What Is This New “Rewards Debit Card” & “Bank Franchise”?
You may have recently seen social media posts from strangers and friends about a new banking franchise that will change “so many lives” or about the new debit card that will give you all kinds of “amazing rewards,”… but the poster will not share the name of this company unless you privately message them.
They will use language meant to trigger emotions to draw you in:
”NOW is the time to jump on!”
”Pay off your credit cards, car payments, mortgage and more!”
”Love to travel?”
”Harvard and Yale are behind this card…”
”This is so easy; anyone can do it!”
Here’s what I know:
This company, TranzactCard, charges $25 for you to become a member. You can then load funds to the “debit card” and spend them. For every $ you spend, you earn a “Z-Buck” to spend in their online store. From their website: “Each Z-Buck is worth one US Dollar in the Z-Club. Redeem Z-Bucks to buy down the retail price of everyday products, services, and travel packages. Take advantage of exciting flash sales that can only be purchased using Z-Bucks. Earn even more Z-Bucks on qualified purchases.”
While they and their salespeople refer to this card as a Debit Card, their terms of service refer to e-z power cards and gift cards. It is very unclear as to whether any of this is FDIC insured. They were previously FDIC-insured through Solid Bank, but according to Behind MLM, they lost US Banking services earlier this year. In addition, their terms of service say that they should not be held liable for issues related to the cards, even due to their own negligence.
Beyond the card, you could also become a “Digital Branch Office.” For $495, plus $50 a month, plus a 10% service fee, you could then “earn revenue” for selling/promoting the card to others. When people join, you earn commissions. What happens if you want to leave? The $495 is non-refundable, and “any commissions, bonuses, or rebates must be returned.” Many of their independent Digital Branch Office websites still claim they work with Solid, though they do not.
Their website is riddled with red flags and disclaimer information including that they are not a banking platform, yet other portions say you may be asked to provide a copy of your ID to open an account. It claims that the website contains forward-looking information that may never come to fruition and that you should use caution and practice due diligence.
As a financial counselor, I urge you to research before engaging with this or any of its representatives. Their representatives are often not financial professionals with credentials or financial education background. Their claims for you to be able to pay off debt or achieve financial success are not based on any factual or practical information.
What I would explore is what intrigued you in the first place…
If it is the thought of paying off debt, taking your family on vacation, or not panicking when an unexpected bill comes up, I want to reassure you that all those things are attainable. A financial professional working as a fiduciary (with your best interest in mind) can help you unpack your finances, set goals, and create a sustainable and legitimate path to reach them.
