Originally Posted by
DC777Fan
If not for the $400/charge limit, I'd definitely be interested for legit business purposes.
That said, for someone super aggressive with a 2% cash back card (in someone else's name obviously), it could get fun. It's an interesting business model not to price premium cards higher because the right business could cause them to lose money here. Through BoA right now, I pay 1.8 or so on regular cards, but premium cards like AX, Visa Signature, etc are 2 point something. I guess they're counting on a mix of debit and other non-premium cards...
Counting on a mix of cards, for one, and preparing to potentially lose money to gain market share also, I'm sure.
I'm a merchant also, but I'm online, and some cards can get above the 3.5% range. I can't swipe, so this could never work for me.
But another legitimate angle for a business could be to selectively use this for a portion of their charges. Anything under $400, up to $250K/year, when it's clearly not a debit card - or even debit cards if they may not hit the $250K.
Like all good shiny new internet companies, they don't mind losing money to get customers. It'll make their numbers look better when they go public and cash out.