News

Amex tweaks its prepaid cards

March 22, 2012

American Express is introducing enhancements to most of its prepaid debit cards, said a news story at mainstreet.com. New features include direct deposit, higher ATM withdrawal amounts and more cash loading options.

Customers may now load their monthly paycheck onto their prepaid card via direct deposit, up to a maximum of $5,000. They may also withdraw up to $400 per day from an ATM, twice the amount previously allowed.

Amex also is adding a new reloading partner. InComm charges $3.95 to reload the card via cash at participating locations, a rate that bests Green Dot's Money Pak rate by $1. Both services will now be available to Amex prepaid customers.

The company also is introducing a program that may allow prepaid debit cardholders to upgrade to a traditional charge card if they demonstrate good payment habits. Amex will be able to use prepaid cardholders’ spending record to approve them for a charge card in lieu of an actual credit report. Cardholders can then begin to use their traditional Amex card to develop a credit history.

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