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Final – A credit card built for the 21st century

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Re: Final – A credit card built for the 21st century

#361

Post by otakucode »

One question: Does it cut in 'payment processors' or other financial institutions for a percentage of every transaction?

If so, then it has absolutely no place in this century. Transferring numbers does not get more difficult when the numbers are larger, and any percentage-based system is unjustifiable. Transferring numbers is also terribly easy now, so such a service does not even warrant a significant flat fee.

We are rapidly moving toward a situation where virtually every single transaction in our economy gets skimmed by banks for 5% or so. This is giving a ridiculous amount of economic control to banks for absolutely no reason.

Re: Final – A credit card built for the 21st century

#362

Post by otakucode »

troupe wrote: post #104
toomuchtodo wrote: post #81

Earlier quoted context omitted.

Debt isn't a moral obligation, and to somehow frame it as such is dubious at best. If you as a debt owner or servicer can't keep your books straight, you have absolutely no business attempting to collect on a debt. If you're taking someone to court or attempting to take their wages, you better be damn sure you're in the right.

I believe most people would say that when they agree to take money with a promise to repay it, they are under a moral obligation to do so.

When lending money, you are under a moral obligation to bear the consequences of the risk you assumed.

Re: Final – A credit card built for the 21st century

#363

Post by raverbashing »

mwexler wrote: post #349
raverbashing wrote: post #164

Earlier quoted context omitted.

The US banking system is frankly, ridiculous In Europe anyone can send money online to any other account in the EU , given the account number, usually for free. The fact that the US doesn't have that as commonplace as in Europe is ridiculous Canada is slightly better, they already are ditching the magnetic stripes off cards.

I'm not saying that the US banking system is or isnt ridiculous... but in the US, anyone with a bank account can indeed send money to any other account in the world, given the account number, usually for a fee, like many other places; these are referred to often as wires, though there are actually many types of transfers. Getting it free usually requires a balance over a certain amount (banks live on fees, sadly). Wh…

Good, so I have some constraints:

- This money transfer system works if you have (any) bank account. If you have a bank account that's all it needs (and no sign up)

- It does not depend on any action on the receiving part (so no depositing a cheque or something similar).

- It takes a couple of days tops

- A fee is acceptable, if it's something like $5 at most

- It works for large amounts (for buying a car or a house for example)

- It is trusted. If the money shows in your account that's it (unlike a cheque)

If it has this features, great.

Re: Final – A credit card built for the 21st century

#364

Post by [deleted] »

encoderer wrote: post #356
toomuchtodo wrote: post #19

Earlier quoted context omitted.

Counterpoint. If you get taken to collections over a trivial amount ( Have to go to court for collections? The first words out of your mouth need to be, "Verify the debt." Ask them to produce the document you signed and agreed to. In the vast majority of cases, without this, your case will be dropped with prejudice. This is based on research I did while dealing with a personal mortgage "issue". http://www.thisamerica…

Did you know there are actually a dozen+ different Fico scoring products, several versions for each of the big 3 credit agencies and several product-specific models for Houses, Cars, etc? Lenders do not update to the latest Fico version the way we all buy new iPhones. Many lenders integrate Fico scoring into proprietary models. Having ANY collection will hurt you, period. Even under $100. Even if it doesn't drop your…

[deleted]

Re: Final – A credit card built for the 21st century

#365

Post by new299 »

Someone1234 wrote: post #13

> Final lets you give a unique credit card number to every merchant, or a disposable one-time use number for one-off purchases. This is something I have been asking for since forever! People on here claimed it was "impossible" because of how credit cards work, I guess not... > Tired of your monthly yoga pants subscription? Or a two-week "free" trial that lasted four months? Just deactivate that card number. It's that…

I'd be interested to know if cancelling the card number actually cancels recurring payments. Last time I tried this, my bank told me the recurring payments would still continue even if the card was cancelled. And I needed to contact the vendor and raise a depute before they would consider cancelling the recurring payment. This was however for a debit card, rather than credit.

