(EDIT: A reader report in March 2015 suggests that gift card purchases are no longer earning points. This was only one incident but be aware!)
I have written before about the range of American Express gift cards. They were not, to be honest, fantastic value.
However, they are now looking VERY INTERESTING if you have a spending target to hit on a new credit card. And if you don’t have a card with a spend target to hit, this might be a good time to apply for one!
American Express is currently offering gift cards with NO purchase fee and NO delivery fee. You can buy up to five cards per order which means a maximum of (5 x £100 gift cards) £500 you can spend at a time.
You need to use promotional code VAL1 to get the purchase fee and postage deducted.
The offer runs until 31st March. You can find full details on the cardmemberoffers.co.uk website here.
Without the fees, you are effectively buying Amex gift cards for face value. The standard fee plus postage on a £100 gift card is £3.95 so this is a substantial saving.
Amex accepts Amex plus Visa and MasterCard for the purchase of these cards. The payment almost certainly goes through as a ‘purchase’ rather than a cash advance, because Amex would need to disclose it otherwise.
The most obvious use of this promotion is to bring forward spending in order to hit a time-limited sign-up bonus on a new credit card. If you recently took out a new card to boost your Avios collection before the devaluation on April 28th, this is a good way of getting the points in your account faster.
The cards can be used for normal spending at almost everywhere in the UK that accepts Amex cards. If you end up with a small residual balance of a few pounds, the easy way to cash it out is to buy an Amazon gift certificate (via the Head for Points affiliate link if you like!) and add it to your Amazon account as a credit against future purchases. Amex will also refund the balance of a gift card by cheque or bank transfer if you make a formal request.
Note that Amex gift cards can only be used in the UK. They can be used for physical and online transactions but you cannot use them to obtain cash from an ATM. You need to use up the balance on the card within 12 months otherwise a £1.50 monthly fee will kick in.
(Want to earn more miles and points from credit cards? Click here to visit our ‘Credit Cards Update’ page or use the link in the menu bar at the top of the page.)