does anyone know where/how i can find the requirements for starting a credit card company?

Question

I guess I should add, in response to some of my responses (LOL) that I have no intention of starting a credit card company. I'm just doing research on *how*, and everywhere I've looked I haven't been able to find information about it.

any information, actually, just on how the process works, and how a bank goes about becoming a credit card company, would be incredibly helpful.

Answer 1

You would first have to start your own bank. After you open you have to attract customers to start taking deposits. Once you have many customers and large cash reserve, you can start lending money out in the form of loans. Once you raise enough money from loans, you can start issuing credit card if you want, but you'd have to partner with Visa or Mastercard. It's a very complicated and long process to start issuing credit cards.

Answer 2

Just by you asking the question tells me you most likely do not have any experience in the credit card industry.
Let me give you an example of the scope you are talking about. A large bank in Cleveland, OH, with over 100 billion in assets and 20,000+ employees stopped issuing Visa and Mastercards, as it was too expensive for them and they did not have economies of scale to run that business.
Oh, I forgot, before opening a credit card business you would need to open a bank, or buy one. Good luck.

Answer 3

You're opening up a BIG can of worms! A financial institution has many rules and regulations regarding how it can operate and the operation of that entity is regulated in wach of the 50 states, Guam, Puerto Rico, and other U.S. territories.

You can start by looking up information on your state's Secretary of State website (Google it). Then, look up the IRS rules at www.irs.gov. Then look up associated laws and regulations on the Treasury Department's website (www.ustreas.gov). You'll find other resources on those sites, and if you're STILL interested in starting a credit card company after all that, start talking with Lawyers and companies who specialize in running financial institutions.

Wow.

Answer 4

You CAN'T open a credit card company, PERIOD. If you are not already in the financial services industry, you can't issue credit cards. If you were, you wouldn't ask us Yahoo's about opening ANY new business.

Answer 5

Credit card "companies" are large banks and financial companies such as GMAC.

Answer 6

nope but we can go in it together. BIG MONEY