Apparently, Revolution Money Exchange is the newest money exchange program to hit the net. It's biggest competition is the leader in the industry - Paypal. But they're also up against other big dogs like Google Checkout and others.

Does Revolution Money Exchange have the potential to replace Paypal? I don't know, all I know is I love what I see so far! You get $25 for signing up and get $10 for each friend or family member that signs up because of your referral! Not only can do you already see the $25 in your account minutes after just signing up minutes...hundreds (maybe thousands) of others have already transfered the money into their bank accounts! My guess is they've used it for gas, with the way prices are climbing these days.

When I was first sent an email by a friend to join Revolution Money Exchange, since I hadn't heard of it before, I was curios about what is was and if it was legit. Sure the promise of $25 cash was intriguing, so I began the signup process (a friend sent me the link so it should be trustworthy, right?), but stopped myself when they began asking for sensitive information, like my social security number.

I began researching the company and discovered it was Founded by Steve Case (owner of AOL) and launched in November of 2007 - you can read about it in the article in USA Today. Interesting.

So as I kept researching, and my questions began to get answered, I knew Revolution Money Exchange was a legit company and a legit way to actually really receive $25 just for signing up! But you need to act quickly, because the offer expires May 15, 2008.

Here's what I discovered...

Revolution Money Exchange is, in factbacked by a 100% legitimate US Bank. The accounts are backed by First Bank & Trust, Brookings, South Dakota - and they are Member FDIC insured. And because they are a related to a bank, all transactions (other than checks issued) are conducted similarly with ACH.

Revolution Money Exchange made it's big online debut in December of 2007, according to word on the net, via Facebook. With the promise to deliver $25 Cash just for opening up an account with them, it got a lot of attention - both positive and negative.

People began to question their legitimacy - especially against big names like Paypal. Is Revolution Money Exchange legit? (Well, we've discovered they are.)

The following video (to the right) on Revolution Money Exchange briefly and simply describes how easy it is to make $25 CASH just for signing up, and then make even more money online from home by referring their services to others!

Some find this questionable - how are they able to pay us $25 for creating a new account, plus pay us $10 for referring others?

All they are doing is what banks do all the time - Customer Acquistion Costs! Don't believe me?...just check out the link below! Banks spend as much as $3,500 on average to acquire a new customer.

But don't think you can get rich off of this promotion - Revolution Money Exchange does put a cap on how much you can earn - up to $500 in referral dollars per calendar year, per person/account. But, in my opinion, an extra $500 in my pocket is nothing to sneeze at.

Just a note, you have to sign up by May 15, 2008 to get the $25 - I'm not sure if the referral dollars have the same date. But I have found another way that you can supposedly make more than $500.

Onto the next big question - can they compete with Paypal?

From what I've seen so far, if enough people create accounts and begin to use Revolution Money Exchange, then yes, I believe they can blow Paypal out of the water - as far as a US online money exchange program is concerned. But that's only if they keep up with not charging fees.

Here's why...

(quickly watch the following video and then continue reading for more info)

So what sets Revoultion Money Exchange aside from the rest?

I would have to say their fees. If you've ever sold an item on eBay or received a payment from someone on Paypal or Google Checkout, I'm sure you'd agree. It's not a huge amount, but why pay fees when you can now do the transaction securely with Revolution Money Exchange for free with other US (for now) only buyers?

If you take a look at their fee schedule (click last pic to the right), you will realize it should look a lot like your banking fees. It's almost like a free online checking account.

Paypal charges you to receive money, but they allow you to send for free (check out their fee schedule to the right). Depending on whether you are a Personal or Premiere/Business member, you can pay anywhere from 1.9% - 4.9% + 30 cents, per transaction to receive a payment.

It will be interesting to see if Revolution Money Exchange remains fee free. If they do, it should keep them in the running among US money traders. I'm not sure if they have plans on expanding internationally, but if they do, it'd be interesting to see how it would stir things up.

Paypal does have the upper hand in that they allow international money exchange. They also offer various account types and allow you to accept credit/debit card payments. Speaking of which, I think a lot of people would also like to see a debit/credit card like Paypal offers added (at least I know I would) to Revolution Money Exchange. Then you wouldn't necessarily need a traditional hometown bank. You could do most of your transactions online from anywhere. Just pay the fee to have a check mailed to your mailing address if you need money. But herein lies a problem...

Both companies have dollar limits.

In Paypal's defense I don't believe they limit the amount of money you can have in your account at any given time. I do know with Paypal Personal accounts you can't withdraw more than $500 per month without verifying and/or upgrading to Premiere. Once a Premiere/Business member, I don't believe there's a maximum dollar withdrawl amount (check Paypal for more on that).

Revolution Money Exchange does have some limits that I'm not too crazy about. They don't allow you to withdraw more than $1000/day or transfer no more than $2500 a month. I'm not sure why they have that limit, but I'm hoping they lift that limit in the future. I like knowing I have money somewhere for safe keeping. Granted, it doesn't acru interest, but it still offers peace of mind. Although, I guess it's for the better since it's better to put the money somewhere that it can gain interest.

Since eBay now owns Paypal, and eBay requires you to have a Paypal account to sell, and many sellers accept Paypal Only, I believe there will be no escaping Paypal for a long time. Unless eBay decides to add Money Exchange to it's list of accepted payment methods. Which they may, because they currently accept bank to bank transfers, and that's basically what this service is. It would be eBay's saving grace since a lot of sellers are skipping town on them because of fees, upcoming changes in May, and many other reasons. There's even mention of boycotting eBay on their message board because of how drastic some believe these changes will be.

Apparently, there's also a Paypal policy change coming in May as well that makes myself (and others) question Paypal seller protection.

Apparently many have had problems with Paypal! The video to the right tells how this Paypal seller experiences horrible service with Paypal! If you actually read some of the comments on the videos page on YouTube, there are hundreds of more complaints.

So who will win the rat race?

I don't know. All I know is, I got my $25 already, so if you're wondering whether or not to sign up with Revolution Money Exchange and it's before May 16th, 2008 - I suggest you sign up right now so you get your free $25 as well.

Just be sure to review the Terms and Conditions before you make a definite decision.