In general, the way recurring payments are setup seems really bad.

Re: Final – A credit card built for the 21st century

#366

Post by XorNot »

alkonaut wrote: post #338
cdcarter wrote: post #268

Earlier quoted context omitted.

Each insurance company is indeed setting up their own solution for online payment.

Hilarious. Do they also invent an email standard and a currency? Why not ditch checks and just set up a reliable/cheap money transfer system? It's peculiar how the country that is at the epicenter of the world economy and the Internet doesn't actually use the Internet for money related things (tax returns, banking, insurance...).

Finance follows information lag. If everyone had perfect information or speedy funds transfer ability then there would be no stock market.

Re: Final – A credit card built for the 21st century

#367

Post by [deleted] »

cantankerous wrote: post #354
tripzilch wrote: post #341

Earlier quoted context omitted.

> you borrow money with the explicit notion that you might not repay it; that's what sets the interest rate, both sides know that going in. The interest rate is set by the fact that money-NOW is worth more than money-in-a-few-months-or-years. This is also the case if it's certain you will get the money. I never considered that risk would also be a factor in interest rates. It makes sense, but I really doubt it's a ve…

This analogy doesn't relate to OP's comment. He's talking about secured debt with institutional lenders, not interpersonal loans. Risk is an integral component to determining your interest rate in the US. This is why there is an industry around protecting, understanding, and improving one's FICO score here. Try getting a good loan with a crappy (or substandard) credit score. Spoiler Alert: You can't.

[deleted]

Re: Final – A credit card built for the 21st century

#368

Post by tripzilch »

encoderer wrote: post #357
tripzilch wrote: post #341

Earlier quoted context omitted.

> you borrow money with the explicit notion that you might not repay it; that's what sets the interest rate, both sides know that going in. The interest rate is set by the fact that money-NOW is worth more than money-in-a-few-months-or-years. This is also the case if it's certain you will get the money. I never considered that risk would also be a factor in interest rates. It makes sense, but I really doubt it's a ve…

Risk is THE biggest factor in interest rates. If it was all timevalue we'd be paying interest closer to inflation rates. Put yourself in the shoes of a lender. On one hand is a doctor, $300k salary, looking to borrow $30k for a new boat. 780 fico. On the other is Trevor, a bartender who makes $25k a year, has a 680 fico with some late payments and a cable bill collection from 2 years ago and wants $30k for a new car.…

Thanks for clarifying, everybody.

Re: Final – A credit card built for the 21st century

#369

Post by sfonyc »

If you have to partner with a bank can you guarantee the interest rate will be below 10%?

Unless you're offering a 9% or lower rate for everyone and no annual fee this is not a truly customer friendly product, it's like every other bad bank. How can you say you're customer friendly if ANY customer has even a small risk of getting charged more than 10% interest.

Re: Final – A credit card built for the 21st century

#370

Post by encoderer »

[deleted] wrote: post #364
encoderer wrote: post #356

Earlier quoted context omitted.

Did you know there are actually a dozen+ different Fico scoring products, several versions for each of the big 3 credit agencies and several product-specific models for Houses, Cars, etc? Lenders do not update to the latest Fico version the way we all buy new iPhones. Many lenders integrate Fico scoring into proprietary models. Having ANY collection will hurt you, period. Even under $100. Even if it doesn't drop your…

[deleted]

Right, if you put down 50% they're not taking any risk on you! They'll foreclose at a profit! Regardless, name me a mortgage underwriter that will close your loan with an OPEN collection item and I'll be truly surprised. So if you've been thru this, who was your underwriter? (Not your broker..)

Risk profiles at a company like Amex are sophisticated. But you're somebody who apparently is sharing his high-earner status here, but you don't think that was an important caveat to your original post? It's like you're saying "CREDIT DOESNT MATTER*" and in fine print you're saying "if you have enough cash to put 50% down on things and have a high income!"

It's bad advice to give, which was my point, and one I'll standby. Nothing personal of course.

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