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The risk to PayPal is that Visa/MC no longer allow PayPal to transact on their network if aggregate chargebacks exceed some percentage. I don’t know how the ex
by liuhenry 6y ago
The risk to PayPal is that Visa/MC no longer allow PayPal to transact on their network if aggregate chargebacks exceed some percentage.
I don’t know how the exact details iron out but this was a concern when I worked on a payments platform. PayPal enables transactions for merchants who don’t have a relationship directly with Visa/MC and thus are themselves responsible at some level.
- nkohari 6y ago> The risk to PayPal is that Visa/MC no longer allow PayPal to transact on their network if aggregate chargebacks exceed some percentage. PayPal processed 711.92B USD of transactions during 2019. [1] It's feasible that they'll hit a trillion dollars in PV this year. While it's true that Visa/MC could lock them out if they so chose, it's incredibly unlikely. [1] https://www.statista.com/statistics/277841/paypals-total-payment-volume/ https://www.statista.com/statistics/277841/paypals-total-pay...
- tzs 6y agoHow many of those transactions were with buyers who if PayPal were not available would have used their credit card directly instead?