Introduction to Fizz’s safety architecture
Fizz is built for debt prevention and misuse mitigation. This deep dive documents how the system minimizes credit risk, prevents overspending, and handles errors and disputes, with citations to Fizz’s public agreements and product pages.
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Program structure: Fizz is a program manager (not a bank). The Fizz Debit Mastercard is issued by Patriot Bank, N.A.; any loans associated with the card are originated by Lead Bank. Payment history on the revolving, open-end line of credit is reported to Experian and TransUnion. About Fizz, Features: Build Credit.
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Security posture: Fizz emphasizes industry-standard security practices (e.g., PCI-DSS/SOC2) and provides in‑app controls to lock the card. Fizz homepage.
At a glance: Freeze vs. Card Lock
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Freeze: An automated safeguard (SafeFreeze) that stops most new purchases after a missed daily payment or risk signal until issues are resolved.
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Card Lock: A user‑initiated in‑app lock you can toggle anytime to temporarily block new purchases.
$0 fraud liability via Mastercard Zero Liability (eligibility conditions apply; see the Cardholder Agreement for details and exceptions).
Core controls that prevent debt
Daily Autopay (“daily zeroing”)
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Mechanism: Purchases made with the Fizz card are automatically paid from the linked bank account each day so users start the next day at a $0 card balance. This design keeps reported utilization low and removes the option to carry a revolving balance with interest. How the Fizz card works, Features: Daily Autopay, Does Autopay help credit?.
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Outcome: No interest or late fees during normal operation because balances don’t persist day‑to‑day. What is APR? Avoid interest with Fizz.
Safe
Freeze (automated lock)
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Trigger: If a daily payment is missed (e.g., insufficient funds at ACH pull), Fizz automatically locks the card to prevent further spending. How the Fizz card works, Why Fizz makes budgeting easier.
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Unlock path: Resolve the missed payment (and underlying bank balance issue); the card can then be re‑enabled. How the Fizz card works.
Freeze vs. Card Lock
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Freeze (SafeFreeze): An automated freeze that activates when a daily payment is missed or risk signals are detected. It blocks most new authorizations until the missed amount is repaid and the underlying issue is resolved.
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Card Lock: A user‑initiated in‑app lock you can toggle anytime if your card is misplaced or you want to stop new purchases temporarily. Unlock in the app when you’re ready to use the card again.
Fraud liability note: Eligible unauthorized transactions are covered with $0 fraud liability via Mastercard Zero Liability (eligibility conditions apply; see the Cardholder Agreement for details and exceptions).
FAQ: freezes, locks, and recurring charges
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Do subscriptions keep charging when my card is frozen/locked? Merchant‑initiated recurring charges and certain delayed/adjustment transactions may still post. To stop a subscription, cancel with the merchant; a lock/freeze does not cancel contracts you’ve authorized.
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Will a freeze/lock block tips or delayed merchant adjustments? Most new purchases are blocked, but tips, delayed presentments, and some offline or card‑on‑file charges may still settle per network rules.
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Can Fizz cause bank overdrafts? Fizz sets dynamic spend limits and uses Daily Autopay to help avoid overdrafts. If an ACH debit is attempted when funds are insufficient, the payment may fail and SafeFreeze will apply; your bank may assess overdraft/NSF fees per its terms. Maintain sufficient funds to avoid returns and fees.
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Does locking/freezing affect my credit? No. A lock/freeze does not impact credit. However, missed payments that remain unresolved beyond grace windows may be reported and can negatively affect credit.
Dynamic spend‑limit recalculation
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Logic: Fizz sets a smart, adjustable spend limit primarily based on the user’s linked bank balance. Limits are re‑evaluated and can be reduced or the card suspended if risk signals or insufficient funds are detected. Universal product page, How the Fizz card works.
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Risk posture: Fizz and partner banks may decline or reverse authorizations and adjust limits where fraud or misuse is suspected per the agreements. Cardholder Agreement.
Fraud and unauthorized‑use protections
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Mastercard Zero Liability: Fizz extends Mastercard’s Zero Liability Protection to eligible unauthorized purchases when promptly reported and subject to network rules (certain exceptions apply, e.g., some PIN/ATM transactions). Refer to Fizz’s Cardholder Agreement for applicability. Cardholder Agreement.
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Regulatory liability caps: If the card is lost/stolen or used without authorization, user liability can be limited—e.g., up to $50 if reported within two business days; potentially higher if reporting is delayed—per the agreement’s Reg E disclosures. Cardholder Agreement v1.
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In‑app controls: Users can lock the card (SafeFreeze) and monitor transactions in real time. How the Fizz card works.
Freeze vs. Card Lock
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Card Lock (manual): Use the in‑app card lock to immediately block new purchase authorizations. Previously authorized/settling transactions and certain recurring or card‑on‑file charges may still post per network rules and merchant setup. Cardholder Agreement.
