(Note:  The $25 sign-up bonus offer expired on April 15th, 2008.) 

Just when I thought I couldn’t take another online money transfer product, I was introduced to Revolution MoneyExchange. My familiarity and past experience with PayPal had me convinced that the world just didn’t need anymore of these services. The $25 sign up bonus kept calling my name, however, so I went for it. Here’s the skinny on the new kid on the block.

When a friend told me about Revolution MoneyExchange, my mind went back a few years to the PayPal bubble. (Remember, when everyone got $25 for signing up, and they earned additional cash for each referral.) Eager to get in on the next big e-commerce tool, people are once again scrambling to be the top referrers for Revolution’s new product. Launched as “the” application for sending and receiving money on Facebook, I scoffed at how practical it could be for me. I rarely visit Facebook, much less do business on the social network.

$25 is $25, however, so I looked into it a bit further. Here are the details I was able to get:

MoneyExchange is just one of many products and companies developed by Steve Case’s Revolution. (In case you care.) The former AOL CEO has tried to market his new online cash service as a necessary social networking tool. At less than 6 months old, MoneyExchange follows in the footsteps of similar tools, such as OboPay and ChipIn.

Signing up for MoneyExchange was relatively easy. Yes, they did ask for some personal information to be able to issue me an account. If you don’t feel comfortable giving out your Social Security number, this process won’t fly for you. If you already do a large percentage of your business transactions online, however, you know that this is hardly confidential info these days. A quick form with your name, address, phone, and SS# will get you an account in less than 3 minutes, if you reside in the U.S.

Getting your bonus was automatic. When I confirmed my account via email, I was instantly credited with $25. This was mine to keep, no strings attached. There are no fees for sending or receiving money to other MoneyExchange users – too bad I have no one to send it to! For a small $2.50 fee, I could cash out my account with a check in the mail. Those who are comfortable linking their accounts to an external checking account can also choose to have it electronically deposited after a standard verification process, and there is no fee for this service.

Referrals can be made, and a $10 bonus is offered for each complete registration. Most of my relatives don’t even know what Facebook is, so this was not the selling point I was hoping for. If you are looking to get your friends and family to sign up, your best bet is to mention it as a viable PayPal alternative.

Privacy could be seen as an issue for some who want to fully protect their personal and financial info. This article by TechCrunch seems to suggest that by signing up for your free account, and your $25 bonus, you are making yourself available for credit card solicitation from RevolutionCard (who is hoping to get into the business in a big way.) For those who have no interest in future or partner offers, the Privacy Policy clearly offers an opt-out form you can mail in. The 41cents for a postage stamp might be worth avoiding future hassles.

Whether you are looking to ditch PayPal or just wanting to earn a quick $25, Revolution made good on its promises during my trial. Within 3 business days, I was holding a $22 check (after fees) in my hand, with no further obligation. Not one to usually cut and run, I would have loved to test out my $25 credit on some of their services, but with no friends on the MoneyExchange or a need to send funds, I opted for the cash payout. Those interested in earning some referral funds, while the earnings are good, might want to consider spreading the love.

(Note: There are no affiliate or referral links of any kind in this article. It is written purely for your own money-making enjoyment.)