American Express Unveils Prepaid Card

American Express (NYSE:AXP) announced today a reloadable prepaid card with no activation or maintenance fees.

Unlike other prepaid reloadable cards, there are no fees for purchasing the card online, monthly maintenance, activation, balance inquiries, alerts, card replacement, foreign currency conversion or loading via a bank account.

The cards have no expiration, and the funds can be replaced if it is lost or stolen. The first ATM cash withdrawal is free, after which a $2.00 fee is applied to each subsequent withdrawal.

Dan Schulman, group president of American Express' Enterprise Growth Group said, "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. We believe giving consumers freedom from fees with a best in class option from American Express will set a new standard for the $36 billion open loop U.S. prepaid industry."

He added, "We listened to our Cardmembers and customers who told us that although they enjoyed the benefits of a prepaid card--safer than cash, no impact to their credit, no risk of overdraft--they felt having monthly and other maintenance fees undermined the value of the prepaid card. So the feedback from our Cardmembers really helped make a good product, great. We stripped away the nuisance fees and designed an everyday payment card with superb customer service and benefits."

Shares of American Express are trading down 0.06% at $48.21.

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[WonderWomanFan4life]

yeah downfall is that BIG ASS prepaid on there some people do not like taking that. but to use online should be ok. or for Bills. BULLSHIT they are doing it because Greeendot, netspend, and other companies like that are killing them. regular bank fees suck so much that they gov changing rules

[WonderWomanFan4life]

duhhh every company does that when they want to get you hooked.