Rejection of Tide Debit card by Merchants


#1

A number of merchants seems to reject Tide cards, among these includes Uber and even Braintree via Chargebee. In these circumstances I end up having to use Monzo, which then means having to claim back via expenses. Why are some rejecting your card?


#2

Hi @UnifiedVU!
I can confirm that certain transportation services, such as Uber, do not currently accept the Tide card due to its prepaid nature. Apologies for the inconvenience, we’ll be sure to let you know if this changes in the future :slight_smile:


#3

What do you mean prepaid card? Is this really what Tide is ?


#4

Why does Tide not provide a proper debit card?

Do you have the plans to do so anytime soon?

Amelu ltd


#5

Thanks for your questions, @UnifiedVU and @Amelu.

The Tide card is indeed prepaid, but in many ways works like a debit card. However, we know that a small number of merchants are unable to process payments from prepaid cards, and so we’re exploring alternative cards that we can issue to our members which will work with all merchants.

We don’t yet have a timeframe for the new cards and will announce any more information when we have it - but rest assured we’re aware of the issue, and are looking to resolve it.


#6

What’s the timeline to become a proper bank and move away from using third party card providers? Bit concerned as George is stepping down as well.


#7

Good question! Whilst we’re not currently planning to become a bank or apply for a banking license, we were recently granted our E-money license from the FCA - which will give us more control over the services we provide, particularly on account limits and payment processing times, as well as a more stable service with less outages. We’re working hard behind the scenes to make this happen.

You might also find it interesting to read George’s explanation about why we’re not currently planning to become a bank here.

Hope this helps!


#8

Would be interesting to watch how you compete with others who are getting banking licenses for business banking. Operating on someone else’s platform cannot be a long term strategy if you want to compete in this market. Will pick up a chat with George privately. Over and out…


#9

While many sought full banking status, now electronic money institutions can directly connect to the Faster Payments Scheme that is one primary need resolved.


#10

My understanding is that Tide is doing this through another party. Is this not the case?


#11

Yes, you are right. I think TransferWise is the only EMI to join FPS so far.


#12

Tide is not even a real bank. Tide is holding an e-money license and they are using PrePaid Technologies - which is also just holding an e-money license - for handling the payments and the issuance on the card. You can read this on the back of your card, it will read “This card is issued by PrePay Technologies”. A lot of Payment Service Providers provide BIN checks and they will not allow such cards.

Basically Tide is the Monese of business banking, They both use PrePaid Technologies Ltd in the background. To be able to accept faster payments, they are using a sponsored Barclays connection.

Not sure if there are any real neo banks for business out there already. For consumers (and sole traders), Monzo is a great alternative.


#13

Hi @Panda,

Thank you for taking the time to share you feedback.

As our founder George explained on another community post - the major significant functional differences vs a bank are only that we don’t support cheques (which are rarely used nowadays) and we’re not covered by the FSCS (which is irrelevant because we don’t take risks with members’ money, unlike a bank).

As you know, we were recently granted our E-money license from the FCA. This will give us more control over the services we provide, but also more stable services with less outages. The team is working hard behind the scenes to make this happen and we’ll be sure to update this thread when we’ve some news.

Let us know if you’ve any other question, we’re happy to help.

Valentine


#14

Hi Valentine,

You write that you don’t take risks with clients money - which is indeed one of the main features of being an electronic money institution. But what about the bank where you hold your deposits (Barclays)? Do they take risks with the money in your ‘clients money account’?

And what happens if Barclays would suddenly go bankrupt? Are e-money providers protected under the FSCS scheme? And if yes, would this be only up-to EUR 100.000 or equivalent?

In other words - if something would happen to Barclays, would we as Tide users still be able to access our funds?


#15

Hi @Panda,

Our members’ money is held in a regulated, ring-fenced account. Which means our members’ funds are never moved, invested or lent to anyone else. You can learn more about our safety and security here: tide.co/safety-security.

In the unlikely event of Barclays’ insolvency, our members’ funds would be returned to them.

Let me know if you’ve other questions.

Valentine


#16

Hi,

I’ve started seeing the same problem with merchants rejecting the card. I’ve moved my business mainly to use Tide, but this seems like a fairly major issue and I may have to change everything back.

Will Tide be changing to use “real” debit cards?

I did notice Starling have recently launched business bank accounts (inc. debit card), but I’d like to avoid migrating all my payments and DD’s again if real cards are on the Tide roadmap…


#17

Hi Chris,

Thanks for getting in touch.

I’m afraid we don’t have any immediate plans to offer debit cards.

Can I ask what merchants you’re having difficulties with? Alternatively, you can always reach out to our Help team in the app to discuss further.

Thanks,
Valentine


#18

Thanks @Valentine_at_Tide. Whilst most of the merchants I’ve used haven’t had issues, one of the companies I use for handling domains is having issues.

I’ll get in touch via the app to see if this particular one can be resolved, but it is a little off-putting if I can’t be confident of using the card everywhere I would normally be able to use a debit/credit card.


#19

Hi @cblunt

Thanks for getting back to us.

Unfortunately as Valentine said before, we don’t have plans for a debit card. I understand your frustration.

I hope the Help team were able to provide more information for you.

Thanks,
Felicity


#20

Hi. Yep me too on this issue. So far for me it’s been Uber, BT, 3, Carphone Warehouse, Halifax Insurance, Apple, all the train companies, Oyster/tfl, WH Smith, and pretty much every restaurant I have been to. It really is a huge issue for business expenses