Have you heard of this site called Revolution Money Exchange?
Well I was making the blog rounds (the sum of my life these days) and I got sucked into signing up for this new money exchange site. It sounded interesting…as anything free does, and I decided to jump in and check it out. So read on to find out about it…
Launched in 2007, based in St. Petersburg, FL., aparently it is trying to place itself as a viable alternative to money processing companies like PayPal and OboPay. The biggest advantage is the no fee money transfer feature if both parties are Money Exchange members. Also you can link it to a bank account to transfer money back and forth. If you have ever had to wire money to someone you know how expensive and time consuming that can be.
Money Exchange assures customers that it fully insures its funds. According to the site the accounts are issued by First Bank & Trust, Brookings, SD, Member FDIC and part of the Fishback Financial Corporation. It also lists series B venture capital funding from Citi, Morgan Stanley, Deutsche Bank, Revolution LL to further the validity and staying power of this very young pony.
Addressing security issues all MoneyExchange transaction information is transmitted with a Secure Socket Layer (SSL) connection – like all financial institutions. In addition they request a personal identification number (PIN) before authorizing any transfer of money, thus ensuring an extra layer of security. Finally, the whole process is secured via a multi-factor authentication process and limit the amount you can transfer daily as well.
The list of free services includes:
FREE to register for an account
FREE to add money from your bank account
FREE to send money
FREE to receive money
FREE to request money
FREE to electronically transfer money to your bank account
A transaction fee applies for check withdrawals ($2.50 per check), check stop payments ($20 per check), paper statements ($5 per statement), ACH returns ($35 per returned ACH), and overdrafts ($35 per overdraft).
Some drawbacks to the Money Exchange service are its limits. It has a daily limit of $1000 USD and a monthly cap of $2500 USD right now. At this time, money cannot be sent or received internationally. You must be a U.S. resident to register for MoneyExchange. In addition, your MoneyExchange account can only be linked to a U.S. bank account. Money Exchange is cutting out the worldwide web compenant by not addressing foreign clients for many freelancers, borrowers and sellers. Hmmm…something to look into.
Money Exchange offers a solution for sellers to place an item for sale on their own website, eliminating the fees associated with PayPal, eBay and other auction sites. If Revolution Money Exchange were to increase its transfer limit to a more substantial amount than $2500, I think they could be a viable contender against these other sites as well as possibly motivate banks to start implementing easier and cheaper money transfer procedures. Wouldn’t that be nice.