Posted by Chuck on November 21, 2018
Credit Cards

Published on November 21st, 2018 | by Chuck

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Blispay 2% Card Suspends Operation (Temporarily)

Blispay is a 2% credit card which also offers financing on purchases $199+ with no fees for 6 months.. They’ve just announced that they are suspending “lending”, but that means you can’t use the card at all. They call it a temporary move, probably due to lack of funds, but this doesn’t look great for the overall viability of the company. Presumably, there are too many free-floaters who take advantage of the 6 month financing and then pay off the balance without incurring fees.

A number of readers sent over this information since Blispay just emailed this out. I guess people like Blispay for the free float  or else just as another 2% card for those who maxed out the regular 2% options.



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IrateRetro
IrateRetro

Why say “(Temporarily)” in the title since you already used the word “Suspend”? Besides, you don’t have to be a genius to realize this is the END for them.

William Charles

Because that’s the verbiage blispay uses.

Frank
Frank

Ouch, this might kill them given they’ll lose all the Black Friday and thanksgiving purchases. Wonder who made that call…

Wilson
Wilson

They probably lose more money with more volume. This card is notorious for flimsy denials, likely for the same reason

SBR
SBR

Sitting out Black Friday and Cyber Monday shopping sprees might be the idea here if they have a cash crunch and can’t front the floater expenditures. This will be the time that free floaters binge on credit and then pay off their balances over the next 6 months.

-G-
-G-

The timing for this couldn’t be much worse…

SBR
SBR

I think the timing here is exactly what they were going for. If they have a cash crunch, they likely can’t front the funds necessary to cover all the Black Friday and Cyber Monday floaters who will just be looking for free financing. Best to sit it out and hope to right the ship come New Year. If they don’t, they probably won’t even make it to New Year at all.

MaxPower
MaxPower

“Temporarily”

Yeah, they are toast. I still have a card with a 7.5K limit that they suspended any buying a couple of months ago due to non-activity. Into the SK the card went.

James Hewitt
James Hewitt

They shouldnt offer that service if they dont intend on you using it, but they do because they know that most people will go in debt and not be able to pay it off in 6 mos. I have used it for 2 yrs now and have always paid it off before the 6 mos so they gave me cash back instead of making money off of me, which they didnt count on people actually doing im sure. Oh well, back to using other cards and paying off monthly.

SpC
SpC

“…which they didnt count on people actually doing….”

Pretty flimsy business model if they didn’t have a plan for excessive demand for their 6-month-no-interest policy what with how their customer base tends to use available credit. I didn’t find out about BP until last September but once approved their credit plan came in handy for some largish unexpected veterinary bills this month. Yes the balance will be paid off before the 6 months is over yet if their business folds I’ll be disappointed.

Nick
Nick

Agreed that have not worked out exactly as they have hoped, but with consumer debt on the raise and a few ‘strategic’ temporary suspensions like this one they might be able to sustain until the next crush and profit handsomely from that.

btw. How is this any more attractive than a typical 2% card though?

NinjaX
NinjaX

Blispay trying to copy RoomiPay and TRU. haha…

thats what happens when you use First Electronic Bank in Utah.

Stuno
Stuno

Am hoping that this is just temporary, but I do see how it would be hard for them to make money long term. I have my card basically maxed out all the time and as soon as one promo expires, I start a new one. So am basically just using this card for the free float. I love the concept of the card, but can see how it would be difficult to just give out interest free loans all the time.

Dylan
Dylan

The fed has been raising interest rates. I Expect to see more credit cards to reduce or eliminate their 0% offers in the near future.

SpC
SpC

“The fed has been raising interest rates….”

As well as continuing to freely print money. Why our economy is in shambles given the fiscal policies engendered by Washington.

Dylan
Dylan

The fed prints and contracts the money supply as they see fit.

Currently the monetary base currency is actually declining. At least according to usdebtclock.org

Jarred
Jarred

I think we will see this switch to a EITHER – OR card
Choose 6 months interest free – OR 2% Cash back.

Dumbfounded
Dumbfounded

Well, I am a free floater who has made payments on time. Reasoning that Blispay has no money because of the floaters is ridiculous, as we as making payments, that is steady cash flow. Blispay also makes money from sellers fees. Its the people who don’t make payment and default create the problems as the company has taken a loss on the 2% cash back all ready and not receiving any additional funds.

Ann
Ann

Credit card companies all need/expect some portion of their customers to end up paying ~20% interest for there to be enough profits. Not delinquent, just not paid-in-full before interest kicks in. Those are the people who make generous bonuses/rewards possible for those of us who do pay-in-full. If Blispay’s interest-paying customer base was too small, away they go. (And it’s been 4 months now with no un-suspension of operations…)

satori
satori

Does this mean if they go under (bankruptcy I’m assuming), do those with balances still have to pay? And to whom?

Ann
Ann

I’d expect if they stop collecting payments themselves, they would sell off any delinquent accounts to some debt collector.

Jo
Jo

Have you heard any updates about Blispay? It’s been now close to 6 months since they stopped lending, but haven’t heard any updates.

William Charles

I haven’t heard anything

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