Join over 5,000 people who are subscribed to receive a once daily email with all of our posts. Never miss out! Click here to subscribe.
Learn how to maximize your points & miles! Join Our Facebook Group!
Drop Spending App – Is It a Scam?
In my opinion, it is time to Drop the new Drop spending app. Why? Because they are taking your data and making money, but are refusing to pay customers for that data. Or at least they are refusing to pay me and some others. Is it a scam? I wouldn’t say that, but I’ll let you decide based on my experience.
In case you are just joining us:
- Drop launched with generous cashback offers for stores like Amazon and Walmart.
- To get this cashback you link your credit card accounts to their service. They get to mine your transaction data which is how they make money.
- Quickly after launch Drop began locking some member accounts citing “manufactured spending”.
- They quietly changed their terms after the fact to exclude business purchases and manufactured spending.
- Drop used these new terms to deny people their money.
And that is what happened to me. A few weeks ago Drop reached out to me to clarify their position on manufactured spending when I asked why my account was locked. Since I had done a grand total of $0 of manufactured spending, I requested for my account to be unlocked and was told by Drop that my account had been unflagged.
I’d like to apologize for this inconvenience. We’ve un-flagged your account and I’ve let our support team know to send you your Best Buy gift cards ASAP. Since it’s a manual process, this may take a few days. Again, I’m so sorry for this situation and are working hard to ensure all valid users receive their points and rewards by the end of the month.
Unfortunately those gift cards never came and I noticed my account stopped earning any points. They kept mining my data and had told me I was going to receive my points but that simply never happened. Eventually I followed up with Drop’s representative and was told:
Last week I unflagged you, but our system automatically re-flags users who are suspected to be engaging in manufactured spending or have a corporate card connected for business spending purposes. We’re unfortunately unable to award points and allow redemptions on these purchases as Drop aims to reward the every day spending of our users.
As you can see, they are hiding behind their new terms which were not in effect when I earned those points. While I didn’t manufacture spend, I did have business cards (not corporate) linked to the account. There is no way to separate out business accounts from personal accounts in their system and they acknowledge this. Additionally a few of the points were earned from referrals. They are not paying out on any of it despite the fact that all points were earned before they mysteriously changed their terms in the middle of the night.
Drop’s rep did say how I could fix my account going forward.
At the moment, there’s nothing I can do to prevent our system from flagging you again each time I unflag you. The only fix is to unlink any corporate and manufactured spending cards from your Drop account. Our system will recognize that you are engaging in every day spending and allow you to earn points on those transactions. You’ll also be able to redeem rewards.
Taking this advice, I decided to unlink all of my accounts from Drop and then request that my account be unflagged so I could redeem the points I had accumulated. With no new transactions there was no way for my account to get flagged again.
After de-linking my accounts I emailed this rep back several times to unflag and ask that I be allowed to redeem my points and this is what I received.
Our offers are subject to the terms of partnerships we’ve agreed to with brands and retailers and as a result, certain manufactured spending including, but not limited to, repeat purchases, high-value purchases, purchases of gift cards, and purchases made for business or corporate purposes, may not, at our sole discretion, be considered eligible for Drop points. Our ToS has always reflected that users may redeem points in accordance with conditions that we may determine at any time and our ToS now specifically address some of the manufactured spending we’ve seen in the last few weeks.As you’re aware, Drop is designed to reward everyday consumers for spending with brands and retailers they know and love and we’ll continue to ensure our users are rewarded as long as they’re not jeopardizing our relationships with our partners. Manufactured spending, like the purchase of multiple high value gift cards, only ruins the opportunity for the everyday consumer to be rewarded for spending their hard earned money.
As you can see from the language above, this company thinks they can do whatever they want whenever they feel like it. In other words, if you earn too many points they can just not pay out on them. Is this legal? I don’t know because I am not a lawyer.
What I do know is that they took my data and money and ran with it. Is Drop App a scam? Once again, I wouldn’t say that but they certainly didn’t deliver on any level for me. I’ll let their own words stand for what kind of company they are.
I sincerely hope the banks stop working with this company which at best (in my opinion) is dishonest given their sudden changing of the terms, their interpretation of those terms and their misleading exchanges with me. At this point I am out a couple of hundred dollars and they have my data. A lesson learned I suppose and a mistake I hope others don’t make.
Based on my personal experience I would say it’s time to DROP DROP.
This post may contain referral, affiliate or sponsor links that provide Miles to Memories compensation. Thank you for your support.