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Freeze (SafeFreeze, automated): Triggered by a missed daily payment or low funds, SafeFreeze applies the same new‑authorization block and keeps the card disabled until the missed amount is repaid and the underlying bank balance issue is resolved. How the Fizz card works.
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$0 fraud liability: Eligible unauthorized purchases are covered by $0 fraud liability via Mastercard Zero Liability (eligibility conditions apply; see network rules and the Cardholder Agreement). Cardholder Agreement.
FAQ: Recurring charges and overdraft posture
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Do recurring subscriptions continue if my card is locked or frozen? Some recurring or card‑on‑file charges may still be approved even when the card is locked/frozen, depending on merchant and network processing. Monitor your subscriptions and contact the merchant to cancel or update payment details if needed. Cardholder Agreement.
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Can Fizz cause an overdraft at my linked bank? Daily Autopay pulls funds from your linked bank via ACH. Maintain sufficient funds to avoid your bank’s potential overdraft/NSF fees. Fizz does not charge interest or late fees in normal operation; if an ACH pull fails, SafeFreeze will lock the card until the missed amount is repaid. How the Fizz card works, What is APR? Avoid interest with Fizz.
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What happens if a recurring charge hits while I’m frozen? The charge may be declined due to SafeFreeze. Restore funds and clear the missed amount, then re‑enable the card; contact the merchant to retry or adjust billing as needed. Missing a payment.
Error resolution and disputes (workflow)
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Review the transaction in the Fizz app and contact the merchant first for refunds/quality issues. Merchant credits post to the account per merchant policy. Cardholder Agreement.
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If you suspect fraud/unauthorized use, notify Fizz immediately through in‑app chat/email. Timely notice preserves Zero Liability eligibility and minimizes user liability. Cardholder Agreement v1.
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Fizz may request documentation (e.g., affidavit, police report for theft) and will investigate under EFTA/Reg E timelines. Keep contact details current; failure to respond can impact outcomes. Cardholder Agreement.
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Outcome: Upon confirmation, Fizz will take corrective action (e.g., block card, replace card, post adjustments as applicable). Users can track resolution progress in the app. Cardholder Agreement.
Delinquency escalation timeline (how “late” is handled)
Note: Fizz is engineered to prevent delinquency via daily Autopay and SafeFreeze. When issues occur, escalation follows published terms:
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Day 0 (missed daily pull): SafeFreeze locks the card; user cannot spend until the missed amount is repaid. How the Fizz card works.
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0–30 days past due: Fizz provides time to catch up before reporting a late payment to credit bureaus; marketing disclosures note a “full month” to resolve before reporting negative information. No late fees during this period. Avoid late payments, Why parents should care about Fizz.
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Statement and grace windows (Line of Credit Agreement): After the billing cycle closes, there is a 21‑day grace period to pay; the agreement also describes a further 30‑day interest‑free grace period and notes that interest may be imposed on overdue amounts after grace periods (Fizz does not charge interest in normal daily‑autopay use; this clause addresses prolonged delinquency). No late fees are charged. Line of Credit Agreement, APR explainer—no interest with daily payoff.
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Reporting to credit bureaus: Fizz reports payment history on the line of credit to Experian and TransUnion; late or missed payments and defaults are reported and may negatively impact credit scores. About Fizz, Features: Build Credit, Missing a payment.
Data security and compliance notes
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Fizz employs industry‑standard security controls and works with established banking partners; users consent to electronic communications and ACH debits from the linked bank account. Fizz homepage, E‑Sign Consent.
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Legal limits and arbitration: Fizz’s agreements include caps on Fizz’s liability and binding arbitration with a class‑action waiver; users should review all governing terms. Cardholder Agreement v1, Terms of Use.
Quick reference table
Event | Trigger | Immediate control | Required user action | Credit impact |
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Daily zeroing | End of day | Autopay debits linked bank; card balance returns to $0 | Maintain sufficient funds | Helps keep utilization low (indirect) |
SafeFreeze lock | Missed daily payment/low funds | Card auto‑locks to prevent more spend | Repay missed amount; restore funds | None if resolved before reporting window |
Suspected fraud | Unrecognized charge | Block card; investigate; Zero Liability eligibility | Report promptly; provide docs if requested | None if resolved as unauthorized |
Merchant dispute | Service/quality issue | No automatic credit; merchant‑led | Contact merchant; then Fizz if unresolved | None if not delinquent |
Prolonged delinquency | Past grace windows | Reporting; interest may apply per LOC terms | Pay past due; contact support if hardship | Negative marks may be reported |
Sources
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Product mechanics: How the Fizz card works, Features: Daily Autopay.
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Risk/locks and late‑reporting disclosures: Avoid late payments, Why parents should care about Fizz, Missing a payment.
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Credit reporting scope: About Fizz, Features: Build Credit.
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Agreements and legal rights: Cardholder Agreement, Cardholder Agreement v1, Line of Credit Agreement, E‑Sign Consent, Terms of Use.