AmEx offers cash back on debit-card buys

NEW YORK » American Express is adding cash back, a popular credit card feature, to its prepaid debit cards as it seeks users beyond its traditional customers.

The company has long relied on the corporate traveler and the well-to-do, but increased competition has forced it to look at new customers. Prepaid cards, which appeal to lower-income Americans and people who don’t have traditional bank accounts, are a small and growing business.

CEO Kenneth Chernault has said American Express would spend heavily this year to create new products and keep its already existing customer base.

On Wednesday, AmEx released a new Serve card that will give users 1 percent cash back on all purchases. It’s the first time a prepaid debit card has offered cash back for every buy. Some prepaid cards offer cash back at certain retailers.

The monthly fee will be $5.95, so you have to spend roughly $600 a month to break even on the card.

AmEx entered the prepaid debit card market three years ago with a co-branded card with Wal-Mart Stores Inc. called BlueBird.

U.S. airlines forecast busy Labor Day week

Air travel traffic over the Labor Day holiday is expected to rise 3 percent compared with last year, to 14.2 million passengers, as airlines in the U.S. continue to add seats and upgrade aircraft during an era of industry prosperity and increased scrutiny.

During the seven-day Labor Day travel period, Sept. 2-8, the industry expects 2 million air travelers per day, about 59,000 more daily compared with last year. Sept. 4, a Friday, is expected to be the busiest day for flying.

The group previously predicted an all-time high for summer air travel, and numbers so far show the industry is on pace to see that, said John Heimlich, chief economist for Airlines for America, the primary airline industry trade group in the U.S. Strong demand and low fuel prices are driving an unusual period of prosperity for the airline industry, Heimlich said. That profitability has enabled airlines to buy new planes and add service and technology at the highest rate in 15 years, the group said.

Coming Up

» Tuesday: Standard & Poor’s releases S&P/Case-Shiller index of home prices for June and the second quarter. Commerce Department releases new home sales for July. The Conference Board releases the Consumer Confidence Index for August.

» Wednesday: Commerce Department releases durable goods for July.

» Thursday: Commerce Department releases second-quarter gross domestic product. Freddie Mac, the mortgage company, releases weekly mortgage rates. National Association of Realtors releases pending home sales index for July.

» Friday: Commerce Department releases personal income and spending for July.

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