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If credit card companies charge merchants interest, how can I open up my own credit card company with myself as the only customer so that I could be the one making money on all my own purchases?
If credit card companies charge merchants interest, how can I open up my own credit card company with myself as the only customer so that I could be the one making money on all my own purchases?
you can't since the merchant has to agree to accept your card and sign a contract. why would he pay you anything for your card.? in effect all he would be doing is selling you on credit.
forget it, you can't . no one would accept it. even the private ones you see go through major banks and they get the fees. they do not keep much of the fees either as that is used to pay a whole chain of expenses for the use of the atm,clearing houses , transmission equipment etc etc.
you can't since the merchant has to agree to accept your card and sign a contract. why would he pay you anything for your card.? in effect all he would be doing is selling you on credit.
What about if I open up a bank and I issue a major credit card like Visa, Mastercard, Discover, American Express, etc.?
the mechants stilll have to agree to go with your card. without the potential of bringing in business through the door wiith many many card holders your chances of getting them to pay you anything is zero.
with 99% of americans who have cards already having a visa or master card they need nothing else.
the only reason a merchant takes a credit card is so they can do business with all of america not just you.
you do not get the fees if you put out a card sponsered by visa or master card , they do. for you it is only a marketing ploy so folks can have a credit card to your store.
the name on the card may say joes meat market but it is still a visa or mastercard, in fact you pay them for that service. it is an extra 1% usually.
First, you have to meet all government regulations. Then you must have reserve funds, probably in the millions.
Next, you have to convince merchants to accept your card. Then you must have funds to pay them for all charges made with your card.
Yes, you could open a bank and issue your own Visa or Mastercard. You have to convince Visa or Mastercard to do business with your bank. In order to open your own bank, you must meet all government regulations, convince the federal government that a new bank is needed in your area, and you must have millions in reserve funds.
You'll also need a board of directors. Everyone must have flawless credit and no criminal record.
I'm thinking that is a lot of work to go through to get 1% back on each of your purchases. But let us know how it works out for you.
theres a reason there's such high fees. they absorb alot of the costs for fraud and chargebacks. there's also a huge amount of money laundering and compliance issues which are constantly changing which you need to be aware of.
Old thread, I know, but I just wanted to say something: I registered an account here just to say that this is one of the most positive and helpful forums I've seen; and even though there are comments like "you can't" in here, they are all followed up with information that could turn the "you can't" into "you can." Well done, commenters! This is exactly why forums exist, and I am digitally patting you all on the back for the informative responses, which helped me and countless others, whereas other websites simply say, "you can't."
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