It is very interesting that AmEx is pushing into prepaid cards. They have their own reasons, but the card is actually very good, especially for consumers with no access to credit cards and bank accounts. http://blog.unibulmerchantservices.com/amexs-new-prepaid-card-shows-how-issuers-will-fight-debit-fee-limit.
Greg Servof CA10:38AM July 03, 2011
This is a decent article, but it assumes that prepaid cards are only for credit card rejects. I'm an AMEX credit card holder and I elected to use the prepaid card to budget my spending. Like other comments I only use my credit card for emergencies and when traveling; such as rental cars and hotels who charge you excessive fees and deposits when you attempt to use a debit card. The prepaid card has definitely kept a leash on my spending.
Antof NY4:57AM July 02, 2011
AMEX will not resonnate with the un/underbanked customers, which is why the fee structure doens't compete for their business. The prepaid debit card is a tool that allows AMEX cardholding parents to manage the amount of money they provide their high school and college age (and perhaps beyond) kids. They can't spend what they don't have and parents get a record of how it's being spent. It's that tracking that makes AMEX appeal to those of us who pay a fee to have their cards. What is smart about AMEX's move is that it creates a relationship with its target market even earlier than before. These kids get to have access to AMEX before they are credit worthy. Membership does indeed, have it's priviledges.
Margoof TX10:00AM June 30, 2011
From having my own AmEx credit card and knowing how well their fraud department works, I think this prepaid card could be very helpful to consumers on the back-end both with fraud prevention and customer service. Another point is the AmEx prepaid card will increase the number of prepaid debit cards to choose from. prepaiddebitcards.net
Davidof CA1:20PM June 29, 2011
This is a pretty good article but I do think there is a market for this card. Granted, they should have direct deposit, however not all people that prefer using prepaid cards are the same. I have checking and savings accounts as well as actual credit cards. However, I don't like debit or ATM cards and I don't like charging on my credit cards, which I only use for true emergencies. I also do quite a bit of online purchasing, and dont' want my actual credit card information all over the internet. There are no fees since I load the card through my checking account and since I predetermine the amount, I don't have to worry about overspending. It's a smaller market but this works for me.
Tina C.of VA11:17AM June 29, 2011
With Playstation Network (PSN) and countless other websites being hacked having a debit card not linked to your bank account is a really good idea. I got the AMEX prepaid card and as soon as it comes in, I'll use that for my online purchases.
nightsparkof TX8:11PM June 28, 2011
I typed so fast that I made a couple of spelling errors in the previous post!
Alex Bartheof NY10:37AM June 28, 2011
AMEX is late to the prepaid market and moreover, they are no recognized by the demographics likely to use a prepaid card. Prepaid cards are excellent for people with no bank accounts, bad credit, or simply those that fear the banks. AMEX only offers credit cards to qualified applicants and that's the market they need to stick with. While it's prestigious to carry something with the AMEX label on it, a prepaid customer who's already doing whatever they need to do in order to get by, is not going to care about prestige. They want to save money and focus on being frugal.
AMEX needs to stick to their demographic. I see this card going away in a year just like the prepaid Travel card. Though the prepaid card for teenagers is a good idea because most likely it's funded by their parents AMEX cards. Focus on your ideals clients please.
Alex Bartheof NY10:34AM June 28, 2011
It is very interesting that AmEx is pushing into prepaid cards. They have their own reasons, but the card is actually very good, especially for consumers with no access to credit cards and bank accounts. http://blog.unibulmerchantservices.com/amexs-new-prepaid-card-shows-how-issuers-will-fight-debit-fee-limit.
Reader Comments
Back to blog
Greg Serv of CA 10:38AM July 03, 2011
Ant of NY 4:57AM July 02, 2011
Margo of TX 10:00AM June 30, 2011
David of CA 1:20PM June 29, 2011
Tina C. of VA 11:17AM June 29, 2011
nightspark of TX 8:11PM June 28, 2011
Alex Barthe of NY 10:37AM June 28, 2011
Alex Barthe of NY 10:34AM June 28, 2011
Greg of MA 6:31PM June 27, 2011