Personal Finance

Why no one ever thought of this?

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  • Aug 3rd, 2017 6:39 am
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[OP]
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Dec 13, 2016
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Why no one ever thought of this?

I have a great idea and what a hell.... I'm too stupid to implement it. The idea is this....

There are so many us credit cards I'd like to apply for, but can't because I am not a US resident. Why wouldn't someone set up a company where you pay the annual fee and in return you get a credit card of your choice. For example it would work like this:

Apply for Amex Hilton Surpass which is $75 annually through the fictional intermediary company, lets call it cardxpress.

You pay cardxpress 75 service fee plus 75 for Amex annual fee (so $150 total) upon approval - see below.

You wire the company the credit limit you would like to have on this card, say $20,000.

The company keeps the money as insurance (so, like a secure card) paying you no interest while you still have to make regular payments every month. If you decide to close the account you get your money back.

There is already a company called payoneer that has been setting up US bank accounts regardless of where you live, so I don't see why can't the same be done with credit cards.
22 replies
Deal Fanatic
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Dec 8, 2007
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How does this help you get approved by the provider of the cards?
Why would I send any amount of money to an intermediary - what's the point of them holding the money vs. the card issuing institution (aka, a secured credit card facility)?

Also, this smells funny.
Hydropwnics wrote:"TodayHello is a certified hustler and original gangster."
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Mar 23, 2004
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Markham
I have checked the payoneer website and where do they say they open US bank accounts for you? It's basically like an upgraded paypal.

And imo your idea wont work.
Sr. Member
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Oct 19, 2016
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These kinds of services already exists...but why US credit cards ? I dont see anything special about them..(aside from the wide variety and fancy cards) besides most of them charge for Foreign Transaction Fee for usage outside USA.
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Aug 22, 2011
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Center of Universe
No idea is a bad idea...
[OP]
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angel_wing0 wrote: I have checked the payoneer website and where do they say they open US bank accounts for you? It's basically like an upgraded paypal.
Nothing like paypal.

I have a payoneer account. You get a bank account in your name.
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Nov 22, 2015
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It won't work because Canadians simply do not want US credit cards. There are a small % that travel regularly enough to warrant having a US credit card, but vast majority don't need or want one, and certainly would not pay a fee to get one.
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Apr 22, 2014
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BiegeToyota wrote: You wire the company the credit limit you would like to have on this card, say $20,000.
LOL you want to put 20K on account not earning a return with some sketchy company just to use a credit card?

What a terrible idea.
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Jun 10, 2008
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superfresh89 wrote: It won't work because Canadians simply do not want US credit cards. There are a small % that travel regularly enough to warrant having a US credit card, but vast majority don't need or want one, and certainly would not pay a fee to get one.
They might for the welcome/bonus points even it they don't travel there often. But yes, it might not be a big enough number to warrant a niche business setup.
[OP]
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philland wrote: LOL you want to put 20K on account not earning a return with some sketchy company just to use a credit card?

What a terrible idea.
A lot of foreigners who don't have access to USA credit cards would throw money at this idea.
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Sep 21, 2004
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mrtrump wrote: These kinds of services already exists...but why US credit cards ? I dont see anything special about them..(aside from the wide variety and fancy cards) besides most of them charge for Foreign Transaction Fee for usage outside USA.
I keep a US issued credit card for shopping purposes. Some websites require you to have a US issued card to Purchase. Send even require a US ip on top! I keep a VPN account just to mask my ip to make us purchases.

Extreme I know but people Have their reasons.
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Mar 16, 2010
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ITT OP is trying to start a ponzi scheme.
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Oct 20, 2008
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BiegeToyota wrote: You wire the company the credit limit you would like to have on this card, say $20,000.
It's a shaky idea at best, but good luck getting people to do this.

Are you from Nigeria?
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Jul 18, 2016
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Great idea, Biege. I'll start the company. Please, send me $20,000

Totally agree with @philland!
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Mar 9, 2012
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Kitchener
Stupid question, why not get a prepaid Visa or Mastercard from the US? Set up a US bank account to found said Visa. Use the payoneer to set up your US bank account.

Am I missing something?
Why can't we all just get along?
[OP]
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jeff1970 wrote: Stupid question, why not get a prepaid Visa or Mastercard from the US? Set up a US bank account to found said Visa. Use the payoneer to set up your US bank account.

Am I missing something?
Well, yes. The many benefits that come with US credit cards.
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Oct 1, 2011
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The US cards have better rewards.

Plus, if a service like this does start driving Canadians away from using more of the Canada-issued cards, then maybe our cards will start offering better rewards as well.

I think this idea would be really difficult to get working because:
a) a company doing this would have to find many means to protect itself from fraud;
b) crossborder laws and financial businesses might be a headache to navigate;
c) the deal you offer isn't enough of an incentive for most Canadians to go for it.
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Aug 8, 2012
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BiegeToyota wrote: A lot of foreigners who don't have access to USA credit cards would throw money at this idea.
yabbut...

Are you trying to take advantage only of the credit card, not the bonus? Most people whining about not being able to get US credit cards are whining about the bonuses.

Presumably with your fictional company, they are the ones applying for the credit card in their name and giving you a supplemental user card/corporate card, so they can't get the bonus 100 times for 100 different customers, just once.
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
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barricuda wrote: They might for the welcome/bonus points even it they don't travel there often. But yes, it might not be a big enough number to warrant a niche business setup.
Except that with this construct the bonus won't be repeatable for each customer, just once for the shell company ... so there isn't even a bonus for the final customer.
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
[OP]
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Dec 13, 2016
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ace604 wrote: yabbut...

Are you trying to take advantage only of the credit card, not the bonus? Most people whining about not being able to get US credit cards are whining about the bonuses.

Presumably with your fictional company, they are the ones applying for the credit card in their name and giving you a supplemental user card/corporate card, so they can't get the bonus 100 times for 100 different customers, just once.

Let's put it this way. I am a Hilton Diamond member which comes with many perks that I enjoy. To remain Diamond I would have to stay 30 times within the next year which isn't going to happen.

Hilton card from Amex comes with instant gold membership which already gives you free breakfast and sometimes the access to executive lounge. If I spend 40k on the card I will get upgraded to Diamond. No card in Canada offers anything close to this and I would gladly pay twice the membership fee and give a deposit to have access to this card.

Yes, implementing it would be very difficult, but someone with enough cash would be able to do it. The card wouldn't be aimed at Canadians as most Canadians don't even know about Payoneer. It would be aimed at foreigners, mostly business owners who could see real value in such service.

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