Amazon in talks with JPMorgan Chase to offer checking accounts

[brooklynite]

Source: KTRK TV

The online retail store Amazon is in talks with big banks about creating a checking account for its customers.

According to the Wall Street Journal, the online retailer is exploring the idea with JP Morgan Chase and Capital One Financial. The goal is to appeal to younger customers and those without credit or bank accounts.

Offering such a product would allow Amazon to draw new customers and cut down on fees it currently pays to banks for handling credit and debit card transactions.

In 2017, Amazon purchased the grocery chain Whole Foods in an attempt to break into the grocery industry.

Read more: http://abc13.com/business/amazon-planning-to-offer-checking-accounts/3182431/

[bucolic_frolic]

1. I'm not a big fan

of Amazon, and still think they will founder on the grocery business because there are local competitors everywhere, consumers like to feel the merchandise, and the temptation to cut corners on size, quality, freshness, count will prove either too tempting or too necessary for profitability.

I need Amazon so I can write a check or use a debit card? I don't think so.

[FakeNoose]

6. It's probably just for the un-banked

Believe it or not there are still lots of people in the USA who don't have a bank checking account, debit or credit card. They're called "un-banked," and their transactions are all in cash.

How do un-banked people participate in sales over the internet? It's not easy unless they go to Walmart and pay cash for a Visa Debit card, which many of them do. Except the transaction fees are ridiculously high for those types of cards. It sounds like Amazon is trying to invent a new solution that doesn't involve giving your cash to Walmart.

This is how PayPal started out, by the way. Now PayPal (owned by E-bay) is locked in with Visa/Mastercard so Amazon needs a new solution for the un-banked. Anybody who already has a bank credit or debit card doesn't need to worry about this. It's not for you.

[bucolic_frolic]

8. Interesting, thanks

Paypal was owned by eBay. They are separate companies now, since a couple years ago. eBay has announced it is aligned with a European (I think) payment system and will ditch PayPal within 2-3 years. There are supposed to be savings for sellers and buyers. But since the USPS continues to raise fees at an astronomical rate (which was supposed to stop once their health care backlog was paid), it won't make much difference. In the early internet years, pre-2015, it was usually cheaper to buy on eBay at least for small items. Now it's often cheaper to go to the retail store, Walmart included. eBay purchases are more a convenience or availability purchase than the best price in town.

[FakeNoose]

9. Right, E-bay isn't what it used to be

When E-bay started out it was fun, easy and it reminded me of a cooler version of a neighborhood flea market. Those days are long gone however, and now it's just another avenue for ripoff artists. When E-bay went to requiring that all transactions had to be completed in PayPal, that's when I quit them for good, I think it was about 10 years ago (?). I'll admit that my familiarity is somewhat dated.

Sending money via the US Postal Service is basically like getting them to write a check for you, am I right? A money order from the USPS is like "wiring" money except it's an actual piece of paper that they will exchange for cash. It's been many years since I've used money orders but I do remember that it was convenient as long as you're near a post office. Un-banked people can do this as long as they're able to show ID to get the money order cashed. Showing ID is sometimes a problem though, for illegal immigrants or people who are skirting the law. I think the Visa Debit cards like the ones sold at Walmart do not require showing an ID, but I could be wrong about that.

[bucolic_frolic]

10. That's all spot on

USPS MO's are seamless, but no one uses them. I haven't had any payments outside PayPal for years and years, must be 10-12 years. Early internet days someone would send $2 in cash. That hasn't happened in 15-17 years.

What's happening now is returns and fraud. Returns, some fraudulent, were almost 10% of my gross last year. Before then, I don't think I had 2 returns in 17 years. Sellers are severely constrained by eBay, just like Amazon. Accept returns or get dinged.

Recently, LL Bean ended its 100 year lifetime money back/replacement warranty due to fraud. Said they were getting thrift store items and abused items ready for the landfill as returns. It cost them $50 million last year.

So Americans, as always, have figured out how to game the system. For themselves. It's all due for a re-shuffle.

[TheSmarterDog]

2. If Amazon can do this, why not the Post Office?

https://en.wikipedia.org/wiki/Postal_savings_system

[procon]

4. Republicans hate the post office, they've been trying to strangle it to death

for years so they can privatize it and auction off its various services to make some corporate fat cat richer. Bribes are appreciated.

[procon]

3. Amazon will rule the world.

Bezos is well on his way...

Meet Jeff Bezos, The World's Richest Person

https://www.dogonews.com/2018/1/22/meet-jeff-bezos-the-worlds-richest-person


On January 8, 2018, as Amazon Inc.’s stock soared to an all-time high of $1250 a share, its founder and CEO Jeff Bezos, who owns 17% of the company, dethroned Microsoft billionaire Bill Gates to become the world’s richest person. Since then, the company’s stock has risen an additional 20 percent, increasing the entrepreneur’s net worth from $105 billion to $125 billion! To put it in perspective, that is more than the GDP of over 125 of the world’s 195 nations.

[GoneOffShore]

5. Get thee to a credit union.

[dalton99a]

7. +1