New American Express Serve: the Best Prepaid Debit Card Around?

amex serve

by on October 8, 2013

This post may contain references to products from our partners. We may receive compensation when you click on links to those products. For an explanation of how we make money, please visit this page.

American Express announced new changes to its Serve prepaid card that make it one of the best options out there, period. We’ll break down the changes to the Amex Serve, compare it to other options and explain why the Serve might just be the best option for the underbanked.

What’s new with the Serve?

The new Amex Serve prepaid card cut its fees drastically. Most noticeably, they’ve removed many of the so-called hidden costs of prepaid cards: those not charged by the issuer, and therefore aren’t listed on fee schedules, but still substantially drive up the cost for consumers. The primary hidden fees are ATM surcharges and third-party cash load fees. Amex has nixed those charges by allowing surcharge-free withdrawals from the MoneyPass ATM network and free cash loads in CVS and 7-11 locations. This is key for the underbanked, who often struggle to find no-cost ways to load and access their cash.

Here’s the updated fee schedule for the Amex Serve:

  • $0 to purchase online or at select retailers through 2013, $2.95 after December 31st, 2013
  • $1 monthly fee, except in NY, TX and VT; waived if you direct deposit or load $500 in the previous month
  • $2 out-of-network ATM withdrawal fee
  • 2.7% foreign transaction fee

It will also boast a few new features:

  • Direct deposit
  • Mobile check deposit (available later this year)
  • FDIC insurance
  • A linked savings account, called Reserve (get it? Reserve? I thought it was cute) which allows you to set up one-time or recurring transfers from your Serve account and encourages saving
  • No-fee withdrawals from MoneyPass ATMs
  • No-fee cash loads at CVS and 7-11 locations, using the Vanilla Reload Network
  • Online or mobile bill payments

The new fee structure makes the Amex card much more consumer-friendly. I myself have the Bluebird (I mostly use it for mobile check deposits, because my credit union isn’t very tech-savvy), which comes with a $2 ATM withdrawal fee if you don’t use direct deposit. If I considered the Bluebird worthwhile, I’d say the Serve is even better.

The Serve isn’t perfect, and the primary reason is in its name. American Express isn’t as widely accepted as Visa or MasterCard, so someone who relies on it for their one and only source of plastic may find themselves turned down every so often. Other than that, though, it’s a great option for prepaid.

The Serve compared

The fee schedule listed above doesn’t quite capture how the Serve compares to the rest of the market. Here’s a breakdown most-incurred fees, comparing the Serve to the average of the 58 cards in our database:

Fee Amex Serve Cards with Monthly Fee Cards with No Monthly Fee
Card purchase $0 online
$0 in stores through 2013
$2.95 after December 31st
$3.60 $3.02
Monthly fee $1, waived with direct deposit or $500 monthly load $6.16 $0
Cash reload (third-party fee) $0 $3.62 $3.35
ATM withdrawal* $0 $2.83 $2.88
ATM balance inquiry* $0 $1.84 $1.65
PIN purchase $0 $0.14 $0.50
Signature purchase $0 $0 $0.39
Foreign transaction fee 2.70% 2.26% 1.70%

*If the card does not have a surcharge-free ATM network, we added an estimated $2 surcharge to the cost of the withdrawal. This estimate better reflects how much it costs to the consumer, rather than reflecting how much the issuer charges.

I’m actually really impressed with American Express for taking aim at the shrouded third-party fees. Most of the time, when prepaid debit issuers complain that our fee estimates for their cards are wrong, they say that they don’t charge cash load or ATM surcharge fees. My argument to them is that it doesn’t matter who charges the fee – the consumer only cares about the cost to them. I’ll give them credit for addressing a fee that most consumers don’t see until after they purchase the card.

Based on our usage estimates, the Amex Serve is the cheapest prepaid card out there, even beating out the relatively affordable, $3-a-month US Bank Convenient Cash.

