Consumers weary of shuffling through various credit cards to get the best rewards could get relief from a new service that automates the selection of the proper card.
Consumers with multiple rewards cards can pay Wallaby Financial Inc. $50 a year to pick the best for each purchase, maximizing rewards based on the cardholder's preferences, according to a June 26 press release from the Los Angeles-based vendor.
Wallaby doesn't issue any credit — its card detects which linked account offers the best deal based on issuers' programs offering double or triple points in certain merchandise categories or during a limited time period. Each time the cardholder swipes the card, Wallaby determines which linked account offers the best rewards and "forwards" the transaction to that card.
The company may be overthinking the problem, however.
"Heavy credit card rewards users have their strategies for which card to use for which rewards well in hand," Brian Riley, research director with TowerGroup, said in an interview. "Most people who want to maximize rewards don't carry that many cards, and they don't need an algorithm to know which one to use for travel or gas."
Wallaby's founder, Matthew Goldman, describes the service as a "flexible, cloud-based wallet" accepted at all retailers, according to a press release. Goldman is a former Green Dot Corp. executive.
Consumers manage their account from a mobile application. Wallaby is one of several startups funded by Los Angeles-based MuckerLab.