Fin-tech company Zero announced on Tuesday, July 30, the public release of Zerocard, a credit card providing a “debit-style experience” issued by WebBank and backed by Mastercard. Zerocard aims to be an alternative to credit cards from big banks that make money off cardholders who fall into debt. “We know we’re going to make less in the short-term, but we believe that building a better product in the long-term is going to pay dividends in other ways,” Bryce Galen, founder and CEO of Zero, tells CNBC Make It . Zerocard is a credit card, but provides a “debit-style experience” and 1% to 3% cash-back rewards for cardholders. You have to have a Zero checking account in order to qualify for the credit card, which allows you to use the unique debit-style feature. The card gives you all the benefits of a traditional credit card — access to a line of credit, cash-back program and a chance to build credit — while encouraging you to spend within your means thanks to the debit feature. This debit-style feature can be turned on and off at anytime via the Zero app. When this feature is turned on, the credit limit of your Zerocard is equal to the amount in your Zero checking account: a $100 checking account balance gives you a $100 credit limit. This is similar to a secured card, which typically requires a $200 cash deposit that becomes your line of credit. This feature also comes with autopay, which automatically deducts your Zerocard balance from your Zero checking account on your due date. Zerocard holders also have the option to turn off the debit-style feature and simply use the card like a traditional credit card. When the debit-style feature is turned off, Zerocard works similar to a charge card with […]

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