The 4 purple flags of the Tranzact debit card

I’ve been getting emails from a bunch of readers asking for us to do a Tranzact debit card assessment eager to know what I take into consideration the Tranzact rewards card.

For those who haven’t heard, mainly, it’s a debit card with a optimistic social affect that gives “Z-Bucks” that can be utilized to purchase on a regular basis objects.

In concept, I really like what Tranzact is doing, however in actuality, I will likely be actually stunned if that is nonetheless round in a 12 months.

I’ve seen numerous MLMs (Multi-Stage Advertising and marketing corporations) like this come and go and as a lot as I’d like to see this succeed, it appears like an enormous pyramid scheme to me and so I’m passing on it.

I’ve some associates who’re utilizing it and who’re enthusiastic about it, however I at all times do my very own due diligence and go along with my instinct and I’m not feeling good about Tranzact card.

These are the purple flags and the explanations I’m passing on Tranzact (and ensure you learn til the final one, as a result of it’s the nail within the coffin for me.)

4 purple flags and causes I’m not going to get the Tranzact card

1. They speak extra about getting cash than the product itself

I take advantage of and advocate numerous merchandise which have referral applications as a result of the referral mannequin simply works.

However it’s at all times a purple flag to me with any product after they spend extra time speaking about how one can earn a living from the product than the precise product itself.

It’s a clear indication of their focus.

And particularly with a probably revolutionary product like this, there needs to be much more time explaining the ins and outs of the product, somewhat than simply speaking a lot about the way you earn a living referring the product…

As a result of when all individuals give attention to is how a lot they’ll earn from SELLING the product, it’s simple to cover that the product itself isn’t really that good.

2. It’s important to pay charges to earn a living

With the intention to really earn a living referring individuals from this, you need to pay $495 after which $50/m and 10% service charge.

(Sure I do know that when you pay $25 to be a member you may get Z-bucks and within the subsequent level i’ll clarify why I don’t consider that to be what they’re promising.)

So, I’m a enterprise proprietor and we now have an associates program the place anybody can be a part of and refer individuals to our programs.

How a lot can we cost our associates to hitch this system?

ZERO DOLLARS!

Why would we make them PAY to refer individuals to us?

It is senseless until you really want these charges and that income to cowl the prices of the Z-buck rewards you might be paying out. And that’s the place we begin entering into Ponzi territory.

Moreover, I’ve been an affiliate and a part of nicely over 100+ referral applications, and never a single one made me PAY to earn cash from referring individuals… And the explanation why is that from a enterprise perspective, it simply doesn’t make sense UNLESS these charges are a main a part of your income.

An alternate instance

Instead instance right here, Rakuten is a cash-back app that has paid actually paid us over $3,000 {dollars} (not in “z-bucks” however in precise actual cash) over the previous couple of years.

It isn’t attempting to be a financial institution like Transzact is, however it’s fixing the identical drawback: making the issues that we purchase cheaper.

And never solely is Rakuten 100% free to enroll however they provide a $30 signup bonus to hitch.

So once I see Transzact making customers pay to have the ability to refer others, it simply is senseless and is an enormous purple flag to me.

3. The Z-Bucks should not price what they’re claiming

I’m skeptical in regards to the precise worth of the z bucks.

They declare that $1 Z-buck is price $1 greenback (USD).

They will declare that they’re price $1 all they need however they don’t seem to be price the identical quantity as an precise greenback when you can solely spend it on choose objects.

Give it some thought.

You probably have a $500 reward card to Chuck E. Cheese or $500 money which is definitely price extra?

The money proper?

As a result of the methods you’ll be able to spend it are limitless subsequently making it extra invaluable to you.

And when you had a $500 reward card at Chuck E Cheese you’d seemingly purchase belongings you didn’t want and even really need simply because you need to use it.

However $500 money has a lot extra worth to make use of as a result of we will use it ANYTHING – thus making it MORE invaluable than $500 you can solely spend on overpriced objects at Chuck E Cheese.

I believe it’s the similar with Z-bucks.

Moreover…

I’m guessing the objects you’ll be able to really spend Zbucks on are going to be significantly restricted and inflated.

For instance, within the video they discuss how you can get these knock-off RayBan Aviators for $120 Z-bucks.

Actual RayBans value that a lot, however you will discover knock offs for a small fraction of that.

In reality, with only a fast search on Temu I discovered that I may get them for $7.48.

So, in that case, your $120 Z-bucks are literally price… $7.48

My wager is that all the pieces you’ll be able to really spend your Z-bucks on is analogous and is wildly overpriced.

And eventually, the nail within the coffin for me…

4. The founder, Richard Smith, has a really shady previous

Ever surprise who’s behind the Tranzact card?

I did too. And it seems that the founder, Richard Smith, was charged with Securities Fraud in 2010, and “the fees pertained to Smith working two Ponzi schemes, which authorities declare Smith defrauded customers out of ~$10.9 million {dollars} by.”

That’s proper there may be sufficient for me to be extraordinarily cautious of getting concerned with something he created.

I’ve since heard that he’s now not the CEO, however let’s be actual. It’s very easy to step down as CEO whereas remaining a robust affect within the firm.

So, is Tranzact a rip-off?

Like I stated earlier than, I actually hope I’m flawed and I hope this upends the entire banking world. That might be completely wonderful.

However I’m uncertain.

All that stated I don’t suppose this can be a rip-off per se, however somewhat I simply don’t suppose it’s really a superb deal – particularly for most individuals who pay $495 to change into a “department supervisor”.

I’d wager 98% of people that purchase that bundle will find yourself dropping cash somewhat than getting cash, and I’m certain Tranzact is planning on that as nicely.

And like I discussed, I don’t suppose the worth of those Z-bucks is anyplace near the promise they’re making.

Backside line…

I’ve associates utilizing this program, and I’m going to face on the sidelines and allow them to report again to me over the months to come back.

I’d like to see this be a smashing success. And whether it is nonetheless round a 12 months from now and I can see extra worth in it, I’ll rethink at that time.

However for now, I’m passing on it.

I’d encourage you to do your analysis, be discerning, and pray about it when you determine to hitch.

Your pal and coach,