250 prepaid AMEX reward card is depleted with $23+ 'pending'. Some of those pending charges have been there for 10 days ( the 20% hold portions of anything close to a restaurant ... but who thinks tipping is a thing at McDonald's?).

I don't think these issues are a 'bug' ... more a feature designed to impair full use.

Update ... $8.38 still held from 2 charges and it's been almost a month since those charges posted. This is also after a call to AMEX and a promise that all holds would be cleared by now.

 

[regatta333]

My hold cleared after 15 days. My husband tried to use the card for an Amazon purchase and was unsuccessful. I then tried to use it in person at Home Goods and it was declined. When I came home, I checked online and another hold had been put on both cards. Another call to the support line. Apparently, the card was frozen for my own protection because of "suspect" use. I have filed a complaint with the Consumer Finance Protection Bureau.

 

[SusanRN]

Excuse my naivete, but how/why are you all getting so many gift cards? As a reward at a TS presentation I understand, but otherwise?