118118 Money - Actually not terrible?

[Deleted User]

WillPS said:

Deleted_User said:

WillPS said:

Deleted_User said:

WillPS said:

Deleted_User said:

Stuart_W said:

I don't think it is just restricted by age. Due to the fee structure (or fee-less structure) they are looking for account holders they reckon they can make money out of.

I've only got a couple of cards at the moment, neither fully utilised and both cleared in full monthly, reasonable salary and no mortgage left. 118 aren't interested in me. That's not an affordability decision, it is a profit-based one. They probably reckon I would only use it for 0% cash withdrawals. They'd be right.

Card companies make money out of anyone who holds the card and uses it, it's a commonly believed myth that firms want people who will not pay back in full to make money, in fact, they make plenty from merchant fees

The interchange fee is capped at 0.3% - that's the total that Mastercard can possibly charge on any domestic transaction - the comission they will pay to the issuer might be half that (but we know it will not be more than 0.3% of the txn value).

To put that in to perspective, the cost of putting a piece of paper in the post is about 50p, so if we assume the issuer gets 0.2% the customer has to spend £250 before they have even made back the 50p cost of postage on sending the card out - not including the cost of having a card printed.

So as I said, they make money from the fees? There are other ways they make money like clearing/settlement fees, international payments on card etc. Mastercard made $8.7 billion in 2020 from transaction processing fees

Again, it is a myth that firms require/only want customers who will not pay the money back in full every month

Mastercard are not a credit lender.

Credit lenders do not make profits from customers who charge small amounts to their card and pay off in full. When you factor in the low credit limits on these cards, the potential revenue from txn fees alone is miniscule.

OK mate, the $8.7bn they make from transaction fees (i.e. fees when customers use the card, completely separate from their other revenue) is miniscule

You're conflating card issuers (as in the people who actually determine who should get a card) with card networks (the ones who just perform the transaction, with no risk assesment whatsoever).

It's not helpful in the context of a discussion about one card issuer.

The post I replied to was specifically about Mastercard not card issuers

If you want to take about one card issuer, card firms charge typically 1.75% of every transaction as the merchant fee (i.e. interchange rate), they make great income from customers who spend on their cards and pay back in full, just as they do from interest. We use Paypal for card processing as an example, for a £450 inc vat bill, we pay paypal £13.35. In the US looking at the numbers for their biggest banks, up to 1/3 of their income in 2019 was from the interchange income. As I said, banks make serious money from users who pay 0 interest. 

WillPS

Deleted_User said:

WillPS said:

Deleted_User said:

WillPS said:

Deleted_User said:

WillPS said:

Deleted_User said:

Stuart_W said:

I don't think it is just restricted by age. Due to the fee structure (or fee-less structure) they are looking for account holders they reckon they can make money out of.

I've only got a couple of cards at the moment, neither fully utilised and both cleared in full monthly, reasonable salary and no mortgage left. 118 aren't interested in me. That's not an affordability decision, it is a profit-based one. They probably reckon I would only use it for 0% cash withdrawals. They'd be right.

Card companies make money out of anyone who holds the card and uses it, it's a commonly believed myth that firms want people who will not pay back in full to make money, in fact, they make plenty from merchant fees

The interchange fee is capped at 0.3% - that's the total that Mastercard can possibly charge on any domestic transaction - the comission they will pay to the issuer might be half that (but we know it will not be more than 0.3% of the txn value).

To put that in to perspective, the cost of putting a piece of paper in the post is about 50p, so if we assume the issuer gets 0.2% the customer has to spend £250 before they have even made back the 50p cost of postage on sending the card out - not including the cost of having a card printed.

So as I said, they make money from the fees? There are other ways they make money like clearing/settlement fees, international payments on card etc. Mastercard made $8.7 billion in 2020 from transaction processing fees

Again, it is a myth that firms require/only want customers who will not pay the money back in full every month

Mastercard are not a credit lender.

