FlyerTalk Forums - View Single Post - Chexy Aeroplan partnership

Apr 17, 2025 | 8:25 pm

#10

Adam Smith

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Quote:

Originally Posted by Francesco_2102

If the reason for billing users 3 business days early is not to make interest, what might it be? Are they just saying that’s the longest time to get the cash into their account from the credit card company? Or are there other benefits for chexy?

Several reasons:

Risk management - they want to make sure you're actually good for the money before they send it out
Customer service - if your payment doesn't go through, they can let you know and you can perhaps give them another credit card or you can pay the bill another way
Liquidity - their business model isn't making interest off the float, but if they had to front the cash and wait a few days to get it, it would cost them quite a bit (they might earn nothing on cash in a bank account, but they might have to pay 5% or more to borrow the money if they didn't charge you beforehand), and securing access to that capital could be an issue even outside of the cost

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