Prepaid Debit Card Reviews, Complaints, Etc

Tag: american express serve

  • Changes To American Express Serve Cards

    Changes To American Express Serve Cards

    Starting in November, American Express Serve prepaid customers will be able to add cash to their accounts at CVS and 7-Eleven with no fees.

    by Shane Tripcony

    The competition to serve the millions of Americans lacking traditional bank accounts just got a little stiffer. On October 8, American Express announced significant new changes to how its Serve prepaid card works. Starting in November, Serve customers will be able to load cash to their accounts, for free, while shopping at over 14,000 CVS and 7-Eleven stores nationwide. Additionally, American Express Serve customers will also be able to add funds via direct deposit of a paycheck without incurring a fee. By the end of 2013, customers with a smartphone camera will be able to take a picture of a paper check and add that money directly into their account by using Serve’s mobile app.

    In making these changes to how the Serve card functions, American Express declared that it was directly targeting the almost 70 million so-called “under banked” Americans. “Unfortunately, the traditional banking system is not easily accessible to large segments of the population, making managing money cumbersome and expensive for many,” says Dan Schulman, Group President of Enterprise Growth at American Express. “Today, we’ve added a number of new features to make the management and movement of money more affordable and convenient for everyone.”

    In the past, individuals who did not have bank accounts have had to rely on check cashing or payday loan services. Many of which charge exorbitant fees or prepaid debit cards layered with charges for everything from adding money to an account to checking a balance. While there are still plenty of prepaid cards that charge high fees, more and more big financial players like Chase, U.S. Bank and PNC are now offering low-fee options.

    The changes American Express has made to its Serve card are meant to address what it sees as the substantial charges that come with simply adding money to an account. Citing research from Javelin Strategy and Research, American Express says that 41 percent of under banked customers report paying between $3.00 and $3.99 to reload their prepaid cards. Depending on how often someone reloads their card, American Express estimates that utilizing Serve, which charges a $1 monthly fee, could save between $72 and $240 annually. The savings could be even greater if a Serve customer opts to use direct deposit or adds at least $500 to an account over the course of a month.

    In addition to a variety of fee-free ways to add money to Serve card accounts, American Express also allows customers to withdraw money from MoneyPass ATMs for free as well as pay bills for free using Serve.com and the Serve mobile app.

  • Changes To American Express Serve Accounts

    Changes To American Express Serve Accounts

    In the increasingly competitive world of prepaid debit cards, companies are having to scramble to stand out from the crowd. The American Express Serve card has done that thus far by offering a variety of perks – including things like roadside assistance, purchase protection and early access to sporting event and concert tickets – that one would expect from a global financial services company like Amex.

    But the desire to entice more people to sign up for the Serve prepaid debit card is no doubt behind a number of changes American Express announced in mid-August of 2013. While not as glamorous as, say, the chance to snap up good seats to a Dallas Cowboys and Washington Redskins clash, the recent tweaks made to American Express Serve accounts are more substantive and beneficial to regular cardholders.

    Indeed, in the past American Express Serve cardholders were able to replenish their accounts using direct deposit from their employer or by, among other things, accessing funds from a separate debit or credit card account. As of August 13, however, Serve accounts began accepting direct deposit for a variety of payments from the federal government as well, everything from tax deposits to Social Security checks to Worker’s Compensation.

    Another upgrade made to the Serve card involves ATM transactions. Cardholders will now be able to withdraw cash without incurring a fee from more than 22,000 ATMs in the MoneyPass network worldwide. Outside of the MoneyPass network, Serve will charge $2 per withdrawal, which is in addition to any fee levied by the ATM operator.

    Perhaps the most important of the recent changes announced by American Express has to do with Federal Deposit Insurance Corporation (FDIC) insurance. As of August 13, any time a Serve cardholder adds money to their account, American Express quickly places those funds into a so-called custodial account (with either Wells Fargo or American Express Centurion Bank) that has FDIC insurance. The upshot of this is that Serve account holders receive what’s known as FDIC pass-through insurance, meaning that their money (up to $250,000) is protected should a bank fail.

    As competition among prepaid debit card issuers heats up, expect more and more changes and improvements to the standard features companies offer.

Prepaid Debit Card Reviews, Complaints, Etc