I’ve only known American Express’ BlueBird product as a great way of earning points, and especially meeting minimum spend requirements for credit card signup bonuses — buy Vanilla Reload cards (my local CVS still stocks them and takes credit cards) at $3.95 per $500, load the money onto the Bluebird card, then either have Bluebird make a payment to my credit card or transfer the funds back to my bank account.
But that’s not really the purpose on Bluebird, and you can get a clue for what it actually is by noting that it was launched in partnership with Wal-mart.
It’s a fabulous product for the unbanked. It started out as a prepaid American Express debit card that also served many of the functions of an online checking account. You could get cash from an ATM. You could use funds in your Bluebird account to pay bills (it has an online billpay function). You can transfer funds to and from accounts.
And there’s just about no fees attached (the only real fees involve ATMs). In fact, it’s much better in some ways than ‘traditional’ checking accounts since those have been piling on the fees ever since the passage of Dodd Frank financial reform (as the legislation made the median retail customer less profitable, and banks were trying to recoup their servicing costs).
Banks often charge monthly fees now if you don’t carry a substantial minimum balance. And even my beloved BankDirect — with which I’ve been earning American Airlines miles as my primary checking account for 10 years — has instituted a $12 monthly fee regardless of account balance.
But Bluebird doesn’t charge such fees. And it’s now become a full-fledged checking account, according to American Banker.
American Express (AXP) has just given its checking account alternative, Bluebird, more bank-like checking account features. It has added FDIC insurance, increased the amount of money a customer can place in an account and added physical checkbooks.
The New York credit card company said Bluebird customers who can already deposit checks by snapping a picture from their smartphones, electronically pay billers and send cash to friends, can now place up to $100,000 into their accounts annually. Previously, a customer could only keep $10,000 in an account at any one time.
Apparently Wells Fargo holds Bluebird deposits and that’s how they get FDIC insurance coverage (funds received by Bluebird are moved to Wells Fargo within 24 hours.)
And already some of this new functionality is apparent. When you log into your Bluebird account under the ‘my account’ tab at the top you can now ‘order Bluebird checks’
While the check order page shows prices, checks are free until May 21 (even shipping is free).
50 Bluebird Checks:
$19.94 + $5.94 shipping & handling100 Bluebird Checks:
$26.94 + $6.94 shipping & handlingCheckbook order fees are waived until 05/21/2013. While fees are waived, you are limited to one order.
Note that Bluebird checks require pre-authorization, you enter them online before writing the check and then put the authorization number you receive on the front of the check. And checks for more than $2000 take 1-2 business days to get a pre-authorization number. (Once pre-authorized, funds are removed from available balance, not that Bluebird pays interest but like online billpay there’s no opportunity for a float.)
According to the American Banker piece, they’re also introducing mail-in deposits. Bluebird can also now accept government payments “such as Social Security checks and tax refunds” and indeed when I log into my account I get a popup about depositing my tax refund into Bluebird.
I do think this is very cool, Bluebird is an increasingly valuable product for many in the country… not just for those of us who like funding them with Vanilla Reloads purchased by credit cards. It seems a genuine service to the previously unbanked, and I wish Amex incredible good fortune with this product.
However, as they make it more and more like a checking account and with new ways to add funds into the account, I wonder how long the Vanilla Reload relationship will last. Will American Express need to pay them to make it possible to load funds, when there are other ways to do it? And if that relatonship eventually goes away so too will the ability to “buy money with money” that can so easily be put back into a bank account. Bluebird would ultimately be killed, not by the deal’s overexposure, but by the product’s own usefulness and maturity.
(HT: Milepoint)
I think that’s great and agree on the risk to vanilla. I wish BB worked like real checks and checking accounts, meaning that the balance is unchanged until the check clears (and therefore you know the person received it). It always make me nervous that the money is gone from my account before the other party has received payment. I have found that paying Citibank works well and after testing a few smaller payments directly to my credit card, I feel I can trust that Citi will receive the funds. Also with these I can tell that Citi received the funds online, whereas with an individual only BB would know if the check was cashed.
Just ordered 100 checks gratis. Nice. Hope VR’s continue. Is there a daily VR loading limit wit these changes?
This is great especially if you are writing a check to a spouse and depositing it to a joint account.
Do they still have $5000 deposit per month limit?
Thanks – very useful post. It is great to have the option to mail a check yourself, even by certified mail if desired, to ensure it gets where you want when you want.
I jumped on this last week, set-up the bluebird account, rant to Long’s and Walgreens, the former only carries fake vanilla reload and latter only offers them for cash, so no dice that I’m aware of in honolulu. If anyone knows a way, PLEASE advise (besides amazon payments which I am already using)
I’m about to order some checks. I’m about to get some more vanilla reloads also.
Thanks for the heads up! I’d previously limited my use of BB because I felt nervous about using it in places where a check is usually mailed along with a bill stub. Felt like mailing a separate check would be risky.