Credit lenders do not make profits from customers who charge small amounts to their card and pay off in full. When you factor in the low credit limits on these cards, the potential revenue from txn fees alone is miniscule.

OK mate, the $8.7bn they make from transaction fees (i.e. fees when customers use the card, completely separate from their other revenue) is miniscule

You're conflating card issuers (as in the people who actually determine who should get a card) with card networks (the ones who just perform the transaction, with no risk assesment whatsoever).

It's not helpful in the context of a discussion about one card issuer.

The post I replied to was specifically about Mastercard not card issuers

If you want to take about one card issuer, card firms charge typically 1.75% of every transaction as the merchant fee (i.e. interchange rate), they make great income from customers who spend on their cards and pay back in full, just as they do from interest. We use Paypal for card processing as an example, for a £450 inc vat bill, we pay paypal £13.35. In the US looking at the numbers for their biggest banks, up to 1/3 of their income in 2019 was from the interchange income. As I said, banks make serious money from users who pay 0 interest. 

Now you're bringing merchant bankers in to the mix! It doesn't matter how much the merchant bank charge their clients for their services, they don't pay the card issuers anything directly on a per transaction basis - the only revenue card issuers will get is derived from the interchange fee which is capped at 0.3%.

Nobody is going to argue that Visa and Mastercard make money hand over fist. 

jasonwatkins

I've just been given a pre-approved application for a 118118 Credit Card but it refuses point blank to accept any bank details which is rather irritating.   Ringing the call centre is akin to hammering nails into your skull as well ..

Do they only accept certain bank accounts ?

eskbanker

jasonwatkins said:

I've just been given a pre-approved application for a 118118 Credit Card but it refuses point blank to accept any bank details which is rather irritating.   Ringing the call centre is akin to hammering nails into your skull as well ..

Do they only accept certain bank accounts ?

In what context are you looking for them to accept bank details?  Which bank are you referring to?

jasonwatkins

eskbanker said:

jasonwatkins said:

I've just been given a pre-approved application for a 118118 Credit Card but it refuses point blank to accept any bank details which is rather irritating.   Ringing the call centre is akin to hammering nails into your skull as well ..

Do they only accept certain bank accounts ?

In what context are you looking for them to accept bank details?  Which bank are you referring to?

On the application screen to fill out my details to accept this offer, I have to verify my mobile number, verify my bank details and then read and sign all the various credit agreements before clicking “accept”.

I tried my Starling account, Revolut and even opened a basic account with the Halifax and used that and nothing was accepted.

It’s either a glitch or I was never meant to get the offer in the first place.

[Deleted User]

jasonwatkins said:

I've just been given a pre-approved application for a 118118 Credit Card but it refuses point blank to accept any bank details which is rather irritating.   Ringing the call centre is akin to hammering nails into your skull as well ..

Do they only accept certain bank accounts ?

When I signed up in June 2020 the application wouldn't accept my Starling Bank details so had to use my backup Lloyds account. Since they released a new App I've since been able to update my DD details to Starling.

jasonwatkins

Deleted_User said:

jasonwatkins said:

I've just been given a pre-approved application for a 118118 Credit Card but it refuses point blank to accept any bank details which is rather irritating.   Ringing the call centre is akin to hammering nails into your skull as well ..

Do they only accept certain bank accounts ?

When I signed up in June 2020 the application wouldn't accept my Starling Bank details so had to use my backup Lloyds account. Since they released a new App I've since been able to update my DD details to Starling.

That's interesting, thanks.

I did apply for a basic bank account at HSBC as well as the Halifax one, but if Lloyds works I suppose I could always try that as well.

It's not the end of the world if I can't get this card really.  I've got an Aqua one that I've managed pretty well and had a decent credit limit increase as well, but I thought this one might help with the credit rating overall.

