American Express made quite a splash last week with the announcement of its new reloadable prepaid debit card. The card is being billed as a great alternative for those fed up with their current debit or credit cards.
In many respects, the hype is well-deserved. The card sets itself apart from the rest of the reloadable prepaid debit market by charging only one fee, $2 for ATM access (the first transaction each month is free). Meanwhile, competitors’ cards tend to come with a laundry list of fees, including those for monthly or annual maintenance, reloading, usage, replacement cards, and even calling customer service. Even the Walmart MoneyCard, which is considered one of the most consumer-friendly options, charges a $3 monthly fee and $2 for ATM access.
However, there seems to be a gaping hole in the Amex card’s terms.