American Express Prepaid Card Trims Fees Consumers Often Face

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If you think American Express caters only to the affluent market think again.

In an effort to serve a growing industry Amex is rolling out its first prepaid card for the general market.

It was a bit surprising to hear about this approach but it's obvious that with the success of its Pass prepaid card that launched last year Amex got a taste of this market and now wants to take a much bigger bite.

This new card is not a debit card and it's not a credit card. It's a prepaid, reloadable card that you can use as a way to control spending.

While prepaid cards like Account Now and Black Diamond have its unique benefits like credit building the American Express Prepaid Card has a few benefits up its sleeve too.

One in particular is its reduced fees and compared to other prepaid cards it is definitely a plus.

Here are the two types of fees that you get charged:

First, to fund the card at retailers like Wal-Mart and Walgreens there is a $4.95 fee but if you use a checking or savings account you pay nothing.

Secondly, if you use the ATM for withdrawals you will pay $2 per withdrawal. But keep in mind you are allowed one free withdrawal per month.

That's it so make sure you do your due diligence when you select a prepaid card because you may find yourself being charged an activation fee and even monthly fees if you're not careful.

There are also other charges you should be aware of which include:

*Maintenance charges

*Purchase fees

*Renewal fees

Since the card itself is prepaid there are no later payments to worry about plus you have much greater control over the card compared to a credit card or a charge card.

Here's how the American Express Prepaid Card works:

*Fund the Card

You can add funds to your card 24/7, online or by phone, from a bank account, MoneyPak, or an American Express card.

*Use the Card

The card can be used at any location that accepts American Express Cards either nationally or internationally. You can also use it to withdraw cash from ATMs but you can't use the card for car rental reservations.

*Reload the Card

You can reload the card as often as you want by using any of the funding options. At anytime you can also check your balance, transaction history, and set alerts via your online account that you set up.

By using a prepaid card you will find that it's a great way to control spending for yourself or the people you choose.

I would have like to have seen a credit building feature added to this card when using bill pay but overall the ease of use, trimmed out fees, and benefits makes this a card definitely worth having.

About the Author:
About the Author
Marco Carbajo is founder of the Business Credit Insiders Circle,a step by step business credit building system. To read more about credit and the American Express Prepaid Card claim Marco's FREE business credit seminar for details ($597 Value) on Twitter @MarcoCarbajo.



Article Originally Published On: http://www.articlesnatch.com


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