Target Stores Inc. and American Express Co. are teaming up to offer a prepaid debit card called American Express for Target that is designed for the retailer’s lower-income shoppers who do not have bank accounts.
The American Express for Target can be used anywhere that accepts American Express cards, not just at Target. The card is $3, but an on-pack coupon good for $3 off makes the card and first load free. On-line loads are also free.
Target is merchandising the card alongside gift cards and end-caps at the cash register in stores across the USA, except Arkansas and Vermont.
The American Express for Target, is similar to a checking account, but without minimum balance requirements or monthly, annual or overdraft fees. It will accept payroll direct deposit, smartphone deposits, and will make mobile payments and person-to-person transfers.