The latest product from American Express recently released is the Zync card. The purpose of this card is to be used by consumers hoping to get better control with their spending habits or otherwise with to take better responsibility on how they handle their money. It was also created with consumers in their 20s in mind.
Previous cards by American Express, such as Green, Gold or Platinum, require that consumers pay off their balance in full every month so that it does not build up any interest fees or charges. This has not changed with the Zync. Additionally, there are not any overdraft fees like debit cards usually do. Lastly, charge cards allow the consumer to build a credit history that can prove to be invaluable later on while debit cards cannot do this.
These kinds of charge cards, however, do not actually appeal to too many young people. This is what has prompted American Express to introduce Zync to the family of credit cards, hoping to appeal to the younger community of consumers.
For starters, the most basic form of the Zync card has an annual fee of $25 and allows consumers to participate in American Express’ Membership Rewards program that builds up points with each purchase. For those looking for more than just a basic credit card, a couple of so called packs are available for them.
The Go pack requires an additional $20 per year but doubles the points that a consumer earns on airfare. This, of course, is ideal for consumers who are always taking flights every which way around the globe. The Social pack is for, as the name implies, the more social of the pack, earning twice the points when using the credit card to purchase restaurant, theater and concert related activities. American Express has claimed that it wishes to add more choices of packs or even tweak the ones that are already there.
Whether or not they make a certain pack, they say, depends on the Zync Tank’s feedback, which is their online community. Indeed a good idea, but how active the employees of American Express are within the community remains to be seen.
What also remains to be seen is whether or not the young people the card aims to appeal to will abandon the credit cards that offer all the freedom in the world for this new charge card, as well as whether or not veteran debit card users wish to abandon the direct connection between their spending and their money.