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Great write up with drawing comparisons between the two. I've looked into Braintree as I have some colleagues that work there (Easy tech support channel) and th

Great write up with drawing comparisons between the two. I've looked into Braintree as I have some colleagues that work there (Easy tech support channel) and the Ignition program (first $50k transaction fees waived) seemed like a no brainer for lean startup implementation. Had no issues with the node API and the documentation was very helpful. That being said, I've seen nothing but praise for Stripe payments. The dev and design team are very solid and supposedly have great documentation as well. I wonder, since Braintree is owned by PayPal, if companies have experienced the same pain points with getting locked out of funds for arbitrary reasons on that platform, or if Braintree is completely agnostic to PayPals TOS.

droopyEyelids 9y ago
Braintree stripe and PayPal all have similar reserve policies. You don't hear about people getting upset with Braintree (or Stripe) because when someone integrates with Braintree they're aware they're making a business decision and they read the contract, and have probably looked into getting their own merchant account and have an idea of the lay of the land. You do hear about people getting upset with PayPal because it's "laymen" who click through everything without reading, and they don't often understand the concept of a reserve at all, let alone the idea that a product delivered in the future increases the risk to the payment processor. Or the myriad other product/circumstance combinations that increase processor risk
- iamcreasy 9y ago
  > concept of a reserve Can you please explain what it is?
  - danielvf 9y ago
    From the stripe TOS: > All funds resulting from Charges are held in pooled clearing accounts (the “Clearing Accounts”) with our Financial Services Partners. We will make Transfers to and from the Clearing Accounts in the manner described in this Agreement; however, you have no rights to the Clearing Accounts or to any funds held in the Clearing Accounts, you are not entitled to draw funds from the Clearing Accounts, and you will not receive interest from funds maintained in the Clearing Accounts. > In certain circumstances, we may require you to place funds in reserve or to impose conditions on the release of funds (each a “Reserve”). We may impose a Reserve on you for any reason if we determine that the risk of loss to Stripe, Customers, or others associated with your Stripe Account is higher than normal. For example, we may hold a Reserve if: (i) your or your Customers’ activities increase the risk of loss to us or to your Customers, (ii) you have violated or are likely to violate this Agreement, and (iii) your Stripe Account has an elevated or abnormally high number of Disputes. If we impose a Reserve, we will establish the terms of the Reserve and provide you Notice of the amount, timing, and conditions upon which the funds in the Reserve will be released to you. In many cases, the Reserve amount will be the entire amount of Charges processed using the Payment Services. We may change or condition the terms of the Reserve based on our continuous assessment and understanding of the risks associated with your Stripe Account, if required to do so by Financial Services Providers, or for any other reason. We may fund the Reserve with funds processed through your use of Payment Services, by debiting the Payout Account or another bank account associated with your Stripe Account, or by requesting funds directly from you. > To the extent possible, we prefer to identify the necessity for a Reserve in advance of establishing one. If you are concerned that we will impose a Reserve on you due to the nature of your business activities, please contact us before using the Services.

droopyEyelids 9y ago

Braintree stripe and PayPal all have similar reserve policies. You don't hear about people getting upset with Braintree (or Stripe) because when someone integrates with Braintree they're aware they're making a business decision and they read the contract, and have probably looked into getting their own merchant account and have an idea of the lay of the land. You do hear about people getting upset with PayPal because it's "laymen" who click through everything without reading, and they don't often understand the concept of a reserve at all, let alone the idea that a product delivered in the future increases the risk to the payment processor. Or the myriad other product/circumstance combinations that increase processor risk

iamcreasy 9y ago
> concept of a reserve Can you please explain what it is?
- danielvf 9y ago
  From the stripe TOS: > All funds resulting from Charges are held in pooled clearing accounts (the “Clearing Accounts”) with our Financial Services Partners. We will make Transfers to and from the Clearing Accounts in the manner described in this Agreement; however, you have no rights to the Clearing Accounts or to any funds held in the Clearing Accounts, you are not entitled to draw funds from the Clearing Accounts, and you will not receive interest from funds maintained in the Clearing Accounts. > In certain circumstances, we may require you to place funds in reserve or to impose conditions on the release of funds (each a “Reserve”). We may impose a Reserve on you for any reason if we determine that the risk of loss to Stripe, Customers, or others associated with your Stripe Account is higher than normal. For example, we may hold a Reserve if: (i) your or your Customers’ activities increase the risk of loss to us or to your Customers, (ii) you have violated or are likely to violate this Agreement, and (iii) your Stripe Account has an elevated or abnormally high number of Disputes. If we impose a Reserve, we will establish the terms of the Reserve and provide you Notice of the amount, timing, and conditions upon which the funds in the Reserve will be released to you. In many cases, the Reserve amount will be the entire amount of Charges processed using the Payment Services. We may change or condition the terms of the Reserve based on our continuous assessment and understanding of the risks associated with your Stripe Account, if required to do so by Financial Services Providers, or for any other reason. We may fund the Reserve with funds processed through your use of Payment Services, by debiting the Payout Account or another bank account associated with your Stripe Account, or by requesting funds directly from you. > To the extent possible, we prefer to identify the necessity for a Reserve in advance of establishing one. If you are concerned that we will impose a Reserve on you due to the nature of your business activities, please contact us before using the Services.