Paying fees to participate in an online prize pool is (soon) over. Lydia announced the implementation of a dedicated IBAN on her prize pools, to participate by transfer and no longer by bank card.
Is it customary to give a group gift when one of your friends has a birthday? Are you planning a weekend and want to pool expenses? You may be used to using an online fundraiser for this type of event. And every time, it’s the same thing: when paying with your bank card, you are charged transaction fees, in addition to the amount of your participation.
A new commission-free method for funding prize pools
But good news has arrived for Lydia users. The next prize pool that you will create soon on Lydia will display a dedicated IBAN, to allow those who prefer to participate by bank transfer. Unlike the card, and as for participations made via the application, it is commission-free. 100% of the amount will be credited to the organizer’s prize pool. And if it is an instant transfer (which all banks should offer for free from now on), the payment of the participation will be immediate, like with a card, announces the brand in a press release, which also explains that this IBAN is unique and can only be used to credit the prize pool. It will be destroyed when the prize pool is closed.
Clearly, participants will now be able to enter the IBAN of the prize pool and make a transfer from their bank account, all for free. Only problem, in many banks, entering a new IBAN requires a waiting period, approximately 48 hours before you can use it. This is called a timeout period before the first transfer. This solution is, for example, used by BNP Paribas (24 hours), Crdit Agricole (duration varies depending on the fund), or even Crdit Mutuel Arka (only on the website).
As a reminder, the principle of the online prize pool is simple: it is a kind of ephemeral electronic account, into which several people can deposit money. The objective is to collect the amount necessary to finance a private project: an event (party, weekend, trip, etc.), a gift (birthday, retirement, etc.).
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