Well, I think I’ve seen it all now.
I receive a lot of junk e-mail, but none more so then the latest one. Times are tough on everyone, credit card companies too I suppose. Now, American Express – one of the most prestigious charge cards on the market – is moving into the prepaid credit card business.
Yes, I’m serious!
For no annual fee, a specially-designed blue American Express card is now available to anyone who asked for it. In fact, according to their web site, you don’t even have to ask for it yourself. Someone else can do it for you.
I certainly understand the appeal of prepaid credit cards for those who are not able to obtain a traditional credit card. It is often difficult to book hotel reservations, travel and rental cars without having a credit card. But, the American Express card is not nearly as widely-accepted as Mastercard or Visa.
Maybe cardholders just like being able to say they have an American Express. It is a pretty looking card – if you’re into those sorts of things. Otherwise, it’s just a tool of convenience – or inconvenience. Don’t forget: you have to load money on the card every time it runs out or your purchase will be denied.
For American Express, this probably is a smart move. They will recover more discounted transaction fees from prepaid users and they will expand their merchant network as more people begin receiving (and using) the American Express card. And, in an era of plunging credit scores, this new card will open up American Express to millions of potential cardholders that otherwise would never qualify for the card. They also have constructed an nationwide network of ATMs that will honor the card for cash withdrawals.
As a freelance writer, this kind of card actually makes a little sense to me. I could load some money on the card and use it for all my business expenses. That would keep them all in one place and make tax season a breeze. Since the card is free of annual fee – and available to anyone who applies for it – it makes sense to give it a try.
Everything about this card can be managed online at www.americanexpress/prepaid. Cardholders can check previous purchases, refill their spending limit and much more all with the convenience of online transactions.