American Express recently confirmed selling off their whole prepaid card department to InComm Holdings Inc. and is expected to be complete by the beginning of 2017. Seems like Amex’s appeal towards “Down-Market customers” have took is fair share of losses, however, this may possibly explain why we haven’t gotten any shutdowns to put on record in a while.
Incomm Holdings Inc, backed by Warburg Pincus Firm will become the exclusive program manager and processor for AmEx’s prepaid products. This would include gift cards, business-to-business rewards, tax disbursements, AND reloadable cards. This sounds more like a partnership, so AMEX network will still be utilized. The more quintessential assessment that arises from this is whether banned Bluebird/Serve/REDbird holders will remain banned.
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American Express Prepaid Serve Credit Cards Sale Summary:
- Amex selling prepaid card department to InComm Holdings Inc., backed by Warburg Pincus Firm
- Incomm Holdings Inc will become the exclusive program manager and processor for AmEx’s prepaid products.
- Just last year, AMEX dismantled their enterprise growth division with moves swaying towards selling the Gift Card department as well.
| Card | American Express Bluebird | American Express Serve® |
|---|---|---|
| Monthly fee | $0 | $1 ($0 in NY, TX, VT) or waived with $500 monthly direct deposit |
| Unique fund reloads | Mail in checks | None |
| ATM access | $0 at all MoneyPass ATMs, $2 at all other ATMs (surcharges may apply) | $0 at all MoneyPass ATMs, $2 at all other ATMs (surcharges may apply) |
| Unique ways to spend | Ability to write checks | None |
Final Analysis:
When 2018 hits, you should expect InComm Holdings Inc. to manage and own Amex’s prepaid program, which also includes gift cards, business-to-business rewards, and tax disbursements. This is all a year after AMEX decided to dismantle their enterprise growth division which had plans appealing towards more affluent customers, however, the department didn’t gain the momentum necessary to stay afloat. The big question right now is whether or not banned BlueBird or Serve holders are still banned after Incomm Inc. takes over. My assumptions sway towards the latter considering, but we’ll just have to wait and see! Don’t forget to also check out our full list of Credit Card Bonuses for all of your credit card needs.
