Do you want your allowance in paper or plastic?
American Express just released the Pass Card, a prepaid reloadable debit card for teens that aims to simplify how you and your parents manage money…without the need for your own checking account or credit card.
For Teens
Parents fund the card by check or electronic transfer and cardmembers can spend the money loaded on the card. Because Pass is prepaid, you can’t spend more than you have. That saves you from throwing away money on interest or overdraft fees like you could with credit or other debit cards.
Plus, the Pass Card is a stylish way to pay anywhere American Express is accepted: you can choose from four colors and customize your card with an image of your choice. (It’s also earth-friendly; the Pass card is made from recycled plastic).
For Parents
Of course, Amex is hoping that the Pass Card will make parents happy, too. According to an American Express survey, 55% of parents give their teens an allowance…an average of $66 a month.
With the Pass Card, both cardmembers and parents can track spending online, in real-time, 24/7. Parents can activate and deactivate ATM withdrawals as needed. If lost, a Pass card is fully replaceable. And, the Pass Card comes with 90-day purchase protection and roadside assistance. That’s nice peace-of-mind for cardmembers and parents alike.
But Is It Worth It?
Reloadable debit cards aren’t new, but they’re gaining traction as the world moves away from cash. The American Express Pass Card and similar products work like regular debit cards (but without the bank account): you can deposit funds, make purchases, or withdraw cash at an ATM.
The biggest downside to reloadable debit cards is, usually, fees. Some charge a buck here or there for nearly everything. The American Express Pass card is better, but still pricey. The Pass Card costs $3.95 per month (although this fee is waived until October 1, 2010). Pass also charges $1.50 per ATM withdrawal.
Compare that to a free checking account that comes with a debit card, and the Pass Card doesn’t seem like a deal. But, if you have overdraft protection on that checking account and overdraw your account just once, your bank could slap you with a $35 fee. Suddenly the Pass card doesn’t look so bad.
Whether you choose the American Express Pass card, a bank account, or even a credit card, what’s important is that you don’t just spend money, you manage it. That means deciding ahead of time what you want from your money and making a plan to spend and/or save it.
What do you think? Do you/did you get an allowance? Would a prepaid, reloadable card be/have been useful?
I'm David Weliver. At 26, I had NO savings and NO financial plan. I was maxed out, stressed out, and fed up. Then, I changed. I repaid $80k of debt, tripled my income, and bought a home. I'll show you how to get similar results. 
I hated it I canceled it the first week I got it the salesmen would look at the card like wtf is this and u can’t swipe it at gas stations it will decline It!! This card sucks.
if you pay inside it will work
$3.95/month to spend my own money?!?! What a deal!!!
They should be happy with getting the fees from the merchant since this is secured with the cash upfront. What a rip-off.
No wonder America is so screwed up economically. We’re not teaching kids how to handle money.
Avoid the American Express PASS card. This is the biggest hassle including all the unnecessary security questions and long application process. AMEX sent the card in my name and it was supposed to be in my daughter’s name. Customer service accused me of “losing” the card when in fact AMEX sent it incorrecly. The $25 bonus came late after a phone call to PASS customer service with escalation to the supervisor level (she hung up on me). The bonus was supposed to arrive in “4 – 6 weeks,” we got it in 8. Just as soon as the money I loaded is spent we will definitely CANCEL this card and certainly will not pay the monthly charge for the privilege of keeping it.
thank you
I love capitalism and all the choices but this choice and decision = NO!!
Does PASS work on Ticketmaster.com to buy AMEX presale tickets? Anyone try it or know someone who tried it online for presale tickets spnsored through AMEX?
The PASS card from AMEX is an absolute joke! We got a card for our 16 year old daughter for all the same reasons you mentioned above and their claims that in the event that the card is lost, stolen or has fraud activity, they would restore the card immediately. My daughter used it at a local merchant on Saturday and the clerk was confused by message from AMEX. They called AMEX and AMEX told them their was an 8 day hold on account. Merchant sent my daughter home without purchase only to learn that card had been charged. The call center in India and the Executive office said there is nothing they can do to reverse an “authorization” and we simply need to wait 8 days for the transaction to reverse. ARE YOU KIDDING ME!? I have been an AMEX card holder for years and I am canceling all of my accounts with them because of their bogus product. Don’t use this card! It does not do what it claims to do. Cash is better!
I got a PASS for my sons trip to Italy. I called before he left to make sure there would be no problem using it, and no limits. I was told he could spend all the money on his card with no restrictions. He called me from Europe to tell me he couldn’t get money from an ATM. When I called to check, they said there was a 200 ATM limit. So I trusted AMEX, and my son was stranded in a foreign country with no access to his cash. I am horrified. I will cancel all ties with AMEX as soon as my son is saefly home,
PARENTS, DO NOT TRUST AMEX