Everything You Need to Know Before You Switch From AMEX Serve to the Target Prepaid REDcard!

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Update:   You can no longer load Target Prepaid REDcard with debit cards or gift cards.

Million Mile Secrets reader, David, commented:

I’m wanting to cancel my AMEX Serve account to open a Target Prepaid REDcard account.  I recently sent 2 checks that have already been issued and the amounts have been deducted from my account.

If I cancel the Serve card and those checks have not yet been deposited by the payees, will the checks bounce?  Thank you for all your advice!

If David closes his Serve account, his outstanding checks shouldn’t be impacted.  Find out why and other tips for switching to the AMEX Target Prepaid REDcard!

What’s the Target Prepaid REDcard?

Link:   Why the New REDcard Beats Bluebird & Serve

Link:   How to Get the Target Prepaid REDcard If It’s Not Available in Your State

The Target Prepaid REDcard is the latest in a line of AMEX Prepaid cards, which also includes AMEX Serve and Bluebird.

With the AMEX Target Prepaid REDcard you can:

• Add money (via loading at the register at Target stores, linking your bank account, or linking your debit card)
• Withdraw money from ATMs (free at Target and Allpoint Network ATMs)
• Set-up direct deposit
• Use online bill pay
• Create sub-accounts (for example, your kids or your sitter)
• Have NO monthly fees

But what sets this card apart is you can add funds to it directly with a credit card at most Target stores (at least for now!)

This makes it easy to earn points and meet the minimum spending requirements on credit cards.

Note:   Here’s how my post explaining how to get the Target Prepaid REDcard.

Unfortunately, you can only have 1 of the 3 AMEX prepaid cards.  And now AMEX Serve will only accept AMEX credit card for online reloads.  For these reasons many folks, like David, are making the switch to the Target Prepaid REDcard.

How to Close Your AMEX Serve Account

David can close his account by calling 800-954-0559.  But it seems that the AMEX Serve customer service folks aren’t well informed about closing an account.  So calling could make the process a lot more complicated.

Instead, David is likely better off closing his account online.

Closing your account online is easy.  Just log into your account and click the “Profile” tab.

Then scroll to the bottom of the page and you’ll see the “Close Account” button.

Once David receives the confirmation email that his AMEX Serve account has been closed, he can activate his new Target Prepaid REDcard!

What If You Just Sent Out Checks or Have Money in Your Account?

Checks

David sent out checks that the payees haven’t cashed yet.  But the amount of the checks has already been taken out of his account.  So will those checks bounce if he closes his account?

The checks should still go through.  That’s because the money already was removed from his Serve account, so the check is funded.

According to Serve customer service, folks should wait 3 to 5 business days after sending a check for it to post before canceling account.

That said, if David has sent a check to pay an important bill, like his mortgage, he may want to err on the side of caution and wait until the check is cashed.

Remaining Balance

If David has any funds left in his account, Serve says they’ll send a check for any balance remaining in your account.

However, it’s a good idea for David to withdraw any funds and make sure the money is safely in his bank account before he begins to close his Serve account.  This should only take a few days, and it’s worth the wait to prevent any potential complication.

Bottom Line

Many folks are closing their AMEX Serve account in order to open a new AMEX Target Prepaid REDcard account.

If you recently sent out checks, they should still go through, because the money has been taken out of your account.  This can take 3 to 5 business days.

But folks who have an important check pending may want to wait until the check is cashed, just to be sure there are no problems.

And if you have money left in your account, you may want to transfer it into your bank account 1st, even though Serve says they will send you a check.  You don’t want your money to wind up in limbo!

Once you’ve completed those steps, the easiest way to close your account is online.

You should receive an email confirming your account has been closed.  Then you’re ready to register for the AMEX Target Prepaid card!

Thanks for your question, David!