Drop Manufactured Spending Shutdown
A couple of weeks ago a new app came to market called Drop. (You can find our full breakdown and directions on how to sign-up here.) Launched by a Canadian company, Drop aims to make your everyday purchases more rewarding. You simply choose which 5 stores you will earn points at, link your cards and they do the rest.
If only life were that easy. A couple of weeks ago after we wrote about Drop, I created an account and linked my cards to Drop. I do a fair amount of legitimate spending and started to rack up some points. Many of you signed up as well and I earned $1 worth of points per referral.
Eventually the points added up to enough where I could redeem for a Best Buy gift card. It was easy enough in the app to choose to redeem my points, but then nothing happened. In addition to my gift cards not being issued I also stopped earning points as well. Uh-oh.
Instead of immediately calling foul, I decided to reach out to Drop. Here is what they had to say:
We’ve recently been hit with an influx of users who have been using manufactured spending to earn a large amount of points and then redeeming large quantities of gift cards. Our engineering team has flagged these users who we suspect have been using manufactured spending due to repeated purchases of the same amount at the same retailers. This may be why some users are not seeing their points show up and are receiving the “Error” message when trying to redeem.
We didn’t anticipate for “churning”/manufacturing spending to happen, and as a result, there’s been a backlog of gift card orders. Right now our support team is working hard to ensure that points for redemptions are not coming from manufactured spending and manually sending out gift cards.
As part of this email I was also informed that my account had been caught up in their sweep due to having a decent number of points. I was also told that it was released as well since I didn’t perform any manufactured spending.
Thoughts & Takeaways
I know many of you had similar issues to me and thus I felt this was worth sharing. Based on this correspondence here are my takeaways:
- Drop isn’t going to work for manufactured spending, but as long as they deliver the promised payouts for regular spending it can be a great program for many.
- If you have found that your points and redemptions aren’t going through and you haven’t manufactured spend, contact them through the app. They responded to my message within 24 hours.
- Be patient for now with gift card redemptions. They are being processed manually and can take a few days.
- We still need to be proactive and make sure that Drop is paying out on normal purchases as promised. It seems like they will, but I will continue to follow up and bring you any developments.
For the manufactured spending crowd Drop seemed too good to be true and it turned out to be. My guess is that a small number of users did such a huge volume that they saw it almost right away and shut it down. Hopefully they will continue to offer generous rewards for everyday purchases. Only time will tell.
Have you had issues with Drop? Share your experiences in the comments.