Sep 5

MetaCard, Credit Cards for your Second Life

Category: Banking, Credit Cards, Debit Cards by Stone Culdesac

We mentioned before that there is a debit card for Second Life coming our way in 2008, now there is going to be a credit card as well. FirstMeta is launching the MetaCard, so, just like rl, you can run up a bunch of bills in sl. To get the Gold Card, you have to give them a rl credit card number, don’t worry, it’s not charged unless you default, it says, the Standard card just requires a valid mobile phone number. Hmm, I’m thinking text spam, but I guess we will find out soon enough.

The big difference I see is the percentage rate is called DPR, daily percentage rate, where, rl credit cards use APR, annual percentage rate. Over on the Techcrunch site, some of the commenters said this works out to about 60.7% annual for the 0.13% daily and 72.9% annual for the 0.15% daily rate. Wow. High rates on rl cards are around the 20% range, or at least when I last checked, so those are some high rates. Plus, you have a monthly fee unless you spent so many Lindens every month, the fee is L$300 lindens unless you spend over L$500 lindens per month, I believe. If you sign up now as a merchant, you will get the fees for the first six months waived. Those are some high rates, but there will probably be some takers, but it is good to see a bank that will actually be able to make some money and not just blow smoke up our avatars like Ginko did. Where the Second Life stock exchanges have said it’s just a game, FirstMeta is making you back up the account, at least on the Gold card, so it is tied to real world money, and the high fees should make them a few Linden while they are at it.

The MetaCard is a L$-credit card that you can charge your Second Life purchases to. Buy what you want now and pay for it later. Better still, pay us back in L$.

With the MetaCard, you can…

Increase your spending ability You never have to worry about running out of L$
Enjoy a better shopping experience No more “You need more currency” pop-ups
Enjoy greater value With our MetaRewards program, get reward points for shopping with your card

Get instant L$ Get “cash” whenever you need it
Grow your L$ Earn interest on your free MetaSavings deposit account
Be entitled to special privileges Special promotions when you shop at your favorite Second Life merchants…only for you
Have peace of mind A team of professionals working to serve you around the clock

Instead of paying L$ “cash” upfront, charge your purchases to the MetaCard. Simply right-click on the item you want and select ‘MetaCard’.

You get the item immediately. No L$ is deducted from your account.

At the end of each billing cycle, you’ll receive a statement showing how much you’ve charged to your MetaCard and the minimum payment required.

You can choose to pay off the entire bill at once or pay it off over time. Payments can be done at any of our many ATMs in-world. Interest accrues only on rolled-over balances. Source: FirstMeta

Here is how they will compute the finance charges.

Calculation of average daily balance including new purchases: Assume previous balance is $400. On the 15th of the billing cycle the customer makes a payment of $300, and on the 18th he makes a purchase of $50. The ending balance is $400 - $300 + $50 = $150. The average daily balance is: (($400 x 15 days) + ($100 x 3 days) + ($150 x 12 days)) / 30 days = $270. The monthly interest rate is applied on $270 to determine the finance charge.

From Techcrunch,

MetaCard comes in two flavors: Basic and Gold. The Basic card is subject to a avatar check and provides a credit limit of L$5000 ($18.60) per month. A Gold MetaCard offers a credit limit of L$10,000 ($37.20) per month and can only be obtained by providing real world credentials and a real life credit card for automatic payments. Interest is charged at between 0.13% and 0.15% per day, which would we roughly 54% per annum, but compounding. Payments are 2% of the total amount used plus fees outstanding at the end of the month, and users have 21 days to make their monthly payment. MetaCard holders must also spend L$500 ($1.86) per month or face a monthly maintenance fee of L$300 ($1.12). Source: MetaCard: The World’s First Virtual World Credit Card

I would get one of these just to have it, but they charge the monthly fee so I will probably skip it and wait for the debit card.

Popularity: 2%

2 Comments so far

  1. Tyra Fierrens / Aileen Sim September 26th, 2007 3:20 pm

    Hi Stone, this is Tyra / Aileen from First Meta. Thanks for your post. Just would like to clarify that the basic card doesn’t require a phone number. (Did you see that somewhere?)

    The interest rates on the cards may seem high compared to real world rates, but are actually quite reasonable given that SL deposit rates are generally 0.06%-0.14% a day (15%-65% per annum). So the spread is actually not so different from that in the RW.

    ~ tyra / aileen

  2. Jimmy Daniels September 26th, 2007 5:58 pm

    Thanks for updating me Tyra, I was pretty sure I saw it on your site, but I’ve been wrong before.

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