• 24% of Canadian gift card recipients purchased an item that they had not intended to spend money on and 10% bought a more expensive version of something they were already planning to buy.¹


• Average open loop² card value is 33% or $18 greater than the average closed loop card value.¹


• 62% of Canadian gift card recipients spend more than the original value of their open loop gift
  card – on average $35¹

gift card

The American Express^® Gift Card is a prepaid card purchased by businesses or consumers to give as a gift. This product has broad appeal, as 75% of Canadian purchasers prefer gift cards to gifts because the receiver can buy whatever they want. ¹ You will most likely see this Card right after gift-giving seasons. The American Express Gift Card is a prepaid card that is used for purchases from merchants that accept American Express Cards.
Learn how to process Gift Card transactions.

product design

Although there are various cards and designs, all American Express Prepaid Cards have an American Express logo on the front of the card. All Prepaid Cards have the word “prepaid” or some similar designation on the front of the card. Some American Express Prepaid Cards are unembossed, meaning that the number on the front of the card is not raised. If you are still in doubt, simply call the customer service number located on the back of the card.

gift card exclusions

The Gift Card cannot be used for recurring payments, such as utilities and subscriptions, at casinos, for cash or cash equivalents or for transactions requiring a preauthorization for less than the full value of the transaction such as car rental and cruise lines, or for any other transactions, Merchants and/or Merchant industries that we may determine at our discretion.

American Express Gift Cards are processed the same as any other American Express Cards. Here are some of the differences:

verify card balance to avoid a decline:

Be sure to confirm the Gift Card’s available balance with the customer before authorizing the transaction. Only authorize for the available balance, and should that not be sufficient to cover the entire amount of the purchase, perform a split transaction requesting payment of the remaining amount using another payment method.

If the card holder does not know the balance on their Gift Card, they can call the customer service number on the reverse of the card to obtain the available balance.

You do not need new Point of Sale hardware or software to process an American Express Gift Card. You simply follow standard card acceptance procedures and swiping the Gift Card through your Point of Sale terminal to receive an authorization, just as you would with any other American Express Card. If you are not able to process a Gift Card transaction electronically, Prepaid Cards can be processed manually by following standard Card acceptance procedures, just as you would with any other American Express Card.

for purchases greater than the available balance:

If the Prepaid Card does not have sufficient funds to cover the purchase, it may be declined. Depending on your establishments’ policy, you may be able to complete the transaction with the Prepaid Card and another method of payment.

online, phone, and mail transactions

• Prepaid Cards do not require a card holder to give their address, so for those online transactions that request address for verification, you will receive a “U” (unknown) response. Complete the transaction by following your existing policies for handling online purchases upon receiving a “U” response.


• Prepaid Card acceptance is not recommended for transactions in which processing of the purchase is delayed (e.g., delayed shipments). These transactions could be declined by American Express since a customer could spend the remaining available funds on the Prepaid Card between the time of the initial order request and the time of actual processing of the payment.

returns

• If a customer returns an item purchased on a Prepaid Card, simply credit that amount back to the card as you would with returns purchased on a traditional card.


• Because refunds or credits may take three to seven days to process, the amount refunded will be inaccessible during this period.


• If the customer wishes to return an item, but does not have the Prepaid Card they used, you may issue a store credit or refund them in cash, company check, or credit a different credit card depending on your store policy.

chargebacks

• Disputes and chargebacks will be handled under the same terms of your merchant card acceptance agreement.

Read the answers to what other merchants have asked about other forms of American Express payment at Prepaid Products FAQs.

If you have problems or need help processing Prepaid Card transactions, please contact American Express Customer Service at the number on the back of the Prepaid Card.