At 11:55 AM 10/23/2002 -0600, Mike McNamara wrote:
At 1:42 PM -0400 10/23/02, Patrick Chkoreff wrote:SO, it is conceivable that someone could start a credit card company TOMORROW that took payment in NOTHING BUT e-gold. Their expenses would be lower because they would not have to accept any mailed payments, wait for checks to clear, etc. They would also have NO mailed statements. Therefore, they would not have to hire or create a giant clearing house to handle all that paper. Their paperwork and risk would be ENORMOUSLY reduced.
chop
I think that you make an excellent point Patrick! I would also think however that a tremendous amount of credit card company dollars are used in the pursuit of recovering delinquent payments. Recovering such funds in the IG world would probably be much harder given that the IGCC (Internet Gold Credit Card!) company probably would not be able to get e-gold to freeze someone's account based on the fact that they're owed money. I believe that say Visa and Mastercard can fairly easily have your bank account frozen or put a lien against it, etc. if they're owed substantial money.Beautiful! Can you say "secured credit card"? :-)
Just a consideration!
So the credit card company says, sure enough Joe Blow we'll give you a credit card with a 100gg limit. Just spend 50gg into our escrow account and we'll have it right out to you!
Or if you think Joe Blow is a really serious credit risk, just require him to put up the entire 100gg as security deposit.
For excellent credit risks such as Mike McNamara and Patrick Chkoreff, we'd get a card with a 5 kilo limit and no security deposit. The issuer would think to themselves "hey, come on, what's the likelihood of Mike McNamara or Patrick Chkoreff defaulting?" Sure if it happens and they can't talk some sense into us they'd be out maybe 5 kilos tops, but that's no big deal considering they had profits last year of 10 metric tons. :-)
With dynamic risk assessment models, they could eventually trickle any security deposit back to the customer as he establishes a better credit history. Eventually the company could figure what the hell the guy put down a 50gg security deposit but we've already made 100gg in interest payments from him over the last few years, so he can just have the whole deposit back. We're covered!
-- Patrick
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