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diff --git a/blog/2022-08-31-privacy.com-changes.org b/blog/2022-08-31-privacy.com-changes.org index 9cf23c6..c734a5e 100644 --- a/blog/2022-08-31-privacy.com-changes.org +++ b/blog/2022-08-31-privacy.com-changes.org @@ -1,92 +1,110 @@ -+++ -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. +#+title: Concerning Changes on Privacy.com +#+date: 2022-08-31 + +** Privacy.com Changes Their Terms +:PROPERTIES: +:CUSTOM_ID: privacy.com-changes-their-terms +:END: +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. + +[[https://privacy.com/commercial-cardholder-agreement][You can view the +new cardholder agreement here]]. + +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 +:PROPERTIES: +:CUSTOM_ID: changing-from-a-prepaid-debit-model-to-a-charge-card-model +:END: +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 +:PROPERTIES: +:CUSTOM_ID: daily-payments-and-available-credit +:END: +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 +#+begin_quote +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. + +#+end_quote + +*** Personal Information +:PROPERTIES: +:CUSTOM_ID: personal-information +:END: +Now that Privacy.com is more of a financial institution, they are +obligated to comply with the +[[https://en.wikipedia.org/wiki/Know_your_customer][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 +:PROPERTIES: +:CUSTOM_ID: fees +:END: +Luckily, the fees section did not change much. The subscription fees for +a premium account are still the only fees. + +** My Thoughts +:PROPERTIES: +:CUSTOM_ID: my-thoughts +:END: +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. +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 +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. |