American Express Prepaid Card – Swing and a Miss
No monthly fee, no account minimums, no usage fees or direct deposit hoops to jump through; the American Express Prepaid Card appears to have solved the problem of fee ridden prepaid cards that take advantage of consumers.
The Catch
But the problem with the American Express Prepaid Card, even though it charges nothing in fees, is that owners who want to load the card with cash must pay $4.95 each and every time. Loading the card with your checking account or AMEX credit card is free, but cash requires a Green Dot MoneyPak, which costs $4.95.
Many Americans may think:
“Well jeez Michael that’s not so bad, I’ll just load the card with my American Express credit card or checking account and avoid the fees. Still beats all of the other prepaid cards on the market today.”
In that respect, the American Express Prepaid Card is awesome. But I would question why consumers that own checking accounts and credit cards are screwing around with a prepaid card. I mean, what’s the purpose of owning an American Express prepaid card if you are already banked? Anyone that chooses to make purchases with a prepaid card rather than their rewards earning credit card or checking account should contact me immediately … I have a bridge to sell.
Kudos to Tim Chen over at NerdWallet who first reported this sneaky fee when the card was launched. Because the Green Dot MoneyPak isn’t a fee you pay on your card, American Express can claim they promote a no free prepaid card. True to a certain extent, false where it matters most. American Express does not advertise this fee but does show it on their FAQ page.
American Express Prepaid Card Value
Even though I hate the way American Express conceptualized this prepaid card, it still holds value for some.
- Parents looking to provide their teens a prepaid card would benefit from owning this particular prepaid card as it’s virtually fee free and can track their child’s spending
- Consumers with less than stellar credit that do have non-interest bearing checking accounts who can transfer money for free should use this prepaid card exclusively.
- People who own a prepaid debit card that are charged more fees than it costs to load your money when you need it. For some, $500 on a prepaid card can last months and if the only fee is $4.95, it may be worth it.
American Express has always been regarded as the most liked and trusted credit card issuer by consumers. Customer service and perks continue to exceed expectations but it’s my opinion that the American Express Prepaid Card misses the mark here. For unbanked consumers in need of a prepaid debit card … look elsewhere.
American Express Prepaid Card – Swing and a Miss is a post from: PT Money: Personal Finance by PT.
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