topic Zero Card ( Debit/Credit ) in Personal Finance

Zero Card ( Debit/Credit )

Anonymous — Sun, 25 Dec 2016 19:50:07 GMT

Hello !

Merry Christmas everybody. This is my first post in here although i have been a long time reader but since i never had any questions or any major credit achievment to share, never pulled the trigger on creating account!

I was searching online and saw an interesting platform(a start up in CA) that are going to offer 3% cashback on all purchases. The interesting part is that they are not basically the classic CC company and have a concept of debit card that acts like a CC card. Long story short to satisfy my curiosity i signed up for their early access program and it seems they have tiered system based on how much you spend on a yearly basis. Good news is that right now you can reach the 3% tier by bunch of social shares and inviting two more people , (which seems pretty easy in comparison to 100k per year spend).

Thought maybe this would be interesting for people who are still searching for 3% cards for all purchases (This should beat the USAA Limitless practically).
http://imgur.com/a/SN11L ( picture of their approval system)

Re: Zero Card ( Debit/Credit )

Anonymous — Sun, 25 Dec 2016 21:07:32 GMT

I feel like they're not going to be able to offer anywhere near 3% for long, mostly due to their problematic classification of their card as a credit card. (And even if that's legally acceptable I have the feeling that fee caps on the credit side are inevitable too, but that's for another thread.)

But even besides those issues, I would think that managing true credit cards isn't that big of a deal thanks to stuff like Mint?

Re: Zero Card ( Debit/Credit )

csryang — Sun, 25 Dec 2016 23:49:02 GMT

From fieryred29 on reddit who claimed to be the CEO of Zero: http://imgur.com/a/eQ7fq.

"We believe that most people will level up via referrals (a program we will likely continue past product launch) rather than by meeting the minimum spend requirement. Remember that referrals will require referred users to be a unique person, add payroll direct deposit, and meet several other criteria (i.e. they will have to be a genuine, new customer)."

Runs on credit card platform, so no lower fee to use as a debit card

Cash back payments will be monthly

Cash back is not retroactive

Tier earned will only last the current calendar year and the next calendar year

$100,000 annual spend required for 3% cash back.

Or bypass this via referrals (from Doctor of credit website)

Use a friends link and receive graphite level
Share on facebook and receive magnesium
Share with three friends and get carbon status

For me, I dont think it's worth it. Churing credit cards for their bonuses is much easier. I dont think this card offer any sign up bonus except referral bonus after certain threshold. To beat $500 or equivalent sign up bonus from some credit cards, you need to spend over 16k when you receive 3% status on Zero card. Also, signing up for this card might likely cause a hard credit pull upon card launch time.

Re: Zero Card ( Debit/Credit )

Anonymous — Mon, 26 Dec 2016 00:08:28 GMT

The solution to this ^ above is to invite as many people as will accept before it launches. Once you reach the 3% tier (3 people), each person afterwards amounts to a $100 bonus when you do open the card. I'm at $300 and counting...can easily get to $600-800 if I remember to keep inviting in the new year. Requirements are opening the account and at least 2 DDs after opening to get the bonus.

Re: Zero Card ( Debit/Credit )

Anonymous — Mon, 26 Dec 2016 01:28:25 GMT

I'm confused is this a debit card that acts like a credit card or is it an actual credit line?

Re: Zero Card ( Debit/Credit )

Anonymous — Mon, 26 Dec 2016 02:00:33 GMT

Hope I don't get flamed for saying this but I hate the whole thing. Was even interviewd by bloomberg about this. Its convoluted with referrals and to me just feels wrong.

However, if it works for some people then that is great. Its all based on referrals.

Re: Zero Card ( Debit/Credit )

Anonymous — Tue, 27 Dec 2016 02:48:14 GMT

@Anonymous wrote:
I'm confused is this a debit card that acts like a credit card or is it an actual credit line?

No credit line. It's a debit account that earns a "competitive high interest rate" (probably 1%?) but operates on the credit card networks, which allows for the 3% cash back given the higher fees

Re: Zero Card ( Debit/Credit )

Anonymous — Tue, 27 Dec 2016 02:49:04 GMT

@Anonymous wrote:
Hope I don't get flamed for saying this but I hate the whole thing. Was even interviewd by bloomberg about this. Its convoluted with referrals and to me just feels wrong.

However, if it works for some people then that is great. Its all based on referrals.

What about it feels wrong? Is it the fact that there's no credit extended and that it's actually a debit card? Or is it the hand wrangling to get the 3% via referrals?

