Blispay Suspending future purchases

[Anonymous]

How will this look when they close down. Will all current balances them show as maxed out? I know by closing the account there could be an impact to utilization, but for me it will be minimal as I had a low CL.

[pipeguy]

I received this email too - seems their business model turned out to be too good to be true with 2% cash back and zero payments for 6 months which I have used for major purchases over the years and never paid a cent in interest. I suspect that one of two things will happen: #1 they will be bought out by one of the big-boys like Synchrony or Citi-backed retail cards especially since Sync recently lost Walmart or #2 their lending terms will change (higher APR, required monthly payments, no 2% cash back on extended financing) much like Lowes or Amazon or Home Depot or Care Credit. 

BlisPay made a splash when they started but since then its been a "ghost" of a lender, no ads, no promotions, no membership campaign, no CLI allowed - at least that I've seen - online portal is pretty lacking too. Too bad, it was a nice option if you managed to get in when the getting was good (my wife and I both have $7500 accounts).   

[JamP]

The firestorm is just starting on Twitter and Facebook.

[pizza1]

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@Anonymous wrote:
Damnit. I was going to pay my property taxes with that since they don’t take AX.

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@Anonymous, seriously?? This is the thread that brought you out of hiding?? LOL..Im buying a lottery ticket!  Good to see around, hope you stick around

[pizza1]

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@FinStar wrote:
Mine's $15K... from 2016 as well

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well, I stand corrected. It doesnt happen often, but it does happen, LOL hahaha jk!

[pipeguy]

As far as BlisPay liquidity, I suspect the bond market has more to do with their "cash flow" than on hand cash. Credit cards, like mortgages, auto loans (et al) use a process called Securitization to package their receivables into "bonds" that are resold to investors. this process gives investors a greater return than basic Federal or State Bonds, with additional risk, but also gives lenders a lot more liquidity leverage  - think how your local bank offers you a mortgage but they "sell" the paper as soon as you close on your house. 

https://www.investopedia.com/terms/s/securitization.asp

I suspect BlisPays' financial model got caught in the "numbers game" on rising bond prices which made their portfolio less interesting to bond buyers which would dramatically affect their lending cash flow. No primary Credit Card lender wants to "own" their portfolio accounts receivable balance sheet - it limits the size of their business to available cash only.   

[core]

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@JamP wrote:
The firestorm is just starting on Twitter and Facebook.

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Actually I am surprised how quiet it is out there still.  I can only locate a couple handfuls of posts on Twitter and half of them are mine.  I feel sorry for all the merchants that were affected by this.  I would be livid if I spent I.T. time and money integrating Blispay into my business and then had the rug pulled out from under me.  I would be even more ticked if I had just spoken with my Blispay account manager on the phone and she basically lied by omission.  Right to my face, when they KNEW this was coming.

And I also feel bad for those that are going to try to use their cards before checking their email.  It would be embarassing to have your card declined at restaurant with business associates or at a 24 hour bookstore.

[DaveInAZ]

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@core wrote:

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@JamP wrote:
The firestorm is just starting on Twitter and Facebook.

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Actually I am surprised how quiet it is out there still.  I can only locate a couple handfuls of posts on Twitter and half of them are mine.  I feel sorry for all the merchants that were affected by this.  I would be livid if I spent I.T. time and money integrating Blispay into my business and then had the rug pulled out from under me.  I would be even more ticked if I had just spoken with my Blispay account manager on the phone and she basically lied by omission.  Right to my face, when they KNEW this was coming.

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I'm not following how this would be bad for merchants - for the vast majority of businesses they incure the same swipe fee and payment processing whether the card was issued my Blispay or Capital One, Citi, Chase. etc., and the vast majority of customers who were planning on using a Blispay card will just use one issued by the other guys.

[Anonymous]

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@DaveInAZ wrote:

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@core wrote:

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@JamP wrote:
The firestorm is just starting on Twitter and Facebook.

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Actually I am surprised how quiet it is out there still.  I can only locate a couple handfuls of posts on Twitter and half of them are mine.  I feel sorry for all the merchants that were affected by this.  I would be livid if I spent I.T. time and money integrating Blispay into my business and then had the rug pulled out from under me.  I would be even more ticked if I had just spoken with my Blispay account manager on the phone and she basically lied by omission.  Right to my face, when they KNEW this was coming.

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I'm not following how this would be bad for merchants - for the vast majority of businesses they incure the same swipe fee and payment processing whether the card was issued my Blispay or Capital One, Citi, Chase. etc., and the vast majority of customers who were planning on using a Blispay card will just use one issued by the other guys.

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I believe what they are referring to is the store credit-related financing that Blispay advertised. The link is below. Essentially at the top of their webpage there was an apply, merchant, and login tab. Below is a link to the merchant tab, for "integrating Blispay" into a point-of-sale financing option to turn lookers into buyers, per the verbiage on their site.

To me, this sounds like an alternative version of store cards (Comenity Kay's card for example), when the salesperson states that you "can get 0% for x-amount of time if you purchase this with our in-store financing."

https://blispay.com/merchants

[UncleB]

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@DaveInAZ wrote:

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@core wrote:

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@JamP wrote:
The firestorm is just starting on Twitter and Facebook.

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Actually I am surprised how quiet it is out there still.  I can only locate a couple handfuls of posts on Twitter and half of them are mine.  I feel sorry for all the merchants that were affected by this.  I would be livid if I spent I.T. time and money integrating Blispay into my business and then had the rug pulled out from under me.  I would be even more ticked if I had just spoken with my Blispay account manager on the phone and she basically lied by omission.  Right to my face, when they KNEW this was coming.

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I'm not following how this would be bad for merchants - for the vast majority of businesses they incure the same swipe fee and payment processing whether the card was issued my Blispay or Capital One, Citi, Chase. etc., and the vast majority of customers who were planning on using a Blispay card will just use one issued by the other guys.

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Blispay provided an instant account number so purchases could be made immediately upon approval (you can access the full account number, exp date, and CVV using the app). 

It was an option that had the advantages of a PLCC but was simpler to implement, which was the main selling point for small businesses.