We have many complaints about the prepaid debit industry, but they typically boil down to this: They’re usually high-cost, and they often don’t encourage people to save in the same way a savings-checking account combo can. But the Amex Serve addresses both of those concerns, offering a linked savings account as well as a relatively affordable product.

Don't get burned by prepaid debit fees!
Use our prepaid card finder to save money and find better deals.
We want to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and safe by following our posting guidelines, and avoid disclosing personal or sensitive information such as bank account or phone numbers. Any comments posted under NerdWallet's official account are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise.
  • BridgetTweeter

    Love the card BUT tried paying my bills on line with it and NO one is accepting it as a debit card and refuse to run it as a credit card. Will only use it as a card to pay for drinks.

  • Rodolfo Cortes

    bad service a nightmare, hold me money so I can not use and do not return it to me, do not solve anything by phone or the web, it’s like dealing with a ghost, Total desepcion, so far I have lost my money that I put in this prepaid card, not recommended at all.

  • miguel

    IM Trying to close my account and i received this message:

    Before Closing Your Account
    You must complete these steps before closing your Account. All scheduled and recurring sends will be cancelled upon closing.

    nothing after this. what steps?

  • Erin_818

    Excellent card. No other card in the world lets you deposit up to $100,000.00 into 1 single account but this card does. And just carrying any AMEX card (even a prepaid one) is a privilege because of AMEX’s history as being one of the best if not the best financial institutions around. Sort of like BMW’s slogan of their autos being “the ultimate driving machine”….AMEX…”the ultimate card issuer”. And AMEX won’t loose any sleep over you closing your account because they have more business that they can handle and you WILL NOT affect their market share :) Point being, stop whining!!!

  • Nancy Kwak

    Where can I find Money Pass ATMs?

  • William

    Anyone know if you can set up recurring transfers from the main account to sub-account? Bluebird does *not* let you do this. Customer service says yes, but I’m not sure I believe them. Thanks!

  • Julian Brennan

    Wow where is all this hatred in the comments coming from? I’ve been using this card for a time now and haven’t seen any of the problems described here! I use it to load with a credit card, get rid of surplus cash at different 7-Eleven and CVS locations and pay bills with it. I must admit that I don’t use it for direct deposits or purchases (this one is in my portfolio to MAKE me money not to spend it) but other than that it’s a great product. Customer service is very helpful, the online system is very easy to understand and to use. Show me another prepaid product with such low (read: non existent) fees and great features and we’ll talk again!

    • Sue

      How do you expect to make money from a pre-paid card?

  • alaska V V

    I almost busted a vessel from buying and loading this card today. Worst experience ever… #AmericanExpressServeCard is absolutely horrible. No wonder #walgreens had to mark them down. All i know is i thought it was going to be a great purchase but as the day closed to the end It became a nightmare. And now all i want is my money back and i had to beg for the promise of my money to come in the mail. It was an all around shady sketchy experience.

  • Sue

    Horrible card and even worse customer service! I have my paycheck directly deposited to this card but can not access cash of more than $600-$800 at a time. That all depends on the ATM I find. Which is another headache. The ATM’s in their network are few and far between. I once drove 3 miles to get to the closest one to my home…it was broken. I drove another 2 miles to the next closest one but it would only allow me to take $200 at a time. I did that 3 times then maxed out the amount allowed from that location. Another ATM location didn’t exist at all! Wasted time driving there.

    Once I needed to get a money order for $1,200 but Walmart (Serve’s business partner) would not allow me to use the card as a debit. I can’t get that much cash out of the ATM system in one day so I was screwed.

    I’ve tried bill pay. That doesn’t work either. The bill pay tells me I don’t have the correct account number and/or zip code. Uh….yes, I do.

    Since these headaches make it difficult to access my money I thought I would try Bluebird. Well…you can’t have a Bluebird account AND Serve. WTF? Why not. One is simply a prepaid card where the other is online banking.

    I’m with Bridget Tweeter – use for drinks only!