Benzinga | Oct 28, 2021 03:20PM EDT

American Express Unveils Business Checking Account Product With Its First Debit Card

American Express (NYSE:AXP) has announced the introduction of its Business Checking account designed for small and midsized businesses and includes the company's first debit card.

What Happened: According to the company, the Business Checking account offers an APY of 1.1% on balances up to $500,000 and carries no monthly maintenance fee and no minimum balance requirement. The checking account connects with existing American Express credit cards and the new debit card can be used for fee-free cash withdrawals and balance inquiries at ATMs within the Moneypass network.

Beginning in 2022, Business Checking customers will be able to earn Membership Rewards points and redeem them for deposits into their business checking account.

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Why It Happened: Dean Henry, executive vice president of global commercial services at American Express, stated the new product offering came about "because businesses told us they want more from their existing checking account. It's a customer-first, full-service digital business checking account that makes cash management easy, processes a range of payment types and earns high-yield interest on balances up to $500,000."

The company added that the new product is the latest in its expansion of small business offerings that began with its August 2020 acquisition of the fintech Kabbage. American Express previewed the product in June with the news that it would be called Kabbage Checking, but that name was discarded in favor of Business Checking.