Small credit card firm??

I'm wondering,

I had an idea, how would you create your own credit card firm, giving out your money via plastic? Oviouslly charging interest.. just like the banks (UK by the way).

Can anyone help?

 

for doing this you would need bank license or depend on location where business would be set up, but this can be set up

 

You cannot do this unless you operate a bank.
Or if you still want to do this,you can use co branded with the participant bank.

 

Yes, I read you need an FSA(I think?) license as you'll be handling peoples money. What do you mean 'Co branded'

 

You would need to be licenced and regulated and unless you have a ton of money it simply won't be possible. Look at what Virgin are having to do in their attempt to open a UK bank. It was easier for them to purchase an existing small bank to get a banking licence than it was for them to attempt to do it all from scratch, and Virgin aren't exactly short of cash or smarts.

Co-branding is where another bank underwrites and issues the credit card with your name on it - like the Virgin or Tesco credit cards which are actually owned and operated by a bank (MBNA in the case of Virgin) not the brand. XCredit card companies are unlikely to allow co-branding unless you can guarantee a minimum level of business, although I've no idea what this level would be.

 

GE capital will co-brand your business with a creditcard if you meet there qualifications.

 

I don't get this website.

 

sorry it was GE Money, the business financial division http://www.gemoney.com/en/index.html

 

yes, i actually stated that i wanted to do it in the uk.

 

I think you should have a bank, although a small bank but the bank if you are working with major banks I think you can issue credit cards.

 

It is called being a loan shark.

 

co-branding is popular and can bring in extra revenue for a business. both a local mechanic and book store have their own branded credit cards that people can apply for. neither have serious revenue coming in, but the cards do not have to be used just at the store, they are valid everywhere! so basically i think anyone can co-brand a card if you have a popular theme, etc. i used to see credit cards with World of Warcraft graphics advertised on tv...

 

And do you have any idea of how to do it?

 

If you send me money gram to my Nigerian Affiliates I'll tell you j/k but in all seriousness, it would take 100s of millions USD to start and be a success in a CC set up - especially with western banking regulations.