Divvy Card Review
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Divvy has made waves in the fintech scene in recent years thanks to its forward-thinking expense software. Besides bringing a fresh look at expense reports and budgeting, Divvy does more than just help companies balance the budget. It also offers what is effectively a corporate credit card that provides a unique rewards scheme and benefits package.
While the company doesn’t disclose much in the way of additional fees associated with its card or eligibility requirements on its website, we’ve managed to obtain further details regarding the card’s policies, which we’ll detail in this review.
If you’ve been looking for Divvy credit card reviews, read on through below for the full scoop on the company and its services.
Table of Contents
Divvy Card At A Glance
Divvy doesn’t disclose what types or sizes of businesses are eligible to apply for its services. You’ll first need to sign up for a demo to learn if your company qualifies to use Divvy.
While strict (and public) requirement guidelines aren’t required for corporate credit cards, hopefully, Divvy will become a bit more transparent in the future. And perhaps it will give companies a better idea of whether they are eligible or not — without needing to reach out to Divvy first.
Rewards For Spending
Divvy features a solid rewards system with a unique twist. Depending on how your company spends, Divvy’s rewards scheme could see you saving a fair bit of cash.
Flexible Rewards That Are Based On Payment Frequency
Divvy offers up a unique rewards structure: When you pay off your statements more frequently, you’ll earn rewards at a faster clip.
Divvy has three categories that earn bonus points: restaurants, hotels, and recurring software subscriptions. The amount these categories earn will depend on your payoff schedule.
Earn Up To 7x Rewards With Weekly Payments
If you’re set up to pay off your bill weekly, you’ll receive these earn rates for rewards:
- 7x points on restaurants
- 5x on hotels
- 2x on recurring software subscriptions
- 1.5x on everything else
Earn Up To 4x Rewards With Semi-Monthly Payments
For those set up to pay off statements twice a month, these are the earn rates:
- 4x points on restaurants
- 3x on hotels
- 1.75x on recurring software subscriptions
- 1x on everything else
Earn Up To 2x Rewards With Monthly Payments
If you choose a monthly payoff schedule, expect these earn rates:
- 2x points on restaurants and hotels
- 1.5x on recurring software subscriptions
- 1x on everything else
Receive Credits & Discounts For Signing Up
Beyond the base rewards scheme, Divvy has partnered with a slew of companies to give customers credits and discounts for a variety of services. A few of Divvy’s special offers include:
- Google Ads: $150 off
- Amazon Web Services: $25,000 in credit over two years
- Costco: $50 off becoming a new member
- Verizon Wireless: $50 off a new phone
- TripActions: $5,000 first year signup fee waived
There are several ways to redeem rewards earned through Divvy. However, not all redemption options are made equal — travel redemption can net you almost twice as much value as some of the other options.
Redeem Rewards For Travel
The best way to use rewards earned on Divvy cards is for travel. According to a reward redemption estimate slider on the Divvy website, points are worth 1 cent for every point redeemed — making travel the most valuable redemption method.
Divvy has partnered with TripActions for its travel service. Besides being able to book travel, this service boasts management features that let you view your company’s savings, spending, and travel trends. You may also be able to avoid paying a little extra cash when using this portal — Divvy claims that businesses save 34% on lodgings when booking through its service.
Cash Out Rewards For Gift Cards
Beyond travel, the next best redemption alternative is redeeming your points for gift cards. Divvy’s redemption rate estimator puts a 0.51 cent value per point on gift card redemption. This means that gift card redemption — while not a terrible option — falls quite short of the value you’d get from redeeming points for travel.
Additional Redemption Options
Straight cash — in the form of a statement credit or cashback — is also an option. However, this option is far from economical. According to Divvy’s rewards estimate tool, redeeming statement credit nets you a paltry 0.49 cents for every point you redeem. Cashback is only marginally better; the estimator pegs cashback as being worth 0.52 cents for every redeemed point.
Because Divvy offers a full expense and budgeting suite, it provides more than just a corporate credit card. You’ll be able to receive a number of benefits by setting your company up on this platform — many of them unique to Divvy itself.
Divvy markets that you can “say goodbye to expense reports,” thanks to its automatic expense reporting features. Besides automatically collecting transaction details in real-time, Divvy also allows users to take pictures of receipts.
To help manage your company’s spending, Divvy enables you to set budgets by team, project, event, or any other category of your choosing. Included with these budgeting tools is the option to set employee spending limits — potentially limiting overspending. You can also view and edit your budgets in real-time over the web and on Divvy’s mobile apps.
Virtual cards enable you to generate a 16-digit credit card number that is tied to your Divvy account. These numbers can then be used for payments across the internet.