Re: Zero Card ( Debit/Credit )

joltdude — Tue, 27 Dec 2016 13:13:16 GMT

@Anonymous wrote:
@Anonymous wrote:
Hope I don't get flamed for saying this but I hate the whole thing. Was even interviewd by bloomberg about this. Its convoluted with referrals and to me just feels wrong.

However, if it works for some people then that is great. Its all based on referrals.
What about it feels wrong? Is it the fact that there's no credit extended and that it's actually a debit card? Or is it the hand wrangling to get the 3% via referrals?

Basically your selling out your friends for referrals...its really similar to multilevel marketing.. MLM schemes....(hand wrangling your friends for referrals)

Its not just an email. these folks have to give credit card like financial information for a Debit card.... (if its a debit card, label it as such and dont be so nosy into my finances)...

Re: Zero Card ( Debit/Credit )

csryang — Tue, 27 Dec 2016 22:57:52 GMT

@joltdude wrote:
@Anonymous wrote:
@Anonymous wrote:
Hope I don't get flamed for saying this but I hate the whole thing. Was even interviewd by bloomberg about this. Its convoluted with referrals and to me just feels wrong.

However, if it works for some people then that is great. Its all based on referrals.
What about it feels wrong? Is it the fact that there's no credit extended and that it's actually a debit card? Or is it the hand wrangling to get the 3% via referrals?

Basically your selling out your friends for referrals...its really similar to multilevel marketing.. MLM schemes....(hand wrangling your friends for referrals)
Its not just an email. these folks have to give credit card like financial information for a Debit card.... (if its a debit card, label it as such and dont be so nosy into my finances)...

I agree with jfriend33 and joltdude. This is card is not for me either. I also do not like using referrals to get bonuses/tier reward. If you can get 15 sucessful referrals every 3-6 months, it might beat churning credit card bonuses.

1) For most people, getting that many sucessful referrals on the regular basis might be challenging.

2) Working as a debit card, I wonder if you need to have the amount of money in their checking account in order to spend that much. This might create some inconvenience and minor opportunity lost for the money in the checking account that month.

3) Lastly, getting that 1% extra cash back compared to most 2% cash back cards is really minimal for most general use.

Re: Zero Card ( Debit/Credit )

SunriseEarth — Wed, 28 Dec 2016 01:37:38 GMT

This thread has been moved from the Credit Card forum to Personal Finance, as the product involves a combination of financial services, including transactions processed over credit card networks as well as ACH and Fedwire transactions. Also, the company itself is not a charter bank and does not extend credit directly. If you have any feedback on Forum placement, please feel free to contact me directly.

SunriseEarth

Moderator

Re: Zero Card ( Debit/Credit )

UncleB — Wed, 28 Dec 2016 14:08:05 GMT

I'm not going to pass judgement yet, but I do think this reminds me of Perkstreet Financial, and that didn't end well.

Actually, Perkstreet's rewards weren't even as generous as Zero is advertising. Perhaps Zero has better accountants.

https://en.wikipedia.org/wiki/PerkStreet

https://www.bostonglobe.com/business/2013/08/14/perkstreet-financial-shuts-down-after-five-years/HJQqpQYgS07yQk7nWvr8MP/story.html

http://www.bizjournals.com/boston/blog/startups/2013/08/dave-ramsey-perkstreet-slimeballs.html

In early 2012 I almost went with Perkstreet myself, but instead I decided on a bank in Texas I was newly familiar with called USAA... I would say that turned out to be a good decision.

Re: Zero Card ( Debit/Credit )

Anonymous — Wed, 28 Dec 2016 14:40:35 GMT

@Anonymous wrote:

Merry Christmas everybody. This is my first post in here although i have been a long time reader but since i never had any questions or any major credit achievment to share, never pulled the trigger on creating account!

I was searching online and saw an interesting platform(a start up in CA) that are going to offer 3% cashback on all purchases....

Hi Panda. Not sure if anyone has said this yet, but we are happy you are here and glad you got up the courage to make your first post. Good for you!

Re: Zero Card ( Debit/Credit )

Anonymous — Wed, 28 Dec 2016 16:15:25 GMT

Hopefully, people will refer others because they believe in the product and like the service, and not to just get the bonus. Otherwise, motivation for referring is misplaced.

Not for me though.

Why have a debit card act like a CC but probably won't have the same brand protection of a CC? There are other things to consider when allowing something to be directly connected to your hard earned cash beside a bonus.

As someone else mentioned, I hope the accounts have done the math on this one.