Wal-Mart, Amex take on banks with Bluebird debit card
Oct 22, 2012, 4:39 pm
#256
Join Date: Sep 2009
Location: MAD
Programs: DL, UA, AA, BA, Marriott
Posts: 599
Not to mention off the average customer they likely make alot in fees. The average consumer of prepaid cards isn't able to get credit via a bank for a reason...
Oct 22, 2012, 4:40 pm
#257
Join Date: Jan 2009
Location: LAX
Posts: 670
This is exactly the kind of business method that can result in account closures/store bans/etc for FTers who push it too hard. Despite widely held belief, not every single product or service offered by a company is profitable. Many products/services are used to lure consumers in so that they will then become a patron of the company's profitable products and services. In those instances, if the company notices a customer methodically and routinely using that loss leader and nothing else, it's unsurprising if the company puts a stop to it.
Oct 22, 2012, 4:50 pm
#258
Join Date: Dec 2009
Location: IAH ↔ PAR
Posts: 777
Ah, I see. Well, as far as I can tell, for Vanilla, OD, and Amex SPG the effect of a Vanilla purchase at OD does not change if the purchaser is an FTer vs a normal human. From their points of view, all transactions should yield the same result, right? And that result should presumably be profitable, otherwise they wouldn't offer them (unless as a calculated loss leader for OD), right?
So then the question, as you posed, is how does BB make money. I haven't spent enough time looking at the details, but I would assume BB makes at least some money. As pointed out, these are all advertised features of the product.
Of course, the value prospect for Amex might just lie in the big picture (e.g. some high value users, some low value users, on balance a decent return). If that is the case, though, then Amex may root out habitually low value users and shut them down. But, as with this entire thread so far, it's all speculation at this point.
So then the question, as you posed, is how does BB make money. I haven't spent enough time looking at the details, but I would assume BB makes at least some money. As pointed out, these are all advertised features of the product.
Of course, the value prospect for Amex might just lie in the big picture (e.g. some high value users, some low value users, on balance a decent return). If that is the case, though, then Amex may root out habitually low value users and shut them down. But, as with this entire thread so far, it's all speculation at this point.
OD will pay Chase 2% on $503.95, pocketing $493.87. Unless they're able to buy cards from VN for less than that (this might actually be the case), they're running a loss.
I dont know that Chase would even be able to tell what you bought at OD unless they're somehow integrated with OD's POS system (not out of the realm of possibility). They'll make as much as they typically make on OD purchases, though pocketing $10 and shelling out 2.5k UR points means they have an internal valuation of UR points at around 0.4c/pt. Why they disapprove of this is cycle though is because it changes their risk profile for their customer and exposes them to higher default risk - same reason why cash advances are at a higher interest rate.
How much VN and BB makes will depend on their agreements, which also affects whether or not OD makes money. BB makes some marginal income from the interest from the deposited funds but makes the most from selling your shopping/spending habits. In either case, they wont make very much from deposits and immediate withdrawals.
VN makes the difference between what they charge OD and BB. I have to imagine they are making some amount or their business wouldn't be sustainable, and out of everybody they probably have the most vested interest in seeing this cycle continue.
Oct 22, 2012, 4:53 pm
#259
Join Date: Dec 2004
Location: SEA
Posts: 1,887
Oct 22, 2012, 5:10 pm
#261
Join Date: Jul 2010
Posts: 163
What are the odds that the Bluebird card will be eligible for Amex's Small Business Saturday promotion next month?
I'm guessing pretty low since it's not a credit card.
On the other hand, the promotion has offered a "statement credit" and the Bluebird card does provide us with an online statement, so maybe it will qualify.
Any other guesses?
I'm guessing pretty low since it's not a credit card.
On the other hand, the promotion has offered a "statement credit" and the Bluebird card does provide us with an online statement, so maybe it will qualify.
Any other guesses?
