Chime SpotMe Program Review 2021

It’s time for a Chime SpotMe program review, updated for 2021!

In 2018, Americans paid $34 billion in overdraft fees on top of the $32 billion in charges reflected in the draft itself. Nobody can deny the dislike we all share for overdraft charges.

As a result, the SpotMe program offers an untroubled shoulder to lean on when you need extra cash. It eliminates the overdraft fees and gives you an untroubled alternative to traditional banks, that have been robbing you for years.

Chime is not like traditional banks that are only concerned with making profits. Do not be alarmed, there are no hidden fees or ulterior motives. Just some terms that are worth following.

About Chime

Chime Credit Builder Card: What It Is and How It Works | GOBankingRates

Before we discuss the SpotMe program, let’s first take a look at Chime as a whole.

The debit card service SpotMe is from Bancorp Bank! This debit card service is accepted everywhere the Visa debit cards are accepted. Chime is a company that only operates online and offers checking and savings accounts through partnerships with banks.

The Bancorp provides private banking and technology options to meet the needs of nonbank companies.

According to Nilson Report April, they are the #1 issuer of prepaid cards and the 8th largest issuer of debit cards in the U.S.

It’s quite likely that you’ve never heard of The Bancorp bank and this is on purpose, as the bank values the companies it works with and their goals above all else.

Due to Chime and their SpotMe program, there have been many lives saved since forever. This is the next best thing to a slice of bread.

What is Chime SpotMe?

SpotMe 101: How to use SpotMe like a Pro | Chime

Chime’s program SpotMe allows members to overdraft their accounts without paying any fees.

If your account is zero, they issue you a cash advance. Members can make purchases with their debit cards with no overdraft fees attached.

The overdraft amount will be deducted from your next deposit.

As a general rule, SpotMe allows you to make purchases up to $100 overdrawing your account without a $20 overdraft fee.

Related: Do Credit Cards Have Routing Numbers?

Who are Eligible For Chime SpotMe Program?

With Chime’s no-fee overdraft feature, you’ll be able to overdraw up to $20 by using your debit card just 31 days before the drawing date. To be eligible, you’ll need to receive a $500 direct deposit 31 days before the drawing day.

Maximum Overdraw With The SpotMe Program

The Chime SpotMe program also offers an overdraft of up to $100 if you direct deposit $500, if you so please. As previously mentioned, a direct deposit of $500 gives you access to a $20 chargeless overdraft that applies to debit cards.

It’s important to note that a thorough review of your Chime Account history, direct deposit history, and spending activities, as well as other risk-related factors, will be conducted.

It’s noteworthy that Chime’s mobile app will display your overdraft limit at all times. Chime can increase or lower your overdraft limit at any time. If you accrue additional charges beyond your overdraft limit, you will be notified accordingly.

Related: Does Aldi Accept Credit Cards?

Meet SpotMe: Overdraft fee-free | Chime
Source: Chime

How Does SpotMe Work?

If you forgot there is a SpotMe program, don’t worry. Chime will remind you if you have a direct deposit of up to $500.

For $500, you will be able to get a free overdraft of $20. However, many other aspects, like account activity and history, will be taken into account to determine how much overdraft you can get.

You will be spotted up to your limit whenever you make a debit purchase over your balance via Chime SpotMe. However, this can only happen when you have enrolled in the Chime SpotMe program.

The negative balance will be applied to the next deposit you make, and you will be able to choose to ‘pay it forward’.

It will, however, not alter your eligibility for the SpotMe program if you choose not to comply.

What Can You Buy With Chime SpotMe?

The Chime SpotMe program only covers debit card purchases.

Meaning, it is not possible to overdraft using SpotMe by Chime for ATM withdrawals, PayFriends transfers, ACH transfers (including direct debits and Venmo or Square Cash), or Chime Checkbook transactions.

Related: Can You Use Debit Card on Steam?

Do I Need to Link My Savings Account to Chime SpotMe?

With Chime, you do not have to link your savings account to be approved for an overdraft, unlike traditional banks.

You’ll need to maintain a direct deposit of $500 within the past month in order to qualify for an overdraft. But behind the scenes, your debit card is issued by Bancorp, which means you cannot escape the account.

How do I enroll in the SpotMe Program?

If you are eligible for SpotMe, you can find out by opening your Chime app’s Settings tab. Make sure you’re using the latest version of the app. Once you’ve agreed to SpotMe’s Terms and Conditions, you’re enrolled.

When that happens, it will be possible to overdraw your account up to your limit with no overdraft fee.

Pros and Cons of Chime SpotMe Program

With SpotMe, the pros heavily outweigh the cons. Both are listed below:

  • No overdraft fee. SpotMe will save you $35 in overdraft fees.
  • It does not require your bank account to be linked.
  • $20 to $100 in monthly overdrafts.
  • Repayment is on the next deposit.

The cons of the SpotMe program are:

  • An online-only account without access to physical branches. Tech-averse individuals might find this feature difficult.
  • The overdraft applies only to debit card purchases. That is far too simple for robust users.
  • Direct deposits are the only way to deposit funds; cash deposits may be more difficult.

Differences Between Chime SpotMe and other Overdraft Programs

Comparison ElementsChime SpotMe OverdraftOverdraft Protection
FeesNoneUp to $35.
Overdraft amount$20 to $100 monthlyUp to $10,000
Number of overdrafts allowedUnlimited as long as you remain within the monthly limitUp to 7 overdraft
Link Second accountNot requiredYes (unless you opt for overdraft line of credit)
Type of overdrafts allowedDebit card onlyAny checking account transaction
RepaymentOn the next depositASAP or an additional amount up to $35 may apply every five business days if the account remains overdrawn.

Final Thoughts

If you calculate the overdraft charge for a year, you will see how much money your Chime SpotMe program has saved you. Their services are geared towards your debit card purchases only, but this is still better than nothing.

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