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Email this4:11 pm
October 21, 2013
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I received an email about this from PC Optimum points today.
https://www.pcfinancial.ca/en/pc-money-account/
I haven't bothered to look into it in any detail. On the surface at least, it didn't seem attractive.
5:55 pm
September 11, 2013
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Looks to me like it's an account you put money in and use it for spending like a debit card. Here's a comprehensive description:
https://www.moneysense.ca/save/pc-money-review/
6:51 pm
November 20, 2018
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It runs along the lines of a prepaid account. You can't deposit or write cheques, you can't use the card at a merchant that doesn't accept Mastercard, and unless the merchant accepts credit as a form of payment then you can't use this card. This is not a Debit Mastercard, but rather a prepaid Mastercard that uses credit as a form of payment.
If you don't require a bank account with cheque processing or cashing purposes and don't need access to the Interac network, then this will work for you.
8:26 pm
April 6, 2013
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If it is structured as a prepaid MasterCard, then PC Financial will receive 1.44% (electronic) or 1.55% (standard) interchange on the spending.
That would be what pays for the PC Optimum points, the account, and the card.
The PC Money Account looks good for those who can't get a credit card and need to use prepaid cards to spend online.
9:22 pm
May 15, 2007
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Here is some previous discussion about the PC Money Account.
3:08 am
October 21, 2013
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Thanks for the info. I had no memory of the previous discussion.
I guess this is directed at trying to create more brand loyalty with PC points. It's not really a bank account as we know bank accounts. I find this very confusing and misleading, to call it a bank account.
9:23 am
October 27, 2013
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In all fairness, I don't see where it says it is a bank account. They only say they have re-imagined the bank account and call it a Money account.
10:00 am
September 11, 2013
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You're right, they say "The PC Money™ Account works like a bank account" thus indicating it's not. They call it "an online self-service money management account".
Probably doesn't matter but they say PC Bank is a CDIC member whereas CDIC site says eligible deposits are in savings and chequing accounts - ?
3:02 pm
April 6, 2013
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CDIC covers "eligible deposits". "Eligible deposits" don't have to be a savings account or a chequing account.
CDIC's FAQ has a General purpose reloadable prepaid cards section that says the balance of some prepaid cards can be an insured deposit:
Are general-purpose reloadable prepaid cards eligible for CDIC deposit protection?
Some, but not all, general-purpose reloadable prepaid cards are eligible for CDIC deposit protection. For example, the funds loaded to a prepaid card must be held at a CDIC member institution, the card must be registered to the cardholder, and the records of the CDIC member must show who they owe the deposit liability to.
Ask your CDIC member institution or card manager for details about whether your particular product is eligible for CDIC coverage, and the nature of the coverage offered.
3:43 pm
September 11, 2013
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Thanks, Norman1. When you go to cdic.ca the home page indicates savings accounts, chequing accounts and term deposits as the only eligible deposits, same when you click on "eligible deposits". Aside from the clarifying FAQ they do have a separate page re 3rd party (fintech) products:
https://www.cdic.ca/your-coverage/financial-products-whats-covered/
4:38 pm
April 6, 2013
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The list of covered products on the Protecting Your Deposits page is not exhaustive.
The full answer is complicated. Section 2 of the CDIC Act Schedule defines what is a "deposit" and consequently what is eligible for coverage.
5:04 pm
October 21, 2013
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AltaRed said
In all fairness, I don't see where it says it is a bank account. They only say they have re-imagined the bank account and call it a Money account.
OK, but they are deliberately using the phrase "bank account" to encourage people to think of it as a bank account, which is equally confusing and misleading. They could have said, "we are making innovations in your PC Optimum account" or similar. By using the phrase "bank account", they are trying to make their "money account' sound normative, which I certainly hope it doesn't become.
5:17 pm
October 21, 2013
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The MoneySense article cited above claims the account has CDIC protection, but that doesn't necessarily make it so. I'd want further clarification.
If you are thinking of signing up for this, you will want to read the Comments at the bottom of the MoneySense article first.
3:54 am
December 25, 2020
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I see this as a way for Loblaws to fund daily operating expences. They know that most people will always have a positive balance in the account, probably re-funding the account when it reaches somewhere around 20% of the maximum they fund to.
I must be missing something. It seems more is gained by using the PC Credit/Optimum card to collect points and redeem them whenever I'm over $10.00.
5:23 am
September 7, 2018
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Loonie said
The MoneySense article cited above claims the account has CDIC protection, but that doesn't necessarily make it so. I'd want further clarification.
Presidents Choice Bank does have CDIC protection.
Stated on the PC Bank site and also listed under CDIC and OSFI.
2:11 pm
October 21, 2013
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canadian.100 said
Presidents Choice Bank does have CDIC protection.
Stated on the PC Bank site and also listed under CDIC and OSFI.
Yes, I know. The question has been whether it applies to this kind of peculiar account. It probably does but not entirely clear.
10:58 pm
April 6, 2013
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Not all instruments and accounts of a CDIC member have CDIC coverage.
CDIC member Peoples Trust Company issues the Titanium+ Prepaid MasterCard that Money Mart offers.
The cardholder agreement points out there is no CDIC coverage of the card's balance:
Information Disclosure Summary
(detailed terms and conditions will follow):Card Issuer: The Titanium+ Prepaid Mastercard Card is issued by Peoples Trust Company pursuant to licence by Mastercard International Incorporated.
…Funds loaded onto the Card are not insured by the Canada Deposit Insurance Corporation (CDIC).
…
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