Oct 22, 2012, 5:10 pm
#262
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,026
So, sure, if you could scale it to $500,000 units, fine, it might be worth the $1,000 per transaction. But you can't. $500 is the max. So this isn't an issue.
I don't think it's crazy for Vanilla to have a business model where Amex gets some payment for driving demand through their network.
Oct 22, 2012, 5:17 pm
#263
Join Date: Jun 2012
Posts: 115
I tried adding Sallie Mae to my Bill Pay, but it keeps saying the account number is wrong. I know it is correct, and I tried multiple times. Anyone have any ideas?
Also, after I just read through the FAQ, this can be like AP with the send money feature, just with vanilla
Also, after I just read through the FAQ, this can be like AP with the send money feature, just with vanilla
Last edited by BQatWSU; Oct 22, 2012 at 5:45 pm
Oct 22, 2012, 6:12 pm
#264
Join Date: Mar 2012
Posts: 784
Maybe I don't understand who gets paid what in transactions, but isn't the loser Chase? Not only are they paying 5x, but isnt the fees associated with combination of individual transactions totaling $500 more than the one fee associated with $500? I remember an equation on this forum that basically said 30+ transactions made for happy providers. Most of the PP say load $x or 30 transactions minimum.
Oct 22, 2012, 6:17 pm
#265
Join Date: Sep 2008
Location: BWI
Posts: 1,782
Anyone successful in loading a permanent BB card with a credit card at WM? Seems like the Vanilla Reload works fine from what I've read here...
Oct 22, 2012, 6:46 pm
#267
Join Date: Nov 2011
Posts: 301
The birdie took the ice cream fine for me.
Oct 22, 2012, 7:02 pm
#269
Join Date: Jul 2011
Posts: 42
For me as well
Has anyone had luck finding beans at any of the other locations listed on their FAQ? I tried six 7-11's today with no luck. To hit spend requirements and generate points on cards other than IB, I wouldn't mind picking up cards at places other than OD as their stores are not that close to me. Plus, on my last trip to OD the manager called my credit card holder prior to my purchase to confirm (??) that I could. He was aware of the IB promotion and said the store had gone through several thousand worth of bean purchases in the prior two days. I picked up the scraps, but I'd like to have other options besides OD as I need to fatten my bird - fois gras style
Has anyone had luck finding beans at any of the other locations listed on their FAQ? I tried six 7-11's today with no luck. To hit spend requirements and generate points on cards other than IB, I wouldn't mind picking up cards at places other than OD as their stores are not that close to me. Plus, on my last trip to OD the manager called my credit card holder prior to my purchase to confirm (??) that I could. He was aware of the IB promotion and said the store had gone through several thousand worth of bean purchases in the prior two days. I picked up the scraps, but I'd like to have other options besides OD as I need to fatten my bird - fois gras style
Oct 22, 2012, 7:07 pm
#270
Join Date: Jan 2009
Location: LAX
Posts: 670
For me as well
Has anyone had luck finding beans at any of the other locations listed on their FAQ? I tried six 7-11's today with no luck. To hit spend requirements and generate points on cards other than IB, I wouldn't mind picking up cards at places other than OD as their stores are not that close to me. Plus, on my last trip to OD the manager called my credit card holder prior to my purchase to confirm (??) that I could. He was aware of the IB promotion and said the store had gone through several thousand worth of bean purchases in the prior two days. I picked up the scraps, but I'd like to have other options besides OD as I need to fatten my bird - fois gras style
Has anyone had luck finding beans at any of the other locations listed on their FAQ? I tried six 7-11's today with no luck. To hit spend requirements and generate points on cards other than IB, I wouldn't mind picking up cards at places other than OD as their stores are not that close to me. Plus, on my last trip to OD the manager called my credit card holder prior to my purchase to confirm (??) that I could. He was aware of the IB promotion and said the store had gone through several thousand worth of bean purchases in the prior two days. I picked up the scraps, but I'd like to have other options besides OD as I need to fatten my bird - fois gras style
Edit: these other ways are not related to BB, though.
