3 ms·
Could be wrong, but I think it's less puritanical, and more that transactions with these types of vendors are overwhelmingly fraudulent and charged-back. It's a
by bpicolo 5y ago
Could be wrong, but I think it's less puritanical, and more that transactions with these types of vendors are overwhelmingly fraudulent and charged-back. It's a big liability for the processors.
- eh9 5y agoThis is a common reason that’s given, but I haven’t seen any proof. I wouldn’t be surprised if this is surprisingly overblown and the industry doesn’t actually have that bad a problem with charge backs
- bpicolo 5y agoChargebacks and fraud are a massive issue for every ecommerce business
- 0xy 5y agoI wouldn't call it a "massive issue". If you have a reputable ecom business your rates of chargeback and fraud should be quite a bit under 1%. Adult businesses however can have triple or even greater than that. If you can't absorb 0.5% in loss, then you shouldn't be in ecommerce. Same thing as being in bricks and mortar, if you can't absorb shoplifting you shouldn't be in business.
- bpicolo 5y agoNot relevant in this case, but for low margin physical goods the math can be much worse. You're out the cost of the good, the taxes and fees associated, the margin, and the chargeback fee. For food delivery middlemen, for example, it's a really rough game
- fouric 5y agoIt could also be because, as suggested in another comment[1], banks are getting regulated in a way that the payment processors simply don't want to deal with. [1] https://news.ycombinator.com/item?id=28238003 https://news.ycombinator.com/item?id=28238003
- deleted 5y ago[deleted]