3 ms·

This suggests an opportunity for a credit card startup that: * Charges no fees of any kind * Charges a rate that is determined by a publicized equation where

by ph0rque 18y ago

This suggests an opportunity for a credit card startup that: * Charges no fees of any kind * Charges a rate that is determined by a publicized equation where the only variables are the amount borrowed, time (in, say, days), and the rate.

jimbokun 18y ago
Or in the words of Mr. Kahr: "You know -- 'transparency card,' 'rock solid card' -- whatever it may be. I don't believe that that would succeed."
- ph0rque 18y ago
  That's great validation, to paraphrase Arthur C. Clarke: > If an elderly but distinguished expert says that something will be successful he is almost certainly right, but if he says that it won't, he is very probably wrong.
  - pragmatic 18y ago
    You'd need a huge bankroll to get started. Financial startups aren't as easy as a social media web 2.0 site. Look at prosper.com. Regulatory costs are astronomical. Between state and federal auditors and Sarbanes-Oxley and CRA, etc, you'll have your hands full. Also, why would investor capital flow to you? You'd make a lower return with no upside of lower defaults, etc. But yes go ahead. Start a low rate credit card company. I might sign up for your card!
    - helveticaman 18y ago
      More importantly, you'd have to cover lobbying costs for 5 or 6 years just to break into the tight oligopoly.
      - lnguyen 18y ago
        Discover finally settled a suit with Visa and Mastercard over anti-competitve practices: http://www.reuters.com/article/bankingFinancial/idUSN2735065420081028 http://www.reuters.com/article/bankingFinancial/idUSN2735065... FYI, Discover's been around since 1985 (introduced during '86 Superbowl), suit was filed in 2004 (along with a similar one by AmEx) and finally settled in October for $2.75 billion.
    - anamax 18y ago
      > Sarbanes-Oxley Only if you're public in the US. If you're not holding deposits/selling insurance, it's unclear why you'd have financial audits by govt organizations. You'd have to deal with the restrictions on offering credit though.

by ph0rque 18y ago

jimbokun 18y ago

Or in the words of Mr. Kahr: "You know -- 'transparency card,' 'rock solid card' -- whatever it may be. I don't believe that that would succeed."

ph0rque 18y ago
That's great validation, to paraphrase Arthur C. Clarke: > If an elderly but distinguished expert says that something will be successful he is almost certainly right, but if he says that it won't, he is very probably wrong.
- pragmatic 18y ago
  You'd need a huge bankroll to get started. Financial startups aren't as easy as a social media web 2.0 site. Look at prosper.com. Regulatory costs are astronomical. Between state and federal auditors and Sarbanes-Oxley and CRA, etc, you'll have your hands full. Also, why would investor capital flow to you? You'd make a lower return with no upside of lower defaults, etc. But yes go ahead. Start a low rate credit card company. I might sign up for your card!
  - helveticaman 18y ago
    More importantly, you'd have to cover lobbying costs for 5 or 6 years just to break into the tight oligopoly.
    - lnguyen 18y ago
      Discover finally settled a suit with Visa and Mastercard over anti-competitve practices: http://www.reuters.com/article/bankingFinancial/idUSN2735065420081028 http://www.reuters.com/article/bankingFinancial/idUSN2735065... FYI, Discover's been around since 1985 (introduced during '86 Superbowl), suit was filed in 2004 (along with a similar one by AmEx) and finally settled in October for $2.75 billion.
  - anamax 18y ago
    > Sarbanes-Oxley Only if you're public in the US. If you're not holding deposits/selling insurance, it's unclear why you'd have financial audits by govt organizations. You'd have to deal with the restrictions on offering credit though.