4 ms·

> chargeback free donations Are chargebacks on donations are major issue for any legitimate non-profit organization?

hunterb123 5y ago
Virtual game currencies, controversial politics, porn, gambling etc. Basically anything Stripe / PayPal locks your account for and considers you high risk or CC companies block.
- erik_seaberg 5y ago
  They are targets for testing stolen numbers: https://blog.sift.com/2016/card-testing-chargebacks-and-nonprofit-donation-sites/ https://blog.sift.com/2016/card-testing-chargebacks-and-nonp... I can also imagine political orgs having foes.
  - hunterb123 5y ago
    Yup, and crypto nips that in the bud. If you get a confirmed transaction, it's not going to be reversed by some unfair arbitration, you can trust it. It sucks trying to run a game losing $20+ per chargeback and risking getting funds frozen entirely. It sucks to be delisted by PayPal over political bullshit. It sucks Mastercard and other CC companies can decide porn is essentially illegal. - edit @ notahacker - The point is you're at the whim of PayPal, Stripe, and credit card company policies for traditional fiat currency. Have fun trying to sell guns (FFL be damned), porn subs (legal like you mentioned), virtual currency (legal ofc), or anything like that with traditional processors. Crypto is the only option for those industries and a few others if you want to accept payment online. Doesn't matter how many billions the industry is worth if you can't accept a credit card on your site for the service. If all majors processors ban it, it's essentially blocked.
    - notahacker 5y ago
      Porn isn't "essentially illegal", it's an industry worth billions of dollars, virtually none of which involves blockchains.
  - throwawaygh 5y ago
    That's interesting, but I don't see how it's related to OP's point. (Which was ostensibly about legitimate donations to legitimate non-profits, but was apparently actually about gambling, porn, and politics...) Using fraud detection technology and/or swallowing the chargeback fees would probably be cheaper than the overhead of using a crpytocurrency+exchange. Setting a minimum donation so that you're not a good target for card testing probably has a lower barrier to entry than requiring use of a crpytocurrency.
- throwawaygh 5y ago
  >>> ...chargeback free donations... >> Are chargebacks on donations are major issue for any legitimate non-profit organization? > Virtual game currencies, controversial politics, porn, gambling etc. Paying for porn is not a donation. Paying for in-game currency is not a donation. Gambling is not a donation. Giving money to someone for "controversial politics" is almost never an issue, especially if you're actually donating (which is only possible if you are, e.g., giving money to a registered candidate, a PAC, or an org that files a Form 8872). I make a lot of political donations and have never had an issue. If you're: 1. giving money to someone for political reasons, who 2. explicitly opts out of tax-advantaged status so that they don't have to use that money in a way that's congruent with donor's intent, and 3. has a huge issue with charge-backs on unrestricted non-tax-advantaged gifts... IDK. I'd tend to consider that a massive red flag. But I guess funding scam artists who get tons of money from identity thieves and prey on controversial politics is indeed a use-case for crypto.

Virtual game currencies, controversial politics, porn, gambling etc. Basically anything Stripe / PayPal locks your account for and considers you high risk or CC companies block.

erik_seaberg 5y ago
They are targets for testing stolen numbers: https://blog.sift.com/2016/card-testing-chargebacks-and-nonprofit-donation-sites/ https://blog.sift.com/2016/card-testing-chargebacks-and-nonp... I can also imagine political orgs having foes.
- hunterb123 5y ago
  Yup, and crypto nips that in the bud. If you get a confirmed transaction, it's not going to be reversed by some unfair arbitration, you can trust it. It sucks trying to run a game losing $20+ per chargeback and risking getting funds frozen entirely. It sucks to be