This is great…unless it kills VR. But would it really though? The true intent of VR is still that of the original intent of BB – to allow the “unbanked” to turn their income into a deposit. Government checks, paychecks, phone pics of checks, yes this is all good but remember that the “unbanked” often operate on a pure cash system. So VR still fills that niche – allowing cash to be turned into deposits. I think that the end of VR will come when merchants stop allowing CC purchases, not when BB forces them out.
One thing I can’t figure out about Bluebird. With any other online billpay service, bills can be scheduled for future dates. I see a “scheduled transaction” button on BB but can’t figure out a way to avoid the bill to be paid immediately.
Great news! Thanks for the head’s up!
I had one BB check to my sister ‘go missing’. They were pretty good about putting a stop on the check. Then the funds were returned in a couple days then I resent payment. 2nd check arrived on time. Interesting the missing check showed up a couple days before the replacement.
I like the idea of having my own checks to mail out though if I want so thanks for the info!
Given the difficulty of purchasing the VR cards with credit card, I lost interest in using the BB service at all. I bet it will be gone eventually.
Perhaps the most important question: how much per month can you now load onto a Bluebird account with Vanilla Reload cards? It used to be $5000. Has that changed?
BTW, when I quickly looked at the official Bluebird site, I didn’t see any reference to loading with Vanilla Reload. I’m guessing they’re not emphasizing that?
I’m in Los Angeles and have checked out 3 different Walgreens and as many CVC stores, but not a single one stocks the vanilla reload cards…
@max you’re in california, check out the vanilla reload website for grocery stores that look familiar
It’s an interesting development, but all except the truly “unbanked” would be much better off with an online checking account like Ally or Schwab, both of which are fee-free (and even reimburse for ATM fees charged by other banks), offer free checks and mobile check deposit, and are much less restrictive as a general matter (no pre-approval needed to write checks, etc.).
@iahphx, @Danny – As I just tried to apparently load my 11th card for the month and it failed, yes, there is still a $5k per month limit. I had my wife open up her own account for times where we need the overflow, but that’s only happened 1 time. I supposed I could put this last card on hers, but I’ll just hold it for 4/1.
With a check in hand, a user now has bank routing and account numbers. Any idea if a BB holder could thus provide a vendor this info and up and authorize a “pull” from a BB account?
Now we can pay income taxes with these checks as well.
I think VR is in jeopardy. The “unbanked” with load of cash can load the BB with cash at WalMart.
And yet WF no longer lets you use their prepaid cards to load a Bluebird (well, it does, but you have to load it with another WF card…)
I have to say, I’m impressed by what WF is doing to position itself in this space, since I always considered them pretty boring.
20 comments and not a peep about whether or not it’s curently possible to fund this bird with a cc.
As soon as cvs stops selling vrc with CC, bb will be dead to me.
i was hopeful the increase from 60K to 100 K PA meant that the VRC monthly max would also increase, from 5K to 8.333K
#23 John- I fund my Bluebird with Suntrust Delta Skymiles debit card $5,000 maximum per month. It’s worked out great. No issues
The updated Bluebird Member Agreement states you can now add up to $10,000 per calendar month/$100,000 per year.
You can also spend or transfer up to $10,000 per month/$100,000 per year. Maximum account value is limited to $10,000.
Sweet. Thanks. Great tip. Got my free checks.
@Scott, thank you. So you are able to pay bills and accrue delta miles, but are you using the Suntrus debit card to purchase the Vanilla Reload Card and the merchants are allowing the transaction b/c it’s a debit card, not a cc card?
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I hate this card’ twice I made a transfer form my husbands regions debit card to bluebird. Ck balance. It was correct- 15.00 gas at the pump…..they took my entire 100.00 and when I called them they told me call a spec’ dept well tbey were closed’ all weekend..took A week. N then they first led me to believe the store over charged me
Other day 50.00 transf.’5.00 gas…. took entire balance agan now I’m at day three still no deposit of my , money I HAVE A WALMART PAY CARD ACCOUNT FROM WHEN I WORKED THERE, I HAVE NO MONTHLY FEE…..3.00 per load ecni no longer work there , free if u do….. and. Never had a problem for the last 4 years….someone used my card number I called walmart money network told em filled out info over phone n replaced my money
ANYONE CAN GET A WALMART PRE PAID CARD… IT ALSO WORKS THE SAME WAY…. AND I HAD. FROM NETSPEND TO MANGO ACCOUNT NOW U NAME T I TRIED THEM……. WALMART MONEY NETWORK IS BY FAR THE CHEAPEST AND BEST FOR ANYONES NEEDS AND BUDGETS…. NOT T MENTION. HARDLY N E ONE REALLY ACCEPTS AMEX that’s close to me. Gas station don’t accept… u can’t ev w drawl money from the atm.. I tred crdit card…said ror…checking acct… error went to a as sationtht took amex…. got funds fom atm. THIS CARD IS A .headache.. after I get my money they took…I’m cutting up thr card and closing acct online
I would never recommend this card to n e one.
