Can you direct deposit money into a American express prepaid card?

Answer 1

As of today March 16th 2012, the answer is NO.

Currently, there are only two ways to fund the American Express prepaid card which either costs you money or costs you time:

Method 1: Costs you money - Load with cash using a MoneyPak you purchase at a local store; usually costs $4.95 (plus the gas you spent driving there and right now gas is $3.80 a gallon where I live) depending on location its purchased from. The funds appear on the American Express card in 30 minutes. However, keep in mind this will get costly if done on a regular basis.

Method 2: Costs you time - Funds transfer from another existing bank account, which is free but typically takes 3-5 business days to show up on the AMEX card. I did a transfer from my checking account once just to test the time it would take for the transfer; it took 5 business days which felt like eons.

Both methods are a waste of time or money. AMEX really needs to add direct deposit as this is the only downfall of the card; maybe if enough people rave and rant to them about it, they will change it. Its the only reason why my AMEX prepaid card collects dust in my desk drawer or otherwise I'd use it. It really makes no sense why the average single user would have money direct deposit into their bank account and then have to wait an additional grueling 5 business days to transfer the money to the AMEX card just to be able to spend their cash. God forbid if a holiday falls between those 5 business days.

I guess it would make sense if you planned on just banking the money but it doesn't even make sense to do that because you don't earn interest from the money just sitting there. Personally I am just waiting for the summer when I go on vacation to fund the card to use it to take advantage of the traveler's perks, so for me it will have a once or twice a year use.

The only customers I can see truly benefiting from this card are parents who want to fund the card for their kids or say someone who is giving someone money on a regular basis. But if they become the sole users of this card, I can see this card being very short-lived before the costs to maintain the program overpower the amount of users who are actually using it. AMEX has tried to promote that by using the card on a regular/daily basis you could become eligible for an AMEX credit card, but for me, that really isn't enough reason for me to want to use the card either as it just takes too much of a hassle to even get funds to it.

For the average user who plans on using the card for themselves, the card really isn't practical or worth the time or money when there are other free prepaid cards out there that do have direct deposit and you can spend your money as soon as you get it instead of twiddling your thumbs for a week or more waiting for the funds to show up.

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UPDATE: May 9th, 2012

Don't know when it officially started but I just received an email from AMEX today that says you can now direct deposit money onto the AMEX prepaid card. However there is a catch; it does not accept all kinds of direct deposits.

1. The direct deposit cannot exceed the monthly load limit of $2500
2. Payments by the U.S. Government may not be Direct Deposited to the American Express Prepaid Card. This includes wages if you work for the U.S. Government, benefits such as Social Security, SSI, civil service retirement, VA compensation/pension, worker's compensation, Federal tax refunds, etc.

So, I had gotten one for my mom and I was excited that it now had direct deposit for her, well that got shot out the sky when I read let down #2 because she works for the U.S. Navy so she can't use it.

Answer 2

No, most banks will not deposit an American Express gift card. The best option is to purchase a money order with your gift card and deposit that.