Because you won’t be using your real credit card number, these numbers provide better security in case of a data breach or when used on a compromised website. You can also set a spending limit on a per-card basis — so merchants can’t overcharge — as well as forced expiration dates and locking a number to a certain merchant.
Sending & Receiving Funds
According to Divvy, its sending and receiving features are “like Venmo for your business.” Through Divvy’s interface, you’ll be able to send and receive cash at the push of a button.
Those in charge of budgets can also send recurring monthly payments to their team. This way, the team can always have access to the funds they need every month.
On top of all of this, administrators can view how much money someone has requested, their monthly allotment, and how they spend the money they receive.
Through Divvy, you’ll be able to pay invoices and bills without the need for writing physical checks or buying expensive software. You’ll simply need to input a vendor and add a payment — Divvy will take care of everything else.
Qualified customers may be eligible to have a “Flex Limit” available, which enables Divvy to pay your vendor first and then you pay Divvy on a later date. Paying with these plans does have a set fee (between 0.9% and 1.9%) and can be repaid over one, two, or three months.
Flexible Credit Line
Divvy claims that your credit line will grow as your business grows. The company also notes that it makes it easy for businesses to access the credit needed, regardless of the business’s size. How Divvy makes this all work, however, isn’t exactly clear.
Divvy reports your activity to the Small Business Financial Exchange, which is a nonprofit trade association focused on gathering and protecting small business payment data in the US. While the SBFE is not a credit bureau itself, having your activity reported can still boost your business’s credit score. Improving your business credit score can be helpful when applying for loans or other sources of credit down the line.
There are several security features that Divvy likes to market, including:
- Meeting the Payment Card Industry Data Security Standard
- Multi-factor authentication for all administrators who can access sensitive company information
- Android fingerprint scanning and Apple Touch/Face ID support for the Divvy mobile apps
Other Mastercard Benefits
Divvy’s card comes bundled with a few other standard Mastercard benefits, including:
- Car rental insurance
- MasterAssist medical services
- 24-hour support
Rates & Fees
Divvy promises that its platform is “completely free” for companies and their employees. And while Divvy doesn’t publicly reveal any additional fees you may come across, we’ve managed to get more information from the company on the matter.
No Upfront Fees
You won’t be charged any sort of upfront fees with Divvy, such as an annual fee or fees for additional employee cards. Instead, the company earns its money from interchange fees charged to merchants whenever someone makes a purchase on a Divvy card.
That means Divvy could be a cheaper corporate card than a more traditional route — American Express, for example, charges several hundred dollars annually for some of its corporate cards.
Foreign Transaction Fees
While it’s true that Divvy doesn’t charge any upfront fees, if you’re a frequent business traveler, you should know that Divvy does charge foreign transaction fees. Here are the fees you’ll face:
- Cross Border Fees: 0.90% of total transaction volume when the account user is US-based, 0.20% when the account is Canada-based
- Currency Conversion Fees: 0.20% of total transaction volume regardless of where the account user is based
Late Payment Fees
Late payments will incur a fee of 2.99% or $38, whichever is greater.
No Public Disclosure Of Fees
Divvy does not publicly disclose its foreign transaction fees or late payment fees on its website. This is unfortunate, and we’d prefer that the company publicly list these fees, but the fact that Divvy disclosed these fees to us does indicate some degree of transparency.
Is The Divvy Card Right For You?
Divvy is more than just a corporate credit card, and it promises some great tools to help almost any company on the market. It boasts a rewards scheme that can save a fair bit of cash, tools to help streamline expenses, and a flexible credit line. Combine this with a total lack of interest charged to card users, and this card and its platform appear quite appealing.
Between its nifty rewards scheme, slick software, solid plugins, and unique benefits, Divvy is an excellent option for plenty of companies. While we wish Divvy were more transparent to potential customers regarding its eligibility requirements, the fact that the company was willing to disclose its additional fees to us (and, thereby, to you) means that we’re happy to give Divvy’s fintech services our recommendation and, accordingly, boost the company’s score to 4 out of 5 stars.
You might want to apply if…
- You want a corporate card that incorporates services beyond a traditional credit card
- Your company’s spending habits match Divvy’s bonus categories (restaurants, hotels, and software subscriptions)
- You need a corporate card without an annual fee
You might want to look for a different card if…
- You won’t be able to take advantage of Divvy’s rewards scheme
- You don’t need fancy software bundled in with your corporate card
- You’d prefer to work with a company that is more open about fees and eligibility
To learn more about how we score our reviews, see our Business Credit Card Rating Criteria.