NEW YORK—Users of a new prepaid card can now get rewards when they swipe their plastic.
The American Express Serve Cash Back Card is the first to offer rewards to prepaid users.
As CUToday.info previously reported, prepaid card usage is taking off, with issuers not only seeing prepaid as a means to serve the underbanked, but also to help well-to-do Americans budget what they spend and limit potential fraud loss.
“Prepaid cards are surging as an alternative payment method,” said Bill Hardekopf, CEO at LowCards.com, Birmingham, Ala.
Serve Cash Back cardholders can earn 1% cash back on all purchases.
“The card is a great alternative for consumers who are unhappily banked — people who have access to bank accounts but are disenchanted by fees,” Stefan Happ, chief commercial officer of enterprise growth at American Express, told Nerd Wallet. “There’s a significant bonus available if you concentrate your spending on this card.”
American Express also offers the basic Serve and the Serve FREE Reloads prepaid cards. Serve Cash Back comes with a $5.95 monthly fee and can charge up to $3.95 per reload based on the retailer.