cmc/cleberg.net

 1#+date:        [2022-08-31 Wed 00:00:00]
 2#+title:       Privacy.com Changed the Product, Not the Name
 3#+description: Privacy.com changed their terms. Here's what that means.
 4#+slug:        privacy-com-changes
 5#+filetags:    :privacy:
 6
 7* Privacy.com Changes Their Terms
 8
 9Recently, Privacy.com reached out to their customers regarding a change in their
10terms of use. Further, all customers are required to agree to the changes in
11order to continue using their accounts.
12
13[[https://privacy.com/commercial-cardholder-agreement][You can view the new cardholder agreement here]].
14
15When you log in, you'll be greeted with a pop-up window asking you to review and
16agree to the new terms of use. You will also not be able to open any new cards
17until the terms are agreed to.
18
19** Changing from a "Prepaid Debit" Model to a "Charge Card" Model
20
21The actual content of the changes is interesting. While the historical model of
22using Privacy.com was akin to prepaid debit cards, the new model is very similar
23to a credit card (they use the term "charge card").
24
25I have used Privacy.com for 1-2 years, and the process was always that you would
26create a single-use or merchant-locked card. This card could be used for any
27dollar limit you set and would immediately draw the funds from whatever funding
28source you connected, e.g. PayPal account or a bank account.
29
30The benefit this service provides with a premium account is masking the merchant
31names from your funding source. If you have a concern that your bank account
32uses merchant data from your account, you could direct all charges through
33Privacy.com and set the merchant as one of their pre-set options, such as
34"Smiley's Corner Store" or "NSA Gift Shop."
35
36The new model still works with a bank account as a funding source, but the model
37is changed so that you get a "line of credit" set according to a 14-day billing
38cycle. It seems that Privacy.com will now allow charges to be incurred without
39being immediately paid.
40
41** Daily Payments and Available Credit
42
43Instead of paying as charges are incurred, you must make a "Daily Payment" and
44your "Available Credit" will be locked until you make that payment. There are
45also "End of Billing Cycle Payments" that are assigned a due date.
46
47Further, Privacy.com will decline charges that would cause you to exceed your
48Available Credit or Credit Limit.
49
50One particular interesting section states the following:
51
52#+begin_quote
53YOUR OBLIGATION TO PAY US BACK FOR ALL CARD TRANSACTIONS AND OTHER
54OBLIGATIONS YOU INCUR IS SECURED BY THE SECURED ACCOUNT. IF YOU DO NOT
55PAY US BACK FOR ANY AMOUNT YOU OWE US WHEN YOUR PAYMENTS ARE DUE, WE
56WILL EXERCISE OUR INTEREST AND DEBIT THE SECURED ACCOUNT, AND YOU WILL
57LOSE THE MONEY IN THE SECURED ACCOUNT. SEE SECTION 8: SECURITY AGREEMENT
58FOR MORE INFORMATION.
59#+end_quote
60
61** Personal Information
62
63Now that Privacy.com is more of a financial institution, they are obligated to
64comply with the [[https://en.wikipedia.org/wiki/Know_your_customer][know your customer]] guidelines/laws.
65
66I did not proceed with the change to my Privacy.com account, but I have heard
67from some peers that the changes require more personal information to be
68submitted, such as SSN (Social Security Number). I am not aware of all new
69personal information required or if the funding source is now required to only
70be a bank account.
71
72** Fees
73
74Luckily, the fees section did not change much. The subscription fees for a
75premium account are still the only fees.
76
77* My Thoughts
78
79Personally, I wiped my personal information from my account and then permanently
80deleted it when I heard about these changes. I have no interest in yet another
81method of credit lending offered by private companies. While I accepted that
82they would have access to my bank account information for the purposes of paying
83off my prepaid debit payments, I have no interest in incurring charges that will
84need to be paid back at a later date. I also have no interest in submitting
85personal information to Privacy.com.
86
87This type of change toward a "buy it now, pay us later" model is concerning, and
88I will be watching Privacy.com to see if they further their interests in the
89credit model as time goes on.
90
91Could we see them start charging interest, fees, etc.? I'm not sure, but this
92change does not inspire confidence in their mission as a privacy-focused
93company.