American Express announced on Nov. 2 that it has launched a prepaid campus ID card with the University of North Florida. Student ID cards now will include an American Express prepaid card that students can use to purchase meals on campus and for off-campus purchases wherever American Express is accepted.
Unlike other prepaid student ID cards, there are no fees for monthly maintenance, activation, balance inquiries, alerts, or foreign currency conversion. The funds on the Card do not expire, and if lost or stolen, the funds can be replaced. The first monthly ATM cash withdrawal is free, after which a $2.00 fee applies (bank network charges may also apply). The Card is free, however Card replacement fees apply from the University after the initial card is issued.
By teaming up with CardSmith, a campus card service provider, American Express is tapping into a coveted market – college students. Students represent a nearly captive audience as well as an opportunity to build long-term brand loyalty. The move is another example of how American Express is thinking beyond the traditional target markets of people without bank accounts as a source of prepaid customers.
