The prepaid card industry is notorious for preying on poorer consumers with hidden fees for just about every thing you use it for. There's even fees for not using them, in the form of inactivity fees. So it's an unexpected breath of fresh air that American Express is rolling out a new prepaid card with very few fees and a pretty straightforward approach, at least for consumers.
Prepaid cards are a way to load cash onto a card without it being connected to a bank account. They are often used by people who are unable or unwilling to open a bank account, the so-called "unbanked." Prepaid cards used both so that they don't have to carry and stash their cash and because so many transactions these days require a card with a magnetic strip.
Of course, AMEX charges higher swipe fees than other cards, so part of the tradeoff for consumers is that it might not be accepted every where.
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