Zync by American Express

American Express recently launched a new card designed for young adults. Called the Zync by American Express, the charge card takes an innovative approach to the credit card market. Before we get to that innovation, however, there are two things we need to cover. Zync is a charge card, not a credit card, and it comes with a $25 annual fee.

Unlike a traditional credit card, a charge card must be paid in full each month. That’s good news if you don’t want to pay interest charges or ring up a bunch of debt. A charge card can also help keep you disciplined if you tend to charge up cards and carry a balance from month to month. The interesting angle with Zync, however, is that it is designed for the younger generation. In fact, the Zync card is the first charge card to be marketing to young adults.

So apart from marketing a charge card to a young adult, where’s the innovation? The innovation comes in what American Express calls Lifestyle Packs. Lifestyle Packs allow you to choose your rewards based on your lifestyle. American Express offers four options:

• Go Pack (+$20): The Go Pack allows you to earn 2x rewards points on airfare and annual membership in the Credit Card Registry (a $29 value), which enables you to cancel your card from anywhere, and helps to replace lost passports. You will also earn up to 25% off at select travel retailers like Avis or Hertz, a free GPS with rental, and $50 credit on AmEx Vacation packages if you sign up by December 31, 2010.
• Social Pack (+$20): This package allows you to earn double the Membership Rewards on purchases made at restaurants or for events. You will also get special access to events tickets before they are available to the general public through the exclusive e-newsletter.
• Connect Pack (+$20): The Connect Pack earns you twice the rewards on mobile and cable services, from cell phone to broadband internet. You will also be awarded a 25% reward point discount when you purchase mobile devices at www.membershiprewards.com.
• Eco-Pack (+FREE): This package comes at no additional annual fee, and earns you double rewards for purchases made from select “green” merchants as rated by Greenopia. You also get access to Grenopia’s Eco-Concierge service, and spend 25% fewer points on eco-products at www.membershiprewards.com. In addition, for every Eco-Pack membership, AmEx will buy $1 of carbon offsets for reduced carbon emissions.

Zync from American Express(R)
	Earn 10,000 Membership Rewards Express(R) points with your first purchase Customize the Card with features and benefits that suit your lifestyle Zero interest because you pay in full each month Receive Membership Rewards Express points for every eligible dollar you spend, then redeem points for great travel, shopping, and entertainment rewards
Intro APR Intro APR Period Regular APR Annual Fee Balance Transfer Credit Needed N/A N/A N/A $25 annual fee No Excellent