American Express has launched a prepaid reloadable card PASS as an alternative to cash, credit and debit cards to teens and young adults.
PASS, which will be sold and marketed exclusively to adults, is currently available as a preview to American Express Cardmembers and will be available to the general public this summer.
According to American Express, a parent will have to purchase and register PASS online. Funds can be loaded through an American Express Credit or Charge card. Loading through a savings or checking account will be available when PASS launches to the general public. PASS can be used anywhere that accepts American Express Cards.
Online management tools provide controls and full transparency into how the card is being used. Parents can view real-time transaction history and monitor spending; receive email alerts about low funds or notifications when a transaction has occurred; disable/enable ATM access; load funds for teen’s immediate access, with loading up to $2,500; and schedule reloading of funds automatically.
Alpesh Chokshi, president of global prepaid business at American Express, said: “With PASS, teens don’t have to carry large amounts of cash and there’s no risk of overspending. While this might be driver’s ed for the teen’s wallet, parents are in the driver’s seat with PASS.
“Online tools help manage an allowance, track spending and receive alerts when balances are low. As a result, parents have a better way to provide spending money and teens can be on a safer path toward financial independence.”