For Christmas a couple of years back, my dad gave me three $25 American Express giftcards. I used just about all of one of them and half of another, but retained the third and the remaining balance to put toward an item I began saving money for. I’m in a position to buy that item now, so I went to check the balance on the two used cards to recall how much I had left.

Imagine my shock when all three came back with a zero balance.

Turns out American Express gives you 13 months to use the cards, despite the expiration date on the front claiming you have three years. After 13 months, they stea; $2 per month from your account. I say steal because it’s not their money, as the receipient of the gift I have not given them permission to take that money and I can’t exchange the cards for cash without incurring a fee. Since I had three cards, they actually took $6 from me per month and, by the end of 12 months, all three cards were at a zero balance.

So, if you want to give a cash gift to someone, give them a check. I know Amex is not the only company to do this. What gets me is that this is illegal in some states. Sadly, though, it’s not illegal in California. It amounts to legal corporate stealing in my eyes and is a major disgrace, especially when you consider they’re making more money in interest on those accounts than they are outlaying. This is in addition to the $5 or so per card my father paid to activate them. Disgraceful.

Don;t waste your money on an American Express Gift Card. They’re not accepted everywhere, they’re not the same as cash and, if you choose to save them for a rainy day, they’ll steal your money right from under your nose.