Note: Revolution Money Exchange was purchased by American Express and is now known as Serve by American Express. Read our Serve from American Express Review for more information!
Revolution Money Exchange is a new peer to peer money exchange program that plans to challenge PayPal by offering free on-line money transfers. That’s right. No more complicated fee structures to decipher (and pay!) when sending or receiving money on-line. I love the convenience of PayPal, but I hate paying the fees!
What is Revolution Money Exchange? Revolution Money Exchange is an on-line money transfer company that allows people and merchants to exchange money without paying fees. It’s free to register, add money, send money, receive money, request money and withdraw electronically to a bank account. There are fees to withdraw money by check or to receive a paper statement.
How is Revolution Money Exchange Different from PayPal? The biggest difference is in the fee structure, but there are several other notable differences. With Revolution Money Exchange, the only fees you will pay will be to receive a paper statement, withdraw funds via check, or if you mess up (withdraw too much, “bounce a check,” etc.). The good news is that you can use Revolution Money Exchange without being subjected to fees. With PayPal on the other hand, fees are practically unavoidable. PayPal’s fees are often substantial, and sometimes you don’t know what you will pay until you pay them.
With Revolution Money Exchange, there are also daily transfer limits of $1,000, and maximum monthly transaction limits of $2,500. The max you can keep in your account at any given time is also $2,500. This makes it less flexible for people using the accounts to run a business. There are also fewer merchants that currently accept Revolution Money Exchange transfers than accept PayPal. Account holders can only send and receive money with ACH transfers or transfers between Revolution Money Exchange accounts, there are no credit card transactions.
Is Revolution Money Exchange safe? Yes. It was important for me to research this before I signed up, because Revolution Money Exchange requires your social security number to create an account. Don’t worry, there is no hard credit check done using your SSN. It is clearly stated on the sign-up form – “This information is not used to review your credit history or to establish new credit.”
The account is issued by First Bank & Trust, Brookings, SD, Member FDIC and part of the Fishback Financial Corporation. It is also backed by Citi, Morgan Stanley, and Deutsche Bank AG, and brought in a $50 million venture capital round backed by Ted Leonsis and AOL Founder Steve Case.
Where can I use Revolution Money Exchange? You can use your Revolution Money Exchange account to transfer money to other members of Revolution Money Exchange, or you can sign up for their card which can be used at multiple merchants. The list is growing daily, as is the number of Revolution Money Exchange users.
How does Revolution Money Exchange make money? OK, it’s free to add money, send money, receive money… How does Revolution Money Exchange profit from this? First, the money held in your Revolution Money Exchange account does not earn interest for you. Your money is not in a savings account, though it is held at a bank. Second, electronic currency transactions are incredibly inexpensive to perform. That’s why so many banks offer free on-line bill pay. Finally, I’m guessing Revolution Money Exchange invests the money in it’s users accounts and earns interest on it while it is not being used. However, I’m not 100% certain on that last part, because I couldn’t find actual proof of that. However, I think that is a fairly reasonable assumption.
The RevolutionCard is offering a cash bonus of up to $100 for new users. This deal is open from now until January 31, 2009.
How to claim your RevolutionCard Cash back Bonus
- Become a Revolution Money Exchange user.
- Sign up for the RevolutionCard (this is a credit card).
- Spend $50 or more with your RevolutionCard credit card between 11/15/08 and 1/31/09 and receive a $5 credit on your statement. This offer may be used up to twenty (20) times for a maximum credit to your account of $100. Please allow up to 5 business days for qualifying credits to appear on your account.
- Repeat up to 20 times for a total cash bonus of $100. Expect your bonus to appear within about 5 business days of your purchase.
Visit their promo page for more details on this account bonus.
About the RevolutionCard
The RevolutionCard is part of the company that owns Revolution Money Exchange,a free alternative to PayPal. The unique feature about the RevolutionCard is that it does not have any personal identification located anywhere on the card. It is accessed solely through the use of a PIN. This is a security feature – without the PIN, the card is useless. Revolution Money’s RevolutionCard is the only interchange free credit card and they only charge 0.50% transaction fees, which makes the RevolutionCard more user friendly for businesses and customers alike.
The card can be used at over 300,000 stores, some of which offer discounts or rewards for using the RevolutionCard.
Here are more credit card bonuses.