In what seems to be a further attempt to reach out to underbanked Americans, American Express is very excited about the launch of the new Prepaid Card, which has no monthly, recurring or maintenance fees.
The underbanked population is a $200 billion market with room to grow especially because maintaining a standard checking account at a bank can become very expensive with all the applicable fees. A recent study revealed that traditional checking accounts can have minimum yearly fees over $140 more than those of prepaid cards.
The new American Express® Prepaid Card plans on wiping out even more of these unnecessary fees to save consumers money and serve new customer segments that do not utilize traditional bank cards or credit cards to manage their daily finances.
“We created a simple, transparent and easy-to-use everyday payment card to address a real pain point that consumers have with existing prepaid products in the market that are laden with fees and confusing terms including monthly and maintenance fees,” said Dan Schulman, group president of American Express’ Enterprise Growth Group.
American Express® Prepaid Card Details
Some of the fees that the Prepaid Card eliminated are fees for purchasing the card online, monthly maintenance, activation, balance inquiries, alerts, card replacement, overseas usage and loading via bank account. The funds never expire and can be replaced if the card is lost or stolen. The first ATM cash withdrawal each month is free, but after that a $2.00 fee will apply; the only fee attached to the card.
Upon ordering the card you do not have to load it with any funds, so you can order whenever you want and fill it whenever you can.
Finally, since the Prepaid Card is so cheap, you can order up to three and give them out to family members, colleagues, babysitters, contractors or anyone else your cash must be accessible to, so in that sense it works even better than a credit card. The American Express® Prepaid Card can be used anywhere that accepts American Express Cards, including online.
Online management tools will allow cardmembers to track all activity on the card with the ability to:
- View real-time transaction history to monitor spending.
- Receive email or SMS if there are low funds or a transaction has occurred.
- Inquire about card balance anytime.
- Schedule reloading of funds automatically.
There are many good reasons to investigate if the American Express® Prepaid Card is right for you. Low fees coupled with the ability to possess and manage multiple cards can create an affordable and convenient way to spend some of your budget. You can load onto the card any denomination from $25 to $2,500 which is also the maximum allowable amount on the card at any one time. To order the card click here.