c2it party to end February, 23 rd
 

From their site:
"We're changing our service. In order to continue providing you with our high level of service, c2it is making changes to the domestic Send Cash fee and Add Cash functionality effective February 23, 2003.

Domestic Transaction Fees:
Send Cash 2.0% of transaction, $0.30 minimum*

ADDING CASH TO YOUR c2it ACCOUNT

1. You can Add Cash to your c2it Account only from a Linked Bank Account and only on the www.c2it.com website. "

Looks like the gave up the fight against Paypal; c2it is as good as dead.

To me c2it was dead from the start. The only people that I know that liked c2it's clumsy service were those that had Citibank-issued cards (no cash advance related fees) that they used to pay themselves in schemes to rack up FF miles.

I've seen a few ebay sellers that say, "will accept c2it ONLY, will not accept PayPal" in an attempt to save themselves approximately 3% in PayPal fees. As an ebay Powerseller I think the key to being a successful seller is to keep your customers happy and one SURE way to quickly alienate your buyers is to sucker them into using an el cheapo payment system that could hit them with huge unexpected cash advance fees plus the associated interest charges.

I say good riddance to c2it!

Nor would c2it accept customers living in the U.S. territories, which is absurd, since we are governed by U.S. law, have U.S. postage and telephone rates, and a federal judiciary to enforce any judgments that may become necessary.

They deserve whatever customer loss they get.

I wonder how overwhelmed C2it will be for the next 30 days with people adding and transferring out the max every day!

It will make it clearly obvious very soon who was taking advantage of the system and who was using it for its intended purpose.

I do feel sorry for those who were using it to legitimately pay bills with their credit cards or receive payments from others on credit cards. But I think we all knew it wasn't gonna last forever. Oh well.

c2it missed the boat, bidpay (Western Union) is a dismal joke from a buyers (payer's) perspective (ie why would any BUYER/PAYER want to use them when paypal exists), and AMEX is missing the entire genre'.

I am stupified when I watch AMEX miss this major wave in payment services methodology and not only has AMEX failed to come up with a competitive technology, they openly set ridiculous limits ($1500 at paypal in a rolling 30day period) for their GOLD/PLAT/CENT cardholders. AMEX - stuck in a perpetual timewarp of technology.

Paypal blew them all away, and most of the electronic payment services never knew what hit them. eBay just picked up a major, major blockbuster profit-center for the long-haul. If they just don't mess up what ain't broke.

[This message has been edited by ILUVCITIBANK (edited 01-23-2003).]

Before Paypal's IPO, Citibank offered to merge c2it and Paypal in a 50-50 split, offering the standalone Paypal the benefit of Citibank's huge marketing muscle and brand name. Paypal's management laughed, pointing out to Citibank that they had a 95% market share in this business, compared to c2it.

I guess Paypal's management was correct in their assumption that they could succeed without Citibank.

I wasn't earning lots of miles transferring money this way. I tried to "keep under the radar" by keeping my transactions under $1,000 each month. But I'm tempted to up this for my grand finale using this service.
The 2% fee for sending cash, makes the service not a bargain anymore. Even if I wanted to still use my credit card, and send money to someone I trusted who would return it, having now to spend $20 to earn 1,000 miles isn't worth it.
Oh, well. All good things must come to an end.

C2IT - R.I.P.

It's too bad about c2it. Now I can no longer pay personal debts to friends over the internet (without getting charged). I reckon the parking lots at local banks will be a little bit more crowded from now on. Convenient while it lasted!

I doubt if the people sending me money will want to continue to do this. At least they´´ll have some notice to pay me in advance.

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Ms.DtG

I am bummed :-(

I was just going to start using it over the next few months... I am planning my wedding trip and coordinating it for everyone that is going with us to Maui. I JUST told them they could pay me by credit card without fees :-( :-( I don't think they'll be prepared to send me payments before the fees kick in...

Well, it says that it will be charging to send cash, but I don´t think they are charging to transfer from your credit card to your c2it account which you can then transfer to your checking account. anybody else read it that way. If that is so, people could transfer to their checking account, then write you a check and basically you have the same time frame as a purchase on your credit card, as well as miles. anybody read this differently?

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Ms.DtG

As per the email:

"Changes to the Add Cash Feature

You will no longer be able to conduct an Add Cash transaction from
your linked MasterCard® or Visa® credit or MasterCard® or Visa® debit
cards. We will continue to provide you with the convenience of
conducting Add Cash transactions from your Linked Bank Account(s).

THIS DOES NOT CHANGE YOUR ABILITY TO CONDUCT
INTERNATIONAL AND DOMESTIC SEND CASH TRANSACTIONS
FUNDED BY YOUR LINKED CREDIT OR DEBIT CARDS."

http://www.flyertalk.com/forum/frown.gif

I read it that way too. It looks like if you're going to add cash by credit card, you must perform a transaction that immediately sends it to an individual, complete with their new fee schedule. No depositing cash into your C2IT account directly from a credit card.

Then they aren´t clear on their web site. I haven´t seen the e mail as i use a different e mail address for it but i will goa check

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Ms.DtG

I just saw the e mail, one of my clients who has been paying me this way just sent it to and sure enough it includes adding cash from your credit card. I will have a few unhappy clients as it was a way that they could pay me by credit card...even those not interested in miles.

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Ms.DtG