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Chargeback rate is low, but: 1) NZ company operating out of Australia- complicated international ownership structure. 2) Industry is software. Software is a h
by droopyEyelids 9y ago
Chargeback rate is low, but:
1) NZ company operating out of Australia- complicated international ownership structure.
2) Industry is software. Software is a high risk product category.
3) Very quick unexpected growth in transaction volume. Another big fraud red flag.
This isn't an aggressive reserve, it's a defensive one.
- pentae 9y agoIndustry standard holdback rate is 10% for six months. I've been in the payments industry 15+ years and never heard of anyone holding more than 10% except for PayPal. Not giving a timeline on when the holdback is returned is also unique to PayPal. There's no defense here. What they are doing should be against the law.