Perkstreet wasn’t a bank. It partnered with online banks and gave users a debit card that provided rewards just as rewarding as those from the best credit card rewards programs, but without the temptation to get into debt. Seems ideal, and also seems too good to be true. It was. Perkstreet executives have explained the problem very bluntly: they’re out of money and can’t pay out everyone’s accrued award balances.

Users who didn’t withdraw their rewards before today are, well, screwed. The company emphasizes that none of their customers’ balances are lost, which is good, because the FDIC has been around to prevent that kind of thing for about 80 years now.

On the site, the company explains:

Over the last 6 months we have been pursuing additional investment to grow our business to the point it could be self-sustaining. Unfortunately, we were unable to secure more funding and now must begin the process of closing the company.

We are honored that you put your trust in us. We regret the inconvenience and disappointment this causes you. Each of you has been an incredible partner in this journey, whether holding our feet to the fire for things you didn’t like or gushing that you feel like a member of movement rather than a customer.

Keep on perk’n –
Jason & the PerkStreet Team

To customers who complain on the Facebook page, the CEO explains with refreshing bluntness: customers’ rewards are lost because the company doesn’t have the cash on hand to pay everyone.

If we’ve learned anything, it’s that letting rewards build up as long as possible in the hands of a startup company is a bad idea. Perkstreet was only five years old.

PerkStreet is closing up shop today (just announced). Any perk balances in your account are gone unless cashed out before today. [Reddit]
Banklike Company Offering Cash-Back Rewards to Close [NY Times]
Perkstreet [Official Site]

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