Credit-Land Card Review: American Express Adds... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Credit-Land Card Review: American Express Adds Prepaid Debit Cards

Credit-Land Card Review: American Express Adds Prepaid Debit Cards

Credit-Land Card Review: American Express Adds Prepaid Debit Cards
The content is accurate at the time of publication and is subject to change.

Once again, the credit card giant American Express has found a niche that sets itself apart from the competition. In response to the debit card swipe fee restrictions that are set to go into effect in July, American Express has introduced prepaid debit cards. Credit experts are not saying, and neither is American Express, whether this is a way for the giant to move slightly out of the credit card market, or if it is simply a strategic approach to cornering the debit card users that may stray from their banks, when banks start charging consumers more for banking products.

The AMEX Difference

Not only is AmEx offering a prepaid debit card option, but the credit card giant is also offering the new card with a variety of benefits that sets it apart from the crowd:

  • Is not charging transaction fees for online purchases
  • Does not charge a monthly maintenance fee
  • Isn’t charging fees for balance inquiries
  • Waives fees for activation and reloading the card from a bank account
  • Doesn’t charge for replacing lost or stolen cards

Target Audience

While AmEx is a giant itself, the primary customers for the new prepaid debit card may well be some of the customers of the other major banks in the country. JPMorgan Chase & Co., Wells Fargo and even Bank of America customers are already seeing an increase in fees for certain items in checking and savings accounts, and Chase and Wells Fargo have already announced plans to cut back on rewards for their debit card programs.

Because the big banks are being forced to make changes to fee structures and reward programs to make up for the loss in revenue on debit card swipe fees, it could very well push loyal debit card users to jump ship to a lower cost alternative.

According to Dan Schulman, who is the group president for enterprise growth at AmEx, “More and more people will probably move toward prepaid cards as a substitute. Prepaid-card use expanded 35% percent last year with more than one billion transactions “and we think it will grow even more quickly as a result of the recent legislation.”

“The whole industry is looking at prepaid offerings as a way to generate growth,” said Brian Foran, an analyst with Nomura Securities International Inc. in an interview with Bloomberg.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

A New Priority Pass Restaurant and Lounge in Washington D.C.

Posted: July 16, 2018

Hitting the lounge for some rest and relaxation when flying can be a great perk. And now people with Priority Pass membership - or a credit card giving them Priority Pass lounge access - have two new options to check out when passing ... Continue reading
New LL. Bean Credit Card

Posted: July 13, 2018

L.L. Bean's credit card portfolio was purchased by Citi Retail Services, and they have now partnered with MasterCard to launch a new credit card, offering 4% on purchases made at L.L. Bean. But that is not all; With the L.L. Bean ... Continue reading
5,000 Bonus Points From Hilton and Amex Offers

Posted: July 12, 2018

Are you planning a trip and thinking about staying at a Hilton Hotel? If so you might want to check out this new deal at Amex Offers, providing cardholders with 5,000 Membership Rewards points when they book a stay of $250 or more at ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 15.74% - 25.74% based on your creditworthiness*
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!