Consumer Payment Card News

AmEx Student Card

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American Express rolled out a new, no-fee credit card targeted to college students. The ‘American Express Credit Card for College Students’ offers access to ‘The Credit Information Service’ via an 800 phone number or Website; ‘Continental Travel Vouchers’ allow student cardholders and a friend to fly for as little as $159 round-trip up to four times a year on Continental Airlines; two hours of free long-distance calls with the ‘Connections’ calling card; payment flexibility with an interest rate of Prime +0% on single purchases over $200 for 90 days, and an APR of Prime +7.9% on other outstanding balances; plus ‘Purchase Protection’ and ‘Buyers Assurance’. Student cardholders may also enroll in the ‘Membership Rewards’ program for an additional $25 per year.

American Express announced Wednesday a new no-fee credit card specifically designed to meet the needs of college students by providing low interest rates, travel vouchers and a toll-free credit information service to help them lay the groundwork for a secure financial future. Promoted through a marketing campaign entitled “Take Risks in Life, Not In Credit Cards,” the American Express Credit Card for College Students includes the following features:

— The Credit Information Service provides quick, clear answers on financial management issues, including establishing good credit, understanding credit terms and learning about credit reports, available by phone at 800-582-5823, or on the Internet at The web site provides additional resources, such as a budget calculator and on-line bill-payment.

— Continental Travel Vouchers allow students to fly for as little as $159 round-trip up to four times a year on Continental Airlines — and a friend can come along for the same low price!

— Two hours of free long-distance calls with Connections(SM) calling card provides up to 10 free minutes a month, a low rate of 15 cents per minute on calls within the U.S., and free enhanced services like voice mail, a fax mailbox, four-way calling and news updates.

— No Annual Fee and Payment Flexibility means a very low interest rate, equal to Prime +0% on single purchases over $200 for 90 days, and annual percentage rate of Prime +7.9% on other outstanding balances for accounts in good standing. Students can pay the balance in full each month, or extend it over time.

— Purchase Protection covers items purchased on the Card against accidental damage or theft for 90 days from the date of purchase, up to $1,000 per occurrence. Buyers Assurance extends the manufacturer’s warranty for items purchased on the Card up to one additional year. Restrictions apply.

“College is a time when students learn skills that extend beyond the classroom, such as how to manage time, money and day-to-day problems on their own. Financial responsibility should be a natural part of this process. To help them learn how to establish and maintain good credit, American Express has developed a Credit Information Service to accompany our Credit Card for College Students,” said Marla Isackson, Vice President of Customer and Product Marketing for American Express, noting that Student Cardmembers will also receive a free educational brochure entitled “How To Lay The Groundwork For A Strong Financial Future” when they enroll.

“We also want to help students by offering benefits relevant to their lifestyle needs, such as savings on travel and long-distance phone calls, and an extremely low interest rate on high-priced purchases,” Isackson said.

American Express also offers a charge card for college students who want the financial discipline of paying-in-full each month. The American Express Charge Card for Students offers all the benefits and services of the Credit Card, Travel Accident Insurance and the opportunity to enroll in the Membership Rewards program. The Charge Card has an annual fee of $55; the Membership Rewards program has annual fee of $25.

American Express Company is a diversified worldwide travel and financial services company founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking.

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