Revolut credit/charge card idea


#1

Hi there!
My first post here so - Big Hello to Everyone!
Since there is stuff one can do with credit or charge card only (eg car rental or some subscriptions) I think there is a way to offer credit/charge card to revolut customers worry free:

  1. Customer makes a deposit with Revolut - let’s say EUR 3000
  2. Revolut issues him with a credit/charge card for a fee, let’s say EUR 20/year, with limit EUR 3000 accepting deposit as security - no risk, money is with Revolut already. Deposit cannot be withdrawn or used unless Customer wants to freeze the card for the amount and the amount is available - money wasn’t spent.
  3. Customer enjoys having true credit card benefits and it’s affordable.And perfectly safe to Revolut.

And what you think?


Metal cards
#2

Brilliant idea :+1:
Twntytwenty
@AndreasK what you think ? :+1:
Is it possible in general to implemment this idea or there any restrictions which could prevent :r: doing this without a banking licence? :slight_smile:


#3

Honestly I don’t see much use for it. The only situation where you might need a credit card is car rentals and even then most of them have started to accept debit cards by now.

And if you already need to have the money with revolut why pay20/ year? It seems expensive. Just get a regular credit card for 15€ a year or something like that


#4

I agree with megamaster.


#5

credit cards add a lot of extra safety prepaid and debit cards don’t have


#6

On :r: we might benefit of FX rates :slight_smile:
I’d love to have prepaid credit card, don’t like to use my normal one.
Booking hotels/car rentals would be main benefit for me :+1:


#7

my only stopper is the “weekend surprise”

having section 75 protection (“credit card”) and automatically handling weekend transactions as an authorization hold until the next week day :r:'s would be the ultimate payment card.


#8

That’s UK only I believe. On much of the world you don’t get any extra protection compared with a debit card, and even then while not mandated by law the chargeback process is exactly the same and gives the same protections for debit and credit cards.

Overall, while I know there are use cases for credit cards, I’ve used them in the past and still keep one, the use cases are less and less and there are much more use cases where you can use debit but credit is not accepted. Here in Portugal while everyone accept debit, credit card acceptance should be somewhere around 50%

And in general I just find the concept of a credit card outdated. If you’re gonna use them for credit, the interest rates are insane and if you’re gonna pay them off every month, you’re better of just using a debit card to start with

For this specific case, if revolut would insure the credit line against the money you have already put there, they wouldn’t rack up interest, which is what the credit card business is all about, so I don’t see any incentive for them


#9

:r: already offers loans, if such credit card would actually offer credit you can use it to spend for free (up to a limit) as long as you pay it back within the next 30 days and if you don’t just charge it at the same rate they already have for loans


#10

That would make sense, but that would just be a regular credit card. And I believe that by EU law the minimum is now 50 days before they can start to charge you interest


#11

not “just a regular credit card”. a purchase credit card for the global world at better-than-mastercard rates managed from the phone, with instant notifications, APIs and, that can spend crypto currencies.

I’m sold already :wink:


#12

Thanks for feedback. Although from my own experience credit or charge card is still required for car rental deposits and airline reservations. Not all of them - I agree, but best rates I could find on cartrawler or rentalcars search engines all require credit card for security. I couldn’t register Revolut card for airline tickets recently, too: “Your card has been rejected, please use credit card”.
Yes, you can have a credit card from your bank, mine is even cheaper - ca. 10€ per year. But, as most credit cards on the market, it comes with currency exchange fees - the rate itself is always worse than Revolut’s own plus they charge 3%.


#13

I rented a car in the US a couple of weeks ago (through Budget.com, subsidiary of Avis).
I used my regular bank’s card (debit) for the authorization hold, when I got the car. (they wouldn’t accept Revolut nor Transferwise cards)
After returning the car, they cancelled the hold, and I paid everything with Revolut.

While it could be easier to do everything with :r: it wasn’t a major problem and I saved quite a lot on FX :slight_smile:


#14

just be sure to return the car on a week day :stuck_out_tongue_winking_eye:


#15

Or have some USD already in my account, which is what I did :slight_smile: (exchanged some EUR into USD during the week before my departure)


#16

But the issue is where’s the profit? Sure a percentage of people won’t pay the card back on time and will pay interest, but the primary driver of credit cards and charge cards is the fees, most of them hidden…

The credit card I have currently with my regular bank is free, no anual fees, but there is still the 3% fx and surely other hidden fees such as the petrol 0,50 fee

I just find the Revolut business model with the fx rates, to not be profitable with credit cards


#17

We not mentioning real credit card which :r: can’t do anyway.
So no interest,but fixed charge for card service :slight_smile:
(Not credit,But precharged card which would show up as creditcard for merchant) .
:r: can’t do loans neither…
They don’t have Banking licence …


#18

I have three free 0% forex credit cards, two charging 0% over mastercard rates (b credit card and tandem) and one 0% over visa rates (nationwide’s select). Tandem’s even gives quite good cashback.

and I’m pretty sure they are making money


#19

Though there must be an annual fee or some big fee somewhere…


#20

none, completely free for me. they are paid from the fees the merchant pays and the interests from those who don’t pay the whole balance every time. worth mentioning those examples have reasonable interest rates, between 8.9% and 19.9% APR.