Chime is a financial technology company. They have created a basic banking service, making online banking helpful, easy, and accessible. They are not a bank themselves but partner with regional banks to help customers get the best deals possible. With no overdraft fees, monthly service fees or minimum balance requirements, there seem to be many advantages to Chime, but is Chime all it’s cracked up to be? With complaints of difficulty accessing accounts and funds, as well as poor customer service, there is some risk involved when investing your money with Chime. However, overall, they seem to be a trustworthy service, creating an easy way to manage your money.
Chime Company Information
| Official Website: | http://www.chime.com |
| Headquarters Location: | San Francisco, California, United States |
| Founded: | Chris Britt and Ryan King in 2013 |
| Industry: | Banking and Finance |
| Ownership: | Chris Britt |
| Contact: | Telephone: 844-244-6363, Email: support@chime.com |
| Trust Score: | Good |
| Social Media: | Facebook: @chime, Twitter: @Chime, Instagram: @chime |
What is Chime?
Chime is not to be mistaken with a bank; it is a financial company that offers a basic banking service, combining all the information from other regional banks. By partnering with regional banks, Chime has created a user-friendly financial product, making online banking easier for customers. Its mission is to build “a new kind of online bank account that helps members get ahead by making managing money easy.” Chime takes pride in its members, being a human-orientated business that focuses on simplicity, teamwork, and many other aspects. By being a “member-obsessed” company, Chime concentrates predominantly on their customers, making their services as consumer-friendly as possible, as well as claiming to offer close human connections through their customer service. Within their banking service, Chime offers many different accounts, including the opportunity for a credit card or a savings account, as well as advice on how to improve your finances.
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Is Chime safe or a scam?
Reputation
Chime has a reasonably good reputation, receiving a 4.0-star rating on Trust Pilot, with the majority of customers being thrilled with the services they received from the company. There are few to no complaints of scams occurring when using Chime, the main criticism being related to accessing the account or customer service. . For more than 70% of customers, as reported on Trust Pilot, Chime is an excellent banking service, making online banking an easier process.
Regulations
As a banking service, Chime is controlled by multiple different companies, and boards, meaning they have to reach a certain standard. They pride themselves on being regulated by the Federal Deposit Insurance Corporation (FDIC), the Consumer Financial Protection Bureau (CFPB), the Department of Justice (DOJ), and many other agencies. Furthermore, they are supervised by their partner banks, Bancorp Bank and Stride Bank, which are also regulated by the FDIC and the Office of the Comptroller of the Currency (OCC) themselves. With all these regulations and agencies, Chime is held to a high standard, giving customers assurance that their money is protected.
Data Protection
Due to the multiple companies regulating them, Chime is held to very high security and data protection standards. Consequently, there have been few complaints on this matter, Chime priding itself on data security.
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Is Chime reliable and trustworthy?
Reviews
Chime has received many positive reviews, achieving a 4.0-star rating on Trust Pilot. Despite this, there have been some complaints about accessing accounts and funds, earning Chime a 10% “bad” reputation. Some customers have reported having their accounts locked for seemingly no reason; Chime is doing this due to suspected security reasons. However, this creates a significant inconvenience for consumers. Despite these complaints, the majority of customers are delighted with the services Chime offer, with 77% of customers calling the service “excellent”.
Customer Support
Additionally, Chime has received reports of unhelpful and unfriendly customer service, as well as a lack of human contact. Despite priding themselves on being human, many customers could not reach a human agent in the customer service department.
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Pros and Cons
Pros:
- No minimum balance fees or monthly fees.
- No overdraft fees.
- Early access to funds; accelerated direct deposit, making funds available up to two days earlier.
- Build credit with no credit checks leading to an increase of 30 points on average per customer.
- All bills are done digitally.
Cons:
- No in-person branches and hard to contact a human in customer service.
- Complaints about accessing accounts and funds, accounts being frozen on security suspicions.
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How does Chime make money?
Chime makes its money through three main methods: interchange fees, ATM fees and interest on cash. Firstly, Chime charges an interchange fee on all transactions. This means that the merchant is liable for a processing fee to Chime every time the card is used. Generally, Visa receives 1.5%, and Chime takes a percentage of this. Secondly, when using an ATM outside of Chime’s established network, there is a $2.50 charge when withdrawing cash. Finally, Chime customers can invest in a savings account, these funds being lent out to other financial institutes; Chime then receives interest on this cash, as well as the customer also receives gains on this investment.
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Best Alternatives to Chime
- N26 bank account- voted “Best Bank in the World 2021”.
- MX- allows for financial account verification to ensure safe transactions.
- STARLING- “Britain’s Best Bank”.
- MyBank- over 210 bank partners within the MyBank network.
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FAQ’s
What type of account can I get with Chime?
There are three types of accounts that customers can hold with Chime. A Chime Visa Debit Card, an FDIC-insured deposit account, and a Savings Account. All accounts are insured for up to $250,000 through Chime’s partner banks, Stride Bank, Bancorp Bank, etc.
What is needed to start a Chime account?
To open a Chime bank account is requires three things: you must be a U.S citizen, you must be at least 18 years old, and you will need your social security number. These criteria help verify your identity and reduce the risk of financial fraud. Once verified, customers can set up an online account and download the mobile banking app.
What is Chime Credit Builder Card?
A Chime Credit Builder Card is designed to build and enhance your credit profile, making it easier later down the line to receive loans or other investments from banks, such as mortgages. There are no credit checks involved when applying for this card and no annual interest or fees on the account. However, to apply, you must already have a direct debit account with Chime. Furthermore, your credit limit can be no larger than your deposit, so the more you put in, the more you can get out of your account.
What is Automatic Savings?
Whenever a customer uses their Chime Visa Debit Card, Chime rounds up the transaction to the nearest dollar amount. This money is then transferred from the customers Spending Account to their Savings Account. These savings usually appear in your account by the next working day. Customers can turn this off through the mobile app or Chime website. However, when opening your Savings Account, customers are asked if they would like to opt into Automatic Savings.