Small Business Credit Cards
Mission Statement
We want to create a system that enables small businesses to establish a customer credit account and run rewards/discounts/advertising/coupons/percentages etc. We imagine several types of business customers:
- local grocery stores (like Detwiler and smaller) - regular grocery purchases.
- restaurants, bars - return customers
- plumbers, electricians, auto repairs, furniture store - a special case is a credit for an unexpectedly large amount.
- B2B customer credit.
We can help with the credit policies and all the transactional mechanics around payments, including wire transfers.
Our business clients issue credit lines to their customers, and we facilitate the credit account, payments from the credit line, and credit payments etc.
So, the customer can pay for the goods/services using his credit line by QR code on his phone or by identifying himself by ID or phone/email (using a One-Time Pin code).
We will bill the customer (electronically) and keep the account, providing information and statistics to the business issuing the credit line.
Mission Objective
Establish a line of credit
To establish the line of credit we allow to:
- apply in-store using the QR core (possibly by downloading an app);
- apply online (website);
- collect customer information, and confirm/check that this information is correct;
- run customer credit scores with several credit score agencies;
- save a photo of both sides of picture ID (DL) and check that it is indeed an ID;
- request customer to sign policies (DocuSign) and keep those photo ID and signed policies associated with the customer;
We help to establish a highly customizable line of credit. Customization includes but is not limited to
- setup credit limit according to predefined rules and customer credit score;
- tunable rewards program (selected from a-la-carte menu);
- tunable trade discount (for example 1-2% discount if paid over 10 days - may be interesting for B2B);
- several customers sharing the credit line (family or small business);
- allow to merge/split a joint account (family or small business);
- enable to increase the credit limit by request of the customer at the business owner’s discretion;
Provide expected credit line service.
We are looking to support domestic operations first, but we will implement all the standard minimal necessary rules, which may enable our credit lines abroad.
All international requirements will be implemented when domestic requirements are satisfied, and in the following order: Canada, Mexico and Latin America, Asia, and Europe.
We can request the signing of updated policies and will keep them on the account file.
Transaction support
We need to be able to support the credit lines we’ve established and provide standard expected credit line services. It includes, but is not limited to:
- transaction might be initiated by the QR code from the seller (credit line issuer) or credit line holder;
- if the seller (credit line issuer) allows, a transaction can be initiated by ID, phone or email (with OTP);
- transaction from the website of the issuer can be made with OTP by phone or email;
- we would not support transactions with cashback (why not?);
- transaction processing (approve, deny, discard);
- provide fraud protection by analyzing transaction history/patterns/current customer location/etc;
- compute balance and available credit for customers;
- provide transaction history;
- provide yearly/monthly transaction summary;
- compute integrated summaries and scores for small businesses established those credit lines with the ability to dig into details;
- compute rewards for customers;
- provide rewards information for issuers (small businesses);
- provide periodic (monthly, weekly, biweekly, daily, settable) bills, add per cent accrual according to the credit line rules, compute minimum payment (should allow to pay debt in full);
- enable customers to pay those bills using wire transfers, or, possibly, other means (crypto, Venmo, PayPal, mailing checks etc);
- provide IRS forms for small businesses issued lines (1099’s or anything else);
- provide any other documentation/forms required by IRS;
- provide transaction classification for enabling different rewards on different transactions and explanation/editing tools for customers;
- provide compliance checks to comply with government rules and laws;
- periodically provide all necessary forms and IRS documentation for issuers/holders.
- transaction processing should be cheap, fast, and with “white label”.
- provide year-end summaries optimized for tax purposes;
Self-service portal for line issuers (small businesses) to manage credit line types and individual credit lines
Self-service portal for credit line holders
- web-based version for desktops and mobiles, Android and iOS apps;
- the holder can use the branded web/app and see only lines from one issuer or can use Ravenbill app and see all the lines he has that Ravenbill is processing.
- allow applying for a new credit line with issuer-specific URL (shortcut version?, scan driver license);
- allow to manage credit line transactions, see bills, balance, summary, and rewards;
- allow to see transactions (summary and details by date range);
- see and correct (to some degree) transaction classification, transaction processing should learn on these corrections;
- allow to track rewards (summary and details by date range);
- allow to close the account;
- holders portal should have an issuer-defined design;
- line holder can have several credit lines connected to one billing account (family or company can have several lines, but one account. Particular line information should be visible on statements. Credit line account owners can set up different rules/limits on different cards - for example daily limit, one purchase limit, cash limit etc.)
- if holder have several of our credit lines he can switch between them (as Barclay does);
- provide year-end summaries optimized for tax purposes.
Self-service for Ravenbill to manage the credit accounts
- web-based version for desktops and mobiles, Android and iOS apps;
- provide year-end summaries optimized for tax purposes;
- allow to see transactions (summary and details by date range and by credit card);
- allow to track rewards (summary and details by date range and by credit card);
- allow to see profit/loss (summary and details by date range and by credit card).
Addressing problems
We want to find partners for “what we would not do” and for “what we do not know how to do”.
What we would not do
We may discuss to redirect/outsource it if issuers want to provide these services.
- live customer support phone service (robot + async processing if needed - I need a separate description of what and how it does);
- paper statements (unless we outsource them without losing security - for example to issuers and we will provide PDFs, addresses/postal envelope PDFs and other electronic assistance for such bills);
- we would not do “pay with the plan” for a particular purchase as Chase does (at least for now);
- we would not suggest a balance transfer (at least for now);
- we would not support offline transaction processing (paper imprints);
- we would not support transactions with cashback (why not?).
What we do not know how to do
- dispute transaction process (60 business days)
Further Links