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I've always been surprised by privacy.com's business model. Do they really make enough money from those small credit card processing fees to stay afloat, or are

• jaywalk 5y ago
  I hope they're making enough money. They offer a fantastic service, and they do have paid tiers as well.
• AlbertCory 5y ago
  I hope the fees keep them afloat, but they are one online service that I wouldn't mind paying a monthly subscription for.
• morpheuskafka 5y ago
  So the processing fees (called interchange) are capped at a $0.21+0.05% low rate for most banks, but very small banks and credit unions are exempt from this cap, and charge ~2% similar to credit cards. Fintechs always partner with a small bank to issue their cards and split the revenue. So the thing is, most of their customers are going to be connecting a debit card from a large bank (they don't allow credit cards as a funding source). A few will come from a Durbin-exempt institution like a small credit union or a community bank (including one issued by another fintech/bank partnership such as Chime). But on the whole, they will mostly be paying the low interchange and charging the high interchange. Since the new cards are considered credit cards, not debit cards, they won't have to worry about Durbin amendment at all.
  • hobo_mark 5y ago
    I recognize another patio11 connoisseur.