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What do you mean when you say these companies are offering credit cards? Aren't those cards still managed by Visa, Mastercard, AMEX, or Discover? My understandi
by some_random 3y ago
What do you mean when you say these companies are offering credit cards? Aren't those cards still managed by Visa, Mastercard, AMEX, or Discover? My understanding is that they're just running the rewards system and putting their name on the card.
- lotsofpulp 3y agoVisa and Mastercard just operate the network, they do not control the funds or take on any credit risk. Amex and Discover do operate as lenders, and also operate the network.
- some_random 3y agoRight, but what's the risk to the financial system paulusthe was talking about above in an airline partnering with Chase and Mastercard to to offer a credit card? The lender in all cases isn't going to be the airline, right?
- lotsofpulp 3y agoFor sure, the airline is never the lender on a branded credit card, and takes in no credit risk. It will be a licensed a bank.