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Canadian Town wants in on the Credit Card business

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Canadian Town wants in on the Credit Card business

https://globalnews.ca/news/6283911/town-of-gibbons-considers-credit-card/

 

The plan would see the town partnering with a lender that has ties to a major credit card. Gibbons would be the primary cardholder and would then issue cards to Gibbons homeowners.

At the end of every month, the town would pay off all the collective bills. It would borrow money at the Bank of Canada’s overnight rate, which is currently 1.75%. This would ensure no interest payments would be sent to the credit card company guaranteeing the card.

 

Cardholders would then pay the town what they owe. All interest from any outstanding balances would go to Gibbons, instead of Visa or MasterCard.





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Re: Canadian Town wants in on the Credit Card business


@RealityBites wrote:

https://globalnews.ca/news/6283911/town-of-gibbons-considers-credit-card/

 

The plan would see the town partnering with a lender that has ties to a major credit card. Gibbons would be the primary cardholder and would then issue cards to Gibbons homeowners.

At the end of every month, the town would pay off all the collective bills. It would borrow money at the Bank of Canada’s overnight rate, which is currently 1.75%. This would ensure no interest payments would be sent to the credit card company guaranteeing the card.

 

Cardholders would then pay the town what they owe. All interest from any outstanding balances would go to Gibbons, instead of Visa or MasterCard.


Sounds like a formula for disaster. I hope they reconsider.

 

 


Total revolving limits 646000 (570000 reporting)



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