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+date = 2022-08-31
+title = "Concerning Changes on Privacy.com"
+description = "A quick description of the recent changes of Privacy.com toward a credit card model."
++++
+
+## Privacy.com Changes Their Terms
+
+Recently, Privacy.com reached out to their customers regarding a change in their 
+terms of use. Further, all customers are required to agree to the changes in 
+order to continue using their accounts.
+
+[You can view the new cardholder agreement 
+here](https://privacy.com/commercial-cardholder-agreement).
+
+When you log in, you'll be greeted with a pop-up window asking you to review 
+and agree to the new terms of use.
+You will also not be able to open any new cards until the terms are agreed to.
+
+### Changing from a "Prepaid Debit" Model to a "Charge Card" Model
+
+The actual content of the changes is interesting. While the historical model of 
+using Privacy.com was akin to prepaid debit cards, the new model is very similar 
+to a credit card (they use the term "charge card").
+
+I have used Privacy.com for 1-2 years, and the process was always that you 
+would create a single-use or merchant-locked card.
+This card could be used for any dollar limit you set and would immediately 
+draw the funds from whatever funding source you connected, e.g. PayPal 
+account or a bank account.
+
+The benefit this service provides with a premium account is masking the merchant 
+names from your funding source. If you have a concern that your bank account 
+uses merchant data from your account, you could direct all charges through 
+Privacy.com and set the merchant as one of their pre-set options, such as 
+"Smiley's Corner Store" or "NSA Gift Shop."
+
+The new model still works with a bank account as a funding source, but the model 
+is changed so that you get a "line of credit" set according to a 14-day billing 
+cycle. It seems that Privacy.com will now allow charges to be incurred without 
+being immediately paid.
+
+### Daily Payments and Available Credit
+
+Instead of paying as charges are incurred, you must make a "Daily Payment" and 
+your "Available Credit" will be locked until you make that payment. There are 
+also "End of Billing Cycle Payments" that are assigned a due date.
+
+Further, Privacy.com will decline charges that would cause you to exceed your 
+Available Credit or Credit Limit.
+
+One particular interesting section states the following:
+
+> YOUR OBLIGATION TO PAY US BACK FOR ALL CARD TRANSACTIONS AND OTHER OBLIGATIONS 
+> YOU INCUR IS SECURED BY THE SECURED ACCOUNT. IF YOU DO NOT PAY US BACK FOR ANY 
+> AMOUNT YOU OWE US WHEN YOUR PAYMENTS ARE DUE, WE WILL EXERCISE OUR INTEREST 
+> AND DEBIT THE SECURED ACCOUNT, AND YOU WILL LOSE THE MONEY IN THE SECURED 
+> ACCOUNT. SEE SECTION 8: SECURITY AGREEMENT FOR MORE INFORMATION.
+
+### Personal Information
+
+Now that Privacy.com is more of a financial institution, they are obligated to 
+comply with the [know your 
+customer](https://en.wikipedia.org/wiki/Know_your_customer) guidelines/laws. 
+
+I did not proceed with the change to my Privacy.com account, but I have heard 
+from some peers that the changes require more personal information to be 
+submitted, such as SSN. I am not aware of all new personal information required 
+or if the funding source is now required to only be a bank account.
+
+### Fees
+
+Luckily, the fees section did not change much. The subscription fees for a 
+premium account are still the only fees.
+
+## My Thoughts
+
+Personally, I wiped my personal information from my account and then permanently 
+deleted it when I heard about these changes. I have no interest in yet another 
+method of credit lending offered by private companies. While I accepted that 
+they would have access to my bank account information for the purposes of paying 
+off my prepaid debit payments, I have no interest in incurring charges that will 
+need to be paid back at a later date. I also have no interest in submitting 
+personal information to Privacy.com.
+
+This type of change toward a "buy it now, pay us later" model is concerning, 
+and I will be watching Privacy.com to see if they further their interests in 
+the credit model as time goes on.
+
+Could we see them start charging interest, fees, etc.? I'm not sure, but 
+this change does not inspire confidence in their mission as a 
+privacy-focused company.