Slash cards are smart virtual cards you can set spend limits on and share with friends.
People primarily use them to automatically split subscription costs with friends and avoid getting overcharged after starting free trials. We have, however, seen them being used for a variety of other reasons.
But what exactly are they though? Debit cards? Credit cards? Something in between?
We don’t extend a line of credit, look at your credit score, or affect your credit score in any way, so we are by no means a credit card. We also don’t take money directly from your checking account when you make a transaction, so we aren’t a debit card either.
Slash cards act kind of like debit cards, but are different in that they only charge you once transactions are authorized, and allow you to split costs with friends before the fact.
Under the hood, we temporarily float the cost of every transaction you make using Slash. Once a transaction is finalized, however, we trigger an **ACH **payment from all the card’s co-owners to ourselves, effectively mimicking a debit card’s behavior.