Billion Dollar Idea

[tbeer22]

I know this may be a bit out of my reach, or just some type of pipe dream... But I believe I have the next big idea that could revolutionize the way currency is used and transactions are made both online and offline between consumers and merchants. Credit Cards are soon going to be a thing of the past. BillMeLater is a cool idea that should help revolutionize the way consumers purchase goods. http://www.bill-me-later.com/wss/help/aboutus.do

If someone could provide me with some sources or references where I could educate myself about how credit companies actually work, and how to start one, I think my idea could be bigger than cigarettes..

[NeeJam]

http://money.howstuffworks.com/credit-card.htm

[akula]

work at a credit card company

"how cc actually companies work" is a good question

the right answer is to recognize that cc companies are operated by managers, and that's how they actually work

the actual working of a cc company is a function of managerial planning

I guess, to understand how cc companies work, it'd make sense to know the managers of these companies

[cadance]

Hmmmm-that's an interesting site! I'd be curious to see how you do!?? Good luck!!

[akula]

absolutely, without a doubt, not a god damn thing is gonna happen if people continue with this newbie-ass, cloak and dagger bullshit

where's the problem formulation? what problem is the product supposed to be solving?

[bizman]

Not sure if this will be any help but Credit Card companies derive their revenue from two main sources. Discount rates charged to merchants and interest fees paid by the consumer.

Discount Rates: every time you use your credit card at a store, the credit card company charges a discount rate to the merchant for providing the service. I believe this can fall between 1.2-2.9%, but dont take my word on that. So for example say you spend $100 at a store on your visa. At the end of the month when Visa pays the merchant they will only pay them say $97.10 (for the 2.9% rate). With all the transactions that go on each and every day, you can imagine how much money that adds up to, not to mention they can invest it before they pay the merchants.

Interest: we all know what this means and hopefully dont pay it (i do). With most cards, if you dont pay your balance in full within 21 days of the statement (varies by card), your account will start to accumulate interest on your purchases.

That being said, cc's make a shitload of money. I agree that there will be some revolutionary new way to spend our hard earned money in the future, but it may be a bit premature right now. I'm not sure if consumers are willing to accept an alternative at this moment, i know here in Canada a smart card was introduced but never really took off. Just remember if you are going to get into this area you are competing with serious rivals who have alot more money than you (im assuming) and will definetely not want you to succeed.

Anyways I hope that helps a little and good luck with your future endeavours.

[akula]

that's some killer analysis!

btw: feedfuzz is da bomb

[tbeer22]

Hmmmm-that's an interesting site! I'd be curious to see how you do!?? Good luck!!

that site isn't mine....

bizman thanks for the advice, I found that very helpful.

[bizman]

Akula, thanks for your kind words, havent been writing new content as of late but should start again soon.

Tbeer22, no prob, good luck with everything.