American Express Now Offers Serve Cash Back Prepaid Card
Prepaid cards are enjoying a significant upsurge in America, and American Express is trying to capitalize on this trend.
Today, American Express expanded its line of Serve prepaid cards by introducing the Serve Cash Back card, the first prepaid debit card that comes with a 1% cash back reward on every purchase. There are no limits or restrictions on how much a cardholder can earn.
But consumers should be cautious about the new Serve Cash Back card. The card comes with a $5.95 monthly fee, except in New York, Texas and Vermont.
The original Serve prepaid card, still offered by the company and introduced in 2013, has no cash back rewards but only has a $1 monthly fee, which is waived if the cardholder makes direct deposits of at least $500 during the month.
There is no fee to purchase either the original Serve card or the new Serve Cash Back if consumers get the card online. Otherwise, either card will cost up to $3.95 to purchase at a retail location.
As with all prepaid cards, using Serve or Serve Cash Back will not help consumers build their credit score.
“We know consumers are looking to stretch their budgets and get more from every dollar they spend,” Stefan Happ, Chief Commercial Officer, Enterprise Growth, American Express, said in a statement. “With the American Express Serve Cash Back Card, we are defining a new standard in the prepaid industry and rewarding our customers where they’re already spending – on everyday items such as gas, groceries and clothing.”
According to an April 2015 survey, one in four Americans are using or have used a prepaid card during the last three years. Usage among Millennials was even higher: one in three.