The Challenge

Gauss’s entire user experience for a new credit card is designed around minimalism, requiring little user input. While building the initial versions of the product, the goal was to have consumers open a new credit line in under 5 minutes with no origination fee.

But as Gauss built the initial versions of the product, the last leg of the signup - the balance transfer - was especially hard to digitize. Incumbent balance transfer process involved several inputs from a user regarding their debt such as issuer name, debt amount and account number. Eventually payments to existing lenders would be mailed via a check. This process has several shortcomings:

• Gauss would need to develop a system to mail a check to every credit card in the US or find the right partner to work with.

• Incorrect account information or account status would result in return mail that would increase Gauss’s overhead cost.

• With an inherent 2-3 week timeline lag for check delivery meant that the user would end up paying higher APR on the existing credit line; the delay in balance transfer inadvertently would cost the user hundreds of dollars in interest charges. 3% of USPS mailpieces get lost, which would lead to accounts not being paid off in time and additional late fees.

A paper based process, balance transfer is not only laborious and costly but also a poor user experience. The cascading negative experiences lead to angry users, driving lower user conversion in the process.

Method’s agile payment solution allows Gauss users to transfer their balances at a fraction of the cost, while paying off their debts instantly.

– Alex Matsenov, Founder & CEO

The Solution

After surveying the market, Gauss found Method to be the only provider with a turn-key solution to manage the entire money movement process for balance transfer. Method’s API simplified the user flow and digitized the user experience:

• User verification and compliance for balance transfer is processed instantly in parallel, while determining credit eligibility

• The user can view all credit cards that are available for pay off. Account details such as status and balance are retrieved for user view. 

• The user can pay off multiple cards from Gauss’s credit line any number of times and receive payment confirmation instantly. 

Method’s solution enables the user to seamlessly move to a lower APR credit card, with no changes to how they use their cards, saving hundreds of dollars on interest charges in the process. Additionally, with a one-click balance transfer, Gauss increased user delight and user conversion.

With the entire money movement being handled online, Gauss can send thousands of transactions per second programmatically. The real time account verification lowers the risk of returned payments and overhead costs, enabling Gauss to deliver on the promise of no origination fees.

Gauss went from initial call to Go-Live in 30 days, with instant verification, transfers, and confirmation. 

About Gauss

With Gauss, users can pay off any credit card balance using a low interest credit line. Through the app, they can securely connect their cards and get a low APR credit line to offload their expensive balances seamlessly with zero fees. Gauss instantly checks the user’s eligibility with a soft credit pull that doesn't affect the credit score. Gauss never charges a late payment or an overdraft fee. Learn more about Gauss here.

About Method Financial

Method’s APIs are redefining financial connectivity with real-time, read-write, and frictionless access to all consumer liability data with integrated payment rails. Method helps lenders increase revenue by streamlining customer acquisition, improving underwriting accuracy, and increasing line utilization through balance transfers, all without the need for a consumer’s username and password. Today, Method powers solutions for over 60 fintechs, lenders, and FIs including Aven, Bilt, Upgrade, and Figure. Method is backed by a16z, Abstract Ventures, YC, Truist Ventures, and more. To learn more, visit methodfi.com.