American Express announced that it has begun selling virtual gift cards via its Web site on Sept. 6. The cards are designed to be bought, given, and used entirely online. The cards carry no fees after purchase and funds do not expire.
The eGift Card is available for purchase online at americanexpress.com/gift and is delivered to the recipient’s email address within minutes of ordering it. The American Express eGift Card can be redeemed online or via phone at U.S. retailers and restaurants that accept American Express Cards. The American Express eGift Card is available in denominations ranging from $25 to $200, with an upfront purchase charge of $2.95. Terms and conditions apply to Gift Cards.
The product is likely to be a profitable one for American Express because it stands to make money on the purchase fee as well as the interchange from the use of the cards. Because these cards are digital, American Express is spared the cost of producing physical cards and the costs of delivering them to recipients.
