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Call it whatever you want, it's fairly standard. Credit card companies hold a reserve for travel agencies, airlines, whatever businesses experience a high rat
by supernova87a 6y ago
Call it whatever you want, it's fairly standard. Credit card companies hold a reserve for travel agencies, airlines, whatever businesses experience a high rate of chargebacks or have fundamental risks to their business (like being solvent for more than 1 year). Take comfort in that you're not alone.
- itsoktocry 6y ago>Call it whatever you want, it's fairly standard. I'm seeing this sentiment repeated in this thread. I take no issue with it, but if Stripe moves to "fairly standard" processes, at one point do they become just-another-payment-processor?
- stu2b50 6y agoI mean AFAIK Stripe's selling point is ease of developer use and stuff, not that they have looser risk assessment? It's fundamentally not really something payment processors can solve that if a company goes under with 100k in charge backs due, the payment processor still needs to fork over that 100k of their own money to keep their merchant accounts in good order.
- Silhouette 6y agoI take no issue with it, but if Stripe moves to "fairly standard" processes, at one point do they become just-another-payment-processor? As far as the really big players upstream from them were concerned, I doubt they were ever anything else. They still need a viable business model, and it's not unreasonable to protect themselves against a real risk. The problems here seem to be about how they communicated that and more generally the rather arbitrary and one-sided nature of these reserve arrangements (whether Stripe's or anyone else's) from the merchant's point of view.