I had this idea yesterday..
What about a site that allow you to pay your rent with your credit card (there are some but they aren’t marketed the way I’m thinking)
Sell the concept on the auspice of being able to reap the rewards from your credit card (frequent flyer miles or whatever rewards). That’s a ton load of points a year at just a $1,000 monthly rent..probably worth a trip at least a year
Market it on flyertalk.com or other online forums where people are discussing frequent flyer miles and other reward programs
Market it to the developers/owners of big complexes on the auspice of convenience to their tenants
Either one or a hybrid (depending on how the negotiation goes with the landlord prior to their first tenancy) can absorb the fees.
The company providing the service charges a small..really small fee and then automatically pay the bill by check. We create 30-60 day back flow of funds from fees and then make interest on that too..like amazon.com
Never any inventory + automated deployment of checks = streamlined business with low maintenance
In this economy, I bet lots of people would like/attempt to put their rent on a credit card to defer expense, in addition to getting something out of paying it in the first place.
I have put in calls to friends/colleagues that work in private banks to see what their take is, as I believe this sort of thing would most certainly need to be managed by a bank and not an independent person or company.
Responses from advisers so far have been:
Risk of charge backs
Credit card processing fees make margins to slim or even negative
Red tape and/or legislation
What are you thoughts on this idea?
I think for the simple aspect of reaping beinfits from frequent flyer miles,rebuilding and restoring credit more expediently and deferring from one’s bottomline. Sure,charge backs are dangerous,but you can protect yourself as a merchant from this in very smart ways responsible ways that the consumer can understand. % is one that can cause a red flag but I think one must determine what there incentives are as well as there goal by using this method which will most likely rebuild credit rapido and give you something to look forward to like a trip to Brazil or your most favorite travel destination! Great Idea Alove!
Hey D! Im still playing with it and putting out feelers. I think it could make a lot of sense for a lot of people. The chargeback woulnt be so bad, given people completely pay their rent every month anyway….
I hope I get to see you soon!