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HSBC Selling or Shutting Down US Credit Cards (Orchard, GM Card, Best Buy, HSBC Cards, etc.).

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Anonymous
Not applicable

Re: HSBC Selling or Shutting Down US Credit Cards (Orchard, GM Card, Best Buy, HSBC Cards, etc.).


@Anonymous wrote:

Really peculiar.

I had a nice long talk with a Citibank rep last evening about my card and we got to talking about fees and interest.

I always pay my balance so quickly that I know they havent made more than a buck in interest off me.

He told me that from their standpoint they want me to pay my balance quickly so they recoup their money. He said the fee charged every time the card is swiped is sufficient enough that they dont need to make money on the interest but prefer I pay my balance off quickly.

 

Is there some difference between the way Citibank does business compared to HSBC?

 

Confused.


 

There must be some difference.  That's why Citi is right up there at or near #1 and HSBC is right down there at or near # last.  Smiley Happy

Message 41 of 62
Anonymous
Not applicable

Re: HSBC Selling or Shutting Down US Credit Cards (Orchard, GM Card, Best Buy, HSBC Cards, etc.).

"It really looks like HSBC wants out of their U.S. consumer card business though."

======================

Probably like the rats that scatter when they know the ship is sinking.

The US dollar is in serious trouble around the globe. Maybe HSBC is bailing as far as they are able to minimize losses...'just in case' the worst happens ?

Message 42 of 62
stan_the_man
Established Contributor

Re: HSBC Selling or Shutting Down US Credit Cards (Orchard, GM Card, Best Buy, HSBC Cards, etc.).


@Anonymous wrote:

@Anonymous wrote:

Really peculiar.

I had a nice long talk with a Citibank rep last evening about my card and we got to talking about fees and interest.

I always pay my balance so quickly that I know they havent made more than a buck in interest off me.

He told me that from their standpoint they want me to pay my balance quickly so they recoup their money. He said the fee charged every time the card is swiped is sufficient enough that they dont need to make money on the interest but prefer I pay my balance off quickly.

 

Is there some difference between the way Citibank does business compared to HSBC?

 

Confused.


 

There must be some difference.  That's why Citi is right up there at or near #1 and HSBC is right down there at or near # last.  Smiley Happy


In order to make money solely on swipe fees, your customers must have a high throughput, and you have to push as many customers as possible into receiving electronic bills and and making electronic payments.

 

If one of those legs falls, life if most of your customers have very low credit limits, it makes it hard to make a buck just off swipe fees.

Message 43 of 62
Anonymous
Not applicable

Re: HSBC Selling or Shutting Down US Credit Cards (Orchard, GM Card, Best Buy, HSBC Cards, etc.).


@Anonymous wrote:

"It really looks like HSBC wants out of their U.S. consumer card business though."

======================

Probably like the rats that scatter when they know the ship is sinking.

The US dollar is in serious trouble around the globe. Maybe HSBC is bailing as far as they are able to minimize losses...'just in case' the worst happens ?


 

Hard to say exactly why they are bailing out.  But it has been in the works for a long time now, I think.  It has been at least a year -- maybe more -- where they have not given any CLIs and then have instituted more AFs.  A lot of people have $300 limits and $59 AFs. 

Message 44 of 62
Anonymous
Not applicable

Re: HSBC Selling or Shutting Down US Credit Cards (Orchard, GM Card, Best Buy, HSBC Cards, etc.).

"There must be some difference.  That's why Citi is right up there at or near #1 and HSBC is right down there at or near # last."

=============

 

got to be something.

Citibank is incredible as far as our credit lines go. The wifes APR is 6.74 on hers and  mine is 10.74 (shes never had bad credit, I have) and they give us a fairly generous limit on both cards (about $17,000 total). Theyve been more than helpful and have gone to bat for me twice when someone tried to rip me off (thankfully I paid by CC and not check or money order).

A  couple of their 'views' dont line up with mine, but I didnt get their card to worry about their political stance.

Message 45 of 62
stan_the_man
Established Contributor

Re: HSBC Selling or Shutting Down US Credit Cards (Orchard, GM Card, Best Buy, HSBC Cards, etc.).


@Anonymous wrote:

"It really looks like HSBC wants out of their U.S. consumer card business though."

======================

Probably like the rats that scatter when they know the ship is sinking.

The US dollar is in serious trouble around the globe. Maybe HSBC is bailing as far as they are able to minimize losses...'just in case' the worst happens ?


Since they are lending and borrowing in dollars, I don't think currency valuations are a super big concern for them. If the dollar completely collapses, so will the currencies in many other countries where they do business.

Message 46 of 62
Anonymous
Not applicable

Re: HSBC Selling or Shutting Down US Credit Cards (Orchard, GM Card, Best Buy, HSBC Cards, etc.).

"In order to make money solely on swipe fees, your customers must have a high throughput, and you have to push as many customers as possible into receiving electronic bills and and making electronic payments.

 

If one of those legs falls, life if most of your customers have very low credit limits, it makes it hard to make a buck just off swipe fees."


They are certainly making a lot more off me use of the card in swipe fees than interest Smiley Very Happy

The rep didnt seem to be worried about the interest at all. He was much moreso in that I repay quickly enough...which tends to make me think that they probably are making a bit of money in swipe fees rather than interest.

 

I saw that the fed is...or is trying to....get the swipe fees limited to something like 12 cents per swipe. I wonder how that will affect CC companies.

Message 47 of 62
Anonymous
Not applicable

Re: HSBC Selling or Shutting Down US Credit Cards (Orchard, GM Card, Best Buy, HSBC Cards, etc.).

" If the dollar completely collapses, so will the currencies in many other countries where they do business."


Thats something that I dont think a lot of people around the world understand. Our economy is so entertwined in the global picture that if we go down its certain to take a lot of folks with us.

Even if China and other countries bail on the dollar...WE buy a crap load of product from China. What are they going to take in the dollars place for all that crap they want to sell us?

A dead dollar is no good for anyone.

Message 48 of 62
Anonymous
Not applicable

Re: HSBC Selling or Shutting Down US Credit Cards (Orchard, GM Card, Best Buy, HSBC Cards, etc.).

"Hard to say exactly why they are bailing out.  But it has been in the works for a long time now, I think.  It has been at least a year -- maybe more -- where they have not given any CLIs and then have instituted more AFs.  A lot of people have $300 limits and $59 AFs.


Sounds about right.

I didnt have the annual fee, but my liimit in my HSBC card was $300.

I told them to raise it or close it. They chose the latter.

 

Message 49 of 62
p-
Valued Contributor

Re: HSBC Selling or Shutting Down US Credit Cards (Orchard, GM Card, Best Buy, HSBC Cards, etc.).

 

I saw that the fed is...or is trying to....get the swipe fees limited to something like 12 cents per swipe. I wonder how that will affect CC companies.


Probably will put a damper on rewards...  After thinking about it the HSBC sale might be a good thing for me; I have outgrown my OB card and am only keeping it for age of credit, but every year that annual fee tastes a little worse.  If the buyer converted me to a better product but kept the originating date of the trade line, that would be great.

Message 50 of 62
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