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It's still a risky business model, since in certain fraud cases it will be left holding the bag for chargebacks if it has released the money to a fraudster but
by PeterisP 6y ago
It's still a risky business model, since in certain fraud cases it will be left holding the bag for chargebacks if it has released the money to a fraudster but they don't have a revenue stream proportional to the payment amount to cover whatever percentage of the transactions are fraudulent.
- kyrra 6y agoNot sure why you're down voted. People that steal credit cards find ways to fund money from those cards to themselves. Fake apps are one way this can happen. When a company sets up a model where anyone could easily become a receiver of money and anyone could easily pay, they get into the AML world.
- vishnugupta 6y ago> When a company sets up a model where anyone could easily become a receiver of money and anyone could easily pay, they get into the AML world. Yeah, it’s interesting how very few people know about the ways payment frauds take place. An analogy I can think of is highways. A non trivial number of vehicles plying them are carrying illegal goods. Payments is similar, when you set up a path for money to flow between A and B the very first users to adopt that path are money launderers.
- dangero 6y agohttps://stripe.com/radar/chargeback-protection https://stripe.com/radar/chargeback-protection
- dmak 6y agoStripe Connect.