Chime SpotMe Program 2024 : Advantages & Disadvantages | How it Works
Chime SpotMe Program : Advantages & Disadvantages | How it Works. The SpotMe program by Chime eliminates overdraft charges while giving you an untroubled shoulder to lean on when you’re in dire need of extra cash.
What is SpotMe program by Chime?
SpotMe lets you make debit card purchases that overdraw your account with no overdraft fees. Limits start at $20 and can be increased up to $200*. We’ll spot you when you need that little extra cushion to cover an expense.
Chime is an online-only company that partners with banks to offer its checking and savings accounts. Their debit card service which SpotMe is under is from The Bancorp Bank, you can use it everywhere, visa debit cards are accepted.
To get access to SpotMe, you need to have received a single direct deposit of at least $200 on or after July 27, 2021. To keep using SpotMe after that, you need cumulative direct deposits of at least $200 every month. These deposits can come from an employer or payroll provider, gig economy payer, or government benefits payer (including Child Tax Credit payments), and must be deposited into your Spending Account as an automated clearing house (ACH) transfer or Original Credit Transaction (OCT).
Chime SpotMe is an optional, no-fee service. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors.
Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. SpotMe won’t cover non-debit card purchases, including ACH transfers, Pay Friends transfers, or Chime Checkbook transactions. See terms and conditions.
What is the maximum amount I can overdraw using the Chime SpotMe program?
Like we mentioned earlier, a direct deposit of $500 gives you access to a chargeless overdraft of $20 on debit card purchases. Likewise, at the discretion of Chime, you can also receive an overdraft of up to $100 or more from the Chime SpotMe program.
However, your Chime Account history, direct deposit history and amount, spending activities, and other risk-related factors will be thoroughly scrutinized.
Who are those Eligible for the Chime SpotMe Program?
To qualify to overdraw from your Chime account with no service fee, you need to receive a $500 direct deposit 31 days preceding the day of the drawing. Then, you’ll be able to overdraw up to $20 on debit card purchases.
How Does the SpotMe Program of Chime Work?
Chime members that have a direct deposit of up to $500 can enroll in the SpotMe program. In case you forget there’s a program like this, don’t worry Chime will notify you. Basically, $500 gives you access to a free overdraft of $20.
But, when other factors like account activity and history have been reviewed, you can get up to $100 of overdraft.
So, when you make a debit purchase that exceeds your balance, Chime will spot you up to your limit. Remember that this only happens when you enroll in the Chime SpotMe program. As a result, when you make the next deposit, Chime will apply the negative balance to the deposit. They also give you a voluntary option of ‘pay it forward’.
This will allow them to help more customers under the SpotMe program. Also, it will in no way affect your SPotMe eligibility if you don’t oblige.
Advantages & Disadvantages of Chime SPotMe Program
The benefits of SpotMe outweighs the cons. We will list them below.
- Up to $20 to $100 monthly overdraft amount.
- Repayment is on the next deposit.
- No overdraft fee. You’ll be saved a $35 overdraft fee.
- No account link up is required.
Now to the Disadvantages of Chime SpotMe program. They are:
- You use only direct deposit and cash deposit can be difficult.
- The overdraft only applies to debit card purchases. That is way too streamlined for robust users.
- An online-only account with no access to physical branches. Tech-averse individuals might find this feature inept.
How do I enroll in the SpotMe Program?
- Open the Settings tab in your Chime app to find out if you’re eligible for the SpotMe feature. Use the latest version of the app.
- Once you agree to the SpotMe Terms and Conditions, you are officially enrolled.
- Then, you’ll be able to make debit card purchases that overdraft your account up to your limit. With no overdraft fees involved.
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