Divvy Card Review

Need help finding a lender?

Get matched with offers at Lendio

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.

However, questionable marketing tactics may make Divvy a potentially iffy company to work with. The company fails to disclose if there are any additional fees associated with its card, and no clear eligibility requirements are evident on the Divvy website.

For the whole picture on Divvy, read on through below!

Eligibility

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 necessary 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.

Divvy Card At A Glance

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: $5,000 in credit over one year
• Costco: $50 off becoming a new member
• Verizon Wireless: $50 off a new phone
• TripActions: $5,000 first year signup fee waived

Redeeming Rewards

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 primary method you’ll want to redeem the rewards your company has earned while using 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 0.7 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 cash back — is also an option. However, this option is far from economical. According to Divvy’s rewards estimate tool, redeeming statement credit nets you 0.54 cents for every point you redeem. Cash back is even more paltry; the estimator pegs cash back as being worth 0.52 cents for every redeemed point.

Card Benefits

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.

Automatic Expenses

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.

Budgeting Tools

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

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.

Bill Pay

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.

Credit Reporting

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.

Security Features

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. On the flip side, Divvy doesn’t publicly reveal any additional fees you may come across when using its products and services.

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.

No Public Disclosure Of Fees

Divvy does not publicly disclose other fees (such as late payment or foreign transaction ones). As such, it is difficult to accurately asses how costly Divvy might be for your company. For instance, if your company requires frequent travel abroad, Divvy may not be the best option.

Divvy failed to respond for comment when asked about additional fees. Its system is certainly set up to charge customers fees (based on a help center article), and at least one customer has alleged on G2.com that Divvy’s card does have foreign transaction fees.

I am personally not impressed with Divvy’s caginess around fees. It’s certainly possible that Divvy has a good policy regarding its fee structure and truly lacks any sort of foreign transaction or late payment fees. However, the lack of upfront public clarity on this topic makes me question the company’s integrity as a whole.

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. Based on Divvy’s marketing, this card and its platform seem very appealing. However, its what Divvy doesn’t market that makes us pause on recommending this card.

If Divvy made a bit more of an effort to provide clarity to potential customers, then this could be a platform and card Merchant Maverick recommends. Between a nifty rewards scheme, slick software, solid plugins, and unique benefits, Divvy sounds like an excellent option for plenty of companies. We’re just not sure if Divvy truly values its customers based on limited public transparency regarding additional fees and eligibility requirements.

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

⭐️ Promo: Get 50,000 Bonus Points From Brex ⭐️

Brex Corporate Card for Startups	Apply Now Read our Review

Brex Corporate Card For Startups has a great rating and comes with $0 in annual fees and 50,000 points as a welcome offer today. No credit check required. Apply Now At Brex.

⭐️ Promo: Get 50,000 Bonus Points From Brex ⭐️

Brex Corporate Card for Startups	Apply Now Read our Review

Brex Corporate Card For Startups has a great rating and comes with $0 in annual fees and 50,000 points as a welcome offer today. No credit check required. Apply Now At Brex.

Read Next

Looking For The Best Merchant Services? Try These 8 Small Business Credit Card Payment Processing Companies In 2021

Read More

Jan 6, 2021 328 Filed under: Credit Card Processing

Need A Retail POS System For Your Small Business? These 7 Great Solutions Can Solve Your Store’s Woes

Read More

Jan 8, 2021 6 Filed under: Point of Sale