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The worst thing about chargebacks and fraud in general is that there's no incentive for payment processors / card issuers to fix the issue as they are benefitin

by Eikon 6y ago

The worst thing about chargebacks and fraud in general is that there's no incentive for payment processors / card issuers to fix the issue as they are benefiting from it by charging the merchant a fee when a chargeback is filled. There's also a whole business made on the basis of providing anti-fraud services. By now, credit card security should absolutely be a solved problem and it's crazy that we still in 2020, have to input numbers printed on the card to pay online.

Silhouette 6y ago
Card security is broken by design. It can't be fixed without turning it into a fundamentally different payment mechanic. What should be happening is that governments should be clamping down on the abusive practices of the financial services giants such that they can't push responsibility for anything that goes wrong onto merchants and/or their customers, thus making huge profits but sharing none of the risk created by the flawed system they control. It messes with my mind that in 2020, one of the biggest practical problems we have with running an online business is the simple act of getting money reliably and permanently transferred from a legitimate customer to us.
- shadowprofile77 6y ago
  Not to take responsibility away from these financial services companies in how they screw their customers but it's worth mentioning that governments themselves are enormously responsible for causing many payment gateway problems: Extremely paranoid and grossly onerous regulatory compliance requirements make innovation in this space difficult at best KYC and AML rules that are both obscure, highly byzantine and don't even allow banks to clearly communicate basics to their clients mean being arbitrarily screwed for really stupid reasons and having little recourse, with financial services companies further getting an excuse to continue abusing by passing some of the blame onto government rules. Oh and as another comment right near here mentions, payment processors simply cancelling or denying service (sometimes even freezing funds on their own account) for businesses, organizations and individuals who participate in activities that a government (especially the U.S government) doesn't like for arbitrary bullshit "moral" or political reasons. This too is despicable because it often involves economic punishment for people who are doing nothing even remotely illegal.

by Eikon 6y ago

Silhouette 6y ago

Card security is broken by design. It can't be fixed without turning it into a fundamentally different payment mechanic. What should be happening is that governments should be clamping down on the abusive practices of the financial services giants such that they can't push responsibility for anything that goes wrong onto merchants and/or their customers, thus making huge profits but sharing none of the risk created by the flawed system they control. It messes with my mind that in 2020, one of the biggest practical problems we have with running an online business is the simple act of getting money reliably and permanently transferred from a legitimate customer to us.

shadowprofile77 6y ago
Not to take responsibility away from these financial services companies in how they screw their customers but it's worth mentioning that governments themselves are enormously responsible for causing many payment gateway problems: Extremely paranoid and grossly onerous regulatory compliance requirements make innovation in this space difficult at best KYC and AML rules that are both obscure, highly byzantine and don't even allow banks to clearly communicate basics to their clients mean being arbitrarily screwed for really stupid reasons and having little recourse, with financial services companies further getting an excuse to continue abusing by passing some of the blame onto government rules. Oh and as another comment right near here mentions, payment processors simply cancelling or denying service (sometimes even freezing funds on their own account) for businesses, organizations and individuals who participate in activities that a government (especially the U.S government) doesn't like for arbitrary bullshit "moral" or political reasons. This too is despicable because it often involves economic punishment for people who are doing nothing even remotely illegal.