Why are multiple credit card companies' HQs in Salt Lake City?

[10068]

My Discover, American Express, and Capital One are all in Salt Lake City.
 
Really low tax brackets or something?

 

[El_Doug]

I'm used to seeing these companies based in South Dakota, but perhaps Utah has recently changed their laws? 
 
Many states have a law that limits the maximum interest rate that can be charged on a loan, but South Dakota has no such law - so the APR charged on late credit card payments can be as high as they want (until Federal laws kick in). 
 
Not sure if this applies to Salt Lake City, or if it is some other reason

 

[billybob_jcv]

Where are you getting your address info?  Capital One is HQ'd in McLean, VA:
http://en.wikipedia.org/wiki/Capital_One
 
American Express HQ is in New York:
http://en.wikipedia.org/wiki/American_Express
 
Discover is in Illinois:
http://en.wikipedia.org/wiki/Discover_Financial
 
Now, if you mean where the processing is done, that's different, where you send your payment might be somewhere else and where you call for customer support might be another location!

 

[obobskivich]

SLC hosts a lot of corporate support/processing centers because the taxes and cost of living in Utah are very low relative to the amenities available in the city. It's also become popular because of the availability of a relatively educated labor force, popularized by one of the airlines (I forget which one) that shifted their entire call center operations there (from India) because they figured out that Utahn housewives do a better job at speaking English and relating to Americans than Indians with a ton of vocal coaching (AND their initial investment is a lot lower than in India because they don't have to provide any infrastructure (since SLC is so tied into the national telecom and Interstate system (did you know that SLC sees something like 85% of all bulk transit in the US at some point?)). This isn't meant to be racist; I honestly don't care where the call center is placed, I'm just reporting what I've been told and read.

The universities also attract a lot of skilled labor and companies flock to that, but since the recession (and last I heard) this is shifting and I'm pretty sure a few of those thinktank type companies have folded up either entirely or at least in the SLC (like EA) because of dwindling profits. This is historic and goes back to DARPANET and Ivan Sutherland and his posse (there isn't a better word, but basically if you look up the history of the University you'll see most of the big names in computing that weren't at MIT or in Europe) at the University of Utah; it was one of the first places to be connected, and is still one of the cheaper places in the US to get bulk bandwidth.

It's not out in the middle of nowhere which makes it appealing too (it's relatively close, especially by courier, to Denver, Los Angeles, and San Francisco); and a lot of people don't mind living there so it makes employees happy.

Sources:
I've known some call-center consultants and operators, and I've lived there.

 

[billybob_jcv]

Utah is one of the places we are looking at for outsourcing our small data center.  As you said, lots of available bandwidth, a lack of natural disasters (not known for their earthquakes, hurricanes or tornadoes) and relatively inexpensive power and labor.  Oracle built a $400M data center in Utah to use for their cloud-based apps (Oracle On Demand & CRM On Demand).

 

[obobskivich]

Utah is one of the places we are looking at for outsourcing our small data center.  As you said, lots of available bandwidth, a lack of natural disasters (not known for their earthquakes, hurricanes or tornadoes) and relatively inexpensive power and labor.  Oracle built a $400M data center in Utah to use for their cloud-based apps (Oracle On Demand & CRM On Demand).

The ironic thing about the natural disasters point - SLC itself (the fault sits around 1300E, University Ave) is supposed to be the site of one those "mega quakes" at some point in the future (if the geologists at BYU and Utah are to be believed). The really scary part (this is why I don't like working with tectonic geologists, because they tell you scary crap like this) is that one of the best trauma hospitals in a multi-state area (the University hospital) will be separated from the city (assuming it survives) by that fault after the quake...and they have ONE helicopter. And it's kind of small. This earthquake is why the new Willard Marriott library is built like Fort Knox as well. There's also supposedly retrofitting operations for the landmark buildings (those buildings that are older than the state they're in).

But yeah, they don't get tornadoes, floods, hurricanes, or even very bad wildfires for that matter. And it's not like they have crime either.

Really I'm sort of questioning why I moved again...

 

[billybob_jcv]

I live in SoCal - where there are more earthquake faults than freeways.  Just about anywhere else is a reduction in risk!

 

[PurpleAngel]

Quote:

Where are you getting your address info?  Capital One is HQ'd in McLean, VA:
http://en.wikipedia.org/wiki/Capital_One
 
American Express HQ is in New York:
http://en.wikipedia.org/wiki/American_Express
 
Discover is in Illinois:
http://en.wikipedia.org/wiki/Discover_Financial
 
Now, if you mean where the processing is done, that's different, where you send your payment might be somewhere else and where you call for customer support might be another location!

Could be the business is officially registered in Utah.
but has mailing and business offices in other states.

 

[10068]

Thanks everyone for the info    The More You Know!  And hey, I assumed it was about money so I had the right idea. Yay me!
 
 
Quote:

Where are you getting your address info?  Capital One is HQ'd in McLean, VA:
http://en.wikipedia.org/wiki/Capital_One
 
American Express HQ is in New York:
http://en.wikipedia.org/wiki/American_Express
 
Discover is in Illinois:
http://en.wikipedia.org/wiki/Discover_Financial
 
Now, if you mean where the processing is done, that's different, where you send your payment might be somewhere else and where you call for customer support might be another location!

 
Oops. Well, I wrote HQ because almost everything I've ever mailed to those three has had to go to SLC, and almost everything they mail me has come from SLC. For example when I got new copies of all my cards recently, they all came from SLC. When I am declined for something and it has to be sent via USPS (never understood that one) it comes from SLC. When I have to mail them documents for updating stuff, it goes to SLC.
 
 
 
Quote:

 And it's not like they have crime either.

 
Are you sure? I've heard some nasty stories about missionaries beating people with the Book of Mormon and forcing them to eat these
 
Ahhhhh just kidding.

 

[billybob_jcv]

Ahh - OK, I supect having the processing there probably has more to do with cheap labor, an educated & generally honest workforce and plentiful power & bandwidth - they also could be outsourcing the work and the employees actually opening/stuffing your envelopes may not even work directly for the finance companies.
 
On a different tangent, wasn't the largest rebate processor based in Minnesota?  It seemed like every $5 & $10 check I ever received came from "Young America, MN!"

 

[obobskivich]

Yeah it's somewhere in MN; been there too. I swear I'm not in advertising...