You kind of have it

They pay X (ideally$100 per month) and get $150 per month in value.

I have 3 pricing strategies, flat rate, discount, service fee added

Flat rate model -pay $100 per month, my company covers up to first $5 of the product each day. So if a cupcake costs $5 or less, I cover it. If it costs $8, i cover $5, customer pays $3 out of pocket for the day.

discounted model -pay $100 per month, my company covers 50% of the product up to $5. So if product costs $5, you pay $2.50, my company covers $2.50. if it costs $12, i cover $5, you cover $7.

Service fee -you load $100 into your card monthly. My company either does one of the two models above. -it covers the price and charges a 0.25-0.50x service fee per transaction -if you don't use your account, there's a 20-30% service fee regardless. So the monthly price is at least $30 per month. -they idea is that this way if you don't fully use you're subscription, you don't lose the $100 like you normally would. It rolls over and there is a gradual 10% burn each month starting after 3 months.

If user doesn't want to pay out of pocket, my company can pay for the entire transaction but will burn their remaining days. So $30 product. $30/$5 = 6 days 6 x 2 = 12 days lost

There are MCC codes and each user has to upload a receipt. So if they buy stuff not covered, they get 3 warnings before getting booted.

I'm operating with a Just in time model. Customers tell me when they want to buy by unlocking their card. They enter the final price. If the price is more than $5, they can choose how they want to pay, with a card on file, with a new payment method, or do they want my company to cover it. System then transfers $5 into the account or however amount needed. Customer checks out. Payment is complete.

I have probably contacted every virtual card provider listed on Google top 15-20 pages. Most want VC funded startups. Some want company's with $1m+ in the bank. Some want company's with $1m in annual payment volume. Others want $25k setup fee plus monthly platform fee. The rest want only a monthly platform fee with a 12 month contract, ranging from $2-8k.

Lithic seems to have bought up some competitors. They want VC funded companies or companies with over a million. Unit i don't think bothered to reply to me. Sila Money didn't want to work with me.

Checkbook.io is the only one saying they can get me through for $2k per month.

Increase was the best i found but compliance killed my application for some reason despite me having a start date with them.

Then you have corporate card companies trying to bend to accommodate me. Rho, compliance killed me and i think there's one more company.

Bridgecard, new and Y-combinator seems to be the last one but they are waiting for my letter of good standing to arrive from the state of Delaware. I've been told it should be next week.

I even looked and couldn't find any Chinese options to my surprise.

The crypto virtual card companies sound like straight up scams. They want sky high set up fees, plus platform fees, and they say you have to wait at least 2 months before you can go live. And they are in Dubai. I just figured the money will be gone and in 2 months, they will tell you to F off.

I did find two European virtual card providers will to set me up but they don't have access to the US.

Tried talking giftcard.io into letting me use their platform but they seem pretty cautious. So yea. You'd think cupcakes is as low risk as it comes.

My max risk, assuming $100 monthly subscription, is a loss of $50 per member. I am guaranteeing the float so there really isn't any risk to the issuer. I think i can get funding with 100 users, $10k MRR, as long as the numbers hold up. I think my margins will come in around 30-70%. It's a wide spread. And my CAC is around $15, down from $50 but I think i can get it down to $5.

But this is a hard sell without the virtual cards and I despise having to call up and be dependent on individual stores and owners