[Deleted User]

jasonwatkins said:

Deleted_User said:

jasonwatkins said:

I've just been given a pre-approved application for a 118118 Credit Card but it refuses point blank to accept any bank details which is rather irritating.   Ringing the call centre is akin to hammering nails into your skull as well ..

Do they only accept certain bank accounts ?

When I signed up in June 2020 the application wouldn't accept my Starling Bank details so had to use my backup Lloyds account. Since they released a new App I've since been able to update my DD details to Starling.

That's interesting, thanks.

I did apply for a basic bank account at HSBC as well as the Halifax one, but if Lloyds works I suppose I could always try that as well.

It's not the end of the world if I can't get this card really.  I've got an Aqua one that I've managed pretty well and had a decent credit limit increase as well, but I thought this one might help with the credit rating overall.

If you really want the card, just sign up with your Lloyds details then once you have your card etc, just download the 118Money mobile app and change the DD details.

My credit rating is shot due to a CCJ and 2 defaults which don't drop until 2024 and I have 8 credit building cards: Cap1, Luma, Zopa, Barclaycard Forward, Tesco Foundation, Virgin Money, Marbles (which is same as Aqua) and 118.

jasonwatkins

Deleted_User said:

jasonwatkins said:

Deleted_User said:

jasonwatkins said:

I've just been given a pre-approved application for a 118118 Credit Card but it refuses point blank to accept any bank details which is rather irritating.   Ringing the call centre is akin to hammering nails into your skull as well ..

Do they only accept certain bank accounts ?

When I signed up in June 2020 the application wouldn't accept my Starling Bank details so had to use my backup Lloyds account. Since they released a new App I've since been able to update my DD details to Starling.

That's interesting, thanks.

I did apply for a basic bank account at HSBC as well as the Halifax one, but if Lloyds works I suppose I could always try that as well.

It's not the end of the world if I can't get this card really.  I've got an Aqua one that I've managed pretty well and had a decent credit limit increase as well, but I thought this one might help with the credit rating overall.

If you really want the card, just sign up with your Lloyds details then once you have your card etc, just download the 118Money mobile app and change the DD details.

My credit rating is shot due to a CCJ and 2 defaults which don't drop until 2024 and I have 8 credit building cards: Cap1, Luma, Zopa, Barclaycard Forward, Tesco Foundation, Virgin Money, Marbles (which is same as Aqua) and 118.

I don't have Lloyds yet, so I'd have to try and open one.

My credit rating is bad enough that I actually get refused Capital One, Zuma and the others

jijfacejames

I would avoid this company like a barge pole.They are constantly harassing me for a underpayment of £1.Text messages,emails,phone calls constantly everyday.They now charge a late payment fee of £12 and a withdrawal fee that I knew nothing about but everyone was informed of.They charge you £8 a month for £200 and I think it was £38 a month for £500 even if you don’t use it .Out of principle I have not paid this £1 for a month as I paid my minimum payment that was on the app to pay.I have never been so harassed for money in my life ….the threats are madness for £1 .Will we damage your credit score , we will pass you to our director of collections.The things they are doing for £1 is disgusting anyone that is struggling to pay does not need this harassment.I made a complaint 111 in queue I put that was suicidal about all this and noone phoned to check I was ok the chat was just left .What they are doing I’m sure is wrong,someone who is struggling will eventually snap.I phoned up to speak to them and complain to find there were two options one was to pay the other was to talk to someone about struggling. I pressed option 2 and it took me right back to the original message ,so the only option was to pay .Trying to get to speak to someone is impossible and when they do they don’t understand you and just don’t care .Although I paid this month on time they added another £12 charged…..I messaged them on live chat ….someone came into the chat after waiting to look at the message and just end the chat ……they just can’t be bothered.I would not go with these people there are no benefits to them over any other card and if you don’t spend on them they can work out more expensive that a credit card and if you ever go over your limit by as little as £1 you will be in for constant harassment until you give in and pay it ,.,,,,