Revolution Money Exchange

Revolution Money Exchange is trying to place itself as a viable alternative to money processing companies like PayPal and OboPay. One immediate advantage stands out right form the start – no fees if both parties are Money Exchange members. I can see that being a huge selling point in trying to woo business away from established sites that charge excessive fees, like PayPal.

Money Exchange assures customers that it fully insures its funds. It also lists a large number of free transactions, only charging fees for transaction involving paper (like check transfers or paper statements) or the involvement of someone’s time on their staff (things like ACH returns and overdrafts that require processing). The list of free services includes:

• register for an account
• add money to your bank account
• send money
• receive money
• request money
• transfer money to your bank account

Any time a financial service pops up on the internet horizon, the question becomes “Is this company stable?” Users don’t want to put their money into an online only account that may not be around for the long haul. I’ve only been testing the site for a short while, so I can’t give you any helpful advice on longevity, yet.

The company is also offering a Revolution Card, a credit card that seems to be a “stealth crd”, operating with a PIN system good for one time purchases or regular credit. The company says the card is not embossed with your name or account number, which makes me wonder if anyone will accept it offline. Most stores check that information to verify the transaction, so a blank card should make things more interesting, PIN or not.

Some drawbacks to the Money Exchange service are its limits. It has a monthly cap of $2500 USD right now, an amount that won’t work for freelancers who may have a larger job they need to be paid for. The site also doesn’t have any disclosure about foreign users. Without a clear policy about allowing foreign money transfers, Money Exchange is alienating foreign clients for many freelancers, borrowers and sellers.

It’s nice that 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. The timing couldn’t be better than right now, especially since eBay is playing games with its long term user base. 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 the auction giant.