American Express officially announced today the new Serve Cash Back which is added to the recently expanded Serve lineup. The selling point of the new card is that it will earn account holders 1% cash back on purchases. Subaccounts are not eligible to earn Cash Back.
The card has a monthly fee of $5.95 (no fee in NY, TX, VT) and a reload fee of up to $3.95 when loading at Walmart and other stores.
The cash rewards can only be redeemed for future purchases and can’t be withdrawn as cash at an ATM. This makes it less flexible than the average cash-back credit card, which typically allows you to redeem your cash rewards as a statement credit, a check or a deposit in your checking account.
One interesting fact is that AmEx Serve customers have loaded $7 billion on their cards since launch and year-over-year spending tripled. So teh cards are definitely getting more popular.
Should you get the Serve Cash Back?
The Serve Cash Back is similar to the other American Express prepaid products so the first thing to think about is if you should ditch another Amex prepaid product for the Serve Cash Back. The fees make it useless in most places, but if you’re in NY, TX or VT where’s there’s no monthly fee, then it might make some sense.
It could be funded up to a $1,000 monthly, with a 3rd-party issued Amex credit cards such as the Amex Fidelity that will earn 2% on the load, making it a 3% cash back card on everyday purchases.
Read the terms here.