Sabrina s. Saint bernard, louisiana
Cashing a BlueBird Check :
Just a warning to all you BlueBird users. BlueBird checks can not (ironically) be cashed by somebody who does not have a bank account (unless they want to pay a fee at a check cashing shop). I wrote a Bluebird check to to a contractor who does not have a checking account and he visited 3 banks, including BOA, BB&T, and Wells Fargo (where the money ultimately lies) all of which who told him he could not cash the check unless he had an account with their bank. This is despite what the 2 customer service representatives I talked to told me initially. I was also told by them that he could take it to Walmart and cash it there. Walmart told him they would not take a hand written personal check, it had to be printed. That sounded like store policy, so your experience may vary at Walmart. In anycase, I called AMEX BlueBird CS for the 3rd time and spoke with a supervisor who confirmed, you can not cash a Bluebird check (for free) without having a bank account.
I hate this card used it toput gas they toke all my mo eeh took them 4days to put it back my mo. Transfered money to me from her account they closed my account w.ith them because you can’t transfer money from someone else account even with that persons permission, I lost my card someone used it they r still working on it that’s was 2weeks ago the money my mom transfered my the took it out my account and transfered it back to her. With out my permission they. Dis t email or call to let. Me know they were doing that it that they where. Closing the accont I would never use the again
I too had the issue with the $100 being taken out while swiping for gas. I called bluebird and they explained to me that this is their policy and upon receiving the correct charge from the vendor they would refund the money. The rep, then said in order to avoid this prepay pay at the register, he also put the money back on the card for me. I also had the same card misused and BB, promptly canceled, issued me another and replaced the funds.
Thanks for the reminder
@Darnell, when you swipe a credit card at the pump to purchase gasoline, it will pre-authorize anywhere between $1 to $100 to your card until the purchase amount is cleared.
Thanks for the heads up today, totally forgot about the free checks. Is the visa/mc debit card still good to load BB at walmart ATM?
Only have found $200 Visa/makes it a little pricy to use for loads.
CVS here won’t allow any gift card purchase via cc. So stupid on their part, always on the look out for the V card.
Vicki
“Checkbook order fees are waived until 08/13/2013. While fees are waived, you are limited to one order.” direct quote from Bluebird site when I ordered checks 1/2 hour ago. I live in VA and nowhere in my town can I buy any gift card with a credit card. I use Suntrust as one of my banks (debt card 1 dollar = 1 Delta Skymile) and with the debt card I can buy money orders deposit them to another account I have in the Walmart store (Woodforest). The spend amount shows up as a regular purchase to Suntrust. Can also use the debt card to load the Bluebird card with same results. March/April this year I was able to load any amount I wanted to the B/B card, however I think this may have changed. When I return from Germany at the end of Oct this year, I will reload and see what happens.
the bad thing about bluebird is that u cant do a wire transfer from someone elses bank account to your bluebird account which is bullshit my mom tryed to do this 2 my bluebird account and they closed it right on the spot it put me at a burdon but i loved the service but bluebird shouldnt have did that they should have jus deleted it off my account
Could u please send me a phone numbet where i can get in contact with someone my card has been stolen
I do not have a positive opinion of the Bluebird Card.My daughter tried to send me $300 via a Bluebird transfer.I received an email verifying this.However, I could not access this unless I had a card , and it would take two weeks for me to receive one according to customer service.Customer Service advised her to cancel the transaction which she did.The money was still in her account at that time.The money is now gone because she authorized them to send a check in that amount to me.I did not receive this.I will be filing complaints at the state and federal levels.She is not so well-off that she can afford to lose $300.
I just paid my two home mortgages and they were received by both banks in 3 business days. I also paid my water bill. I also use the BB card at costco to earn miles instead of the crappy 2% multi tiered cash back.
i really need your account number where i can make payment by transfer
PLEASE NOTE YOU HAVE A TYPO IN “RELATIONSHIP” in the last paragraph of this story. Paragraph below for reference.
And if that relatonship eventually goes away so too will the ability to “buy money with money” that can so easily be put back into a bank account. Bluebird would ultimately be killed, not by the deal’s overexposure, but by the product’s own usefulness and maturity.
Sounds like this is a great product. I’m going to sign up since it has added all these new features.
Does anyone know if you get a “checking account number” and routing number with the Bluebird account? I have a few bills like gas, electric, car payment, etc. that you can only pay with a checking account. Debit/credit cards don’t work. They want a checking account number and routing number on the website to pay online.
I just signed up online but it doesn’t give me the option to order checks under the my account menu. I haven’t added any funds to the account yet. Could this be the reason?
Amber, the account does come with a routing number and an account number: you can find them both in the direct deposit area.
Utilize the paper checks or their bill pay service. Do not try to pay a bill using your routing/account number directly on the payee’s website as it will most likely result in a returned payment. Had that happen once already.