The card is free when ordered online, it is shipped to your address for free, and the American Express Prepaid Card has no monthly fees, and no transaction fees except for an ATM usage fee after the first free monthly ATM withdrawal. By not charging a fee for the first ATM withdrawal every month and by not charging any overdraft fees, the card remains in compliance with the provisions of the Durbin Amendment that grant prepaid cards an exemption from interchange caps. This amazingly fee-free environment includes replacement cards and foreign currency conversion:
“Unlike other prepaid reloadable cards, there are no fees for purchasing the Card online, monthly maintenance, activation, balance inquiries, alerts, Card replacement, foreign currency conversion or loading via bank account. 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).
Choosing to use the American Express Prepaid Card also means that Cardmembers will enjoy the exceptional customer service they have come to expect from American Express. American Express Company was ranked “Highest in Customer Satisfaction among Credit Card Companies,” for the fourth consecutive year, by the J.D. Power and Associates in the 2010 Credit Card Satisfaction Study(1).”
American Express has changed the market with a single product announcement. Now we will need to wait to see how existing players shift their positions to accommodate the new gorilla on the block.