ChargeSmart

ChargeSmart, LLC

Type	Private
Industry	Personal finance, Software, Consumer Internet, Credit Cards, Mortgage, Online payments
Founded	2008
Headquarters	San Francisco, California
Key people	Philip Mikal, COO Mitch Friedman, Co-Founder
Products	Credit card funded bill payment services
Revenue	N/A
Website	chargesmart.com

ChargeSmart is a web-based e-commerce business allowing credit card funded bill payments to be made through the Internet. ChargeSmart serves as an alternative payment channel for companies in the mortgage, auto, student and utility industries that do not want to directly offer credit card payment as an option to their customers.

ChargeSmart has garnered media coverage from a number of blogs and media outlets such as Business Week,^[1] the San Francisco Business Times,^[2] Banks.com,^[3] InsideARM,^[4] American Banker,^[5] and the Sacramento Bee.^[6]

The company is located in San Francisco, California.

Background

ChargeSmart COO Philip Mikal was previously co-founder of another San Franscisco-based company, CardIt. CardIt attempted to launch a similar payment service in September 2007 and targeted one-time consumer mortgage payments. CardIt is no longer in business and, according to Housing Wire, had difficulties for catering to troubled mortgage borrowers^[7]. Mr. Mikal joined ChargeSmart as Chief Operating Officer August 11, 2008.^[8].

Based on several test transactions, the transaction fee plus insurance fee seems to come to 2.5% of the transaction, which means that the fees will outweigh the value of the "rewards" received on most credit cards.

See also

• United States housing bubble
• 2007 Subprime mortgage financial crisis

References

1. ^ Silver-Greenberg, Jessica (August 14, 2008). "Just Charge That Mortgage". Business Week,. http://www.businessweek.com/magazine/content/08_34/c4097whatsnex194316.htm?chan=magazine+channel_what's+next. 
2. ^ Calvey, Mark (July 11, 2008). "ChargeSmart lets customers put house payments on plastic". American City Business Journals,. http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2008/07/14/story6.html. 
3. ^ Morrison, Hayli (July 21, 2008). "ChargeSmart Is New Kid On Credit Card Bill Pay Block". Banks.com. http://www.banks.com/blogs/credit/2008/07/21/chargesmart-is-new-kid-on-credit-card-bill-pay-block/. 
4. ^ Britt, Phil (July 10, 2008). "New Program Allows Consumers to Pay Mortgage with Credit Cards". Kaulkin Media. http://www.insidearm.com/go/arm-news/new-program-allows-consumers-to-pay-mortgage-with-credit-cards. 
5. ^ "New Pay Options, Old Criticism". July 18, 2008. http://www.americanbanker.com/article.html?id=200807115UZ18T5D. 
6. ^ Pugh, Tony. "Finance industry encourages consumers to pay bills with plastic". McClatchy Company. http://www.sacbee.com/103/story/1164555.html. 
7. ^ http://www.housingwire.com/2008/07/09/new-service-touts-mortgage-payments-by-credit-card/
8. ^ Rauber, Elizabeth (August 11, 2008). "ChargeSmart hires chief operating officer". http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2008/08/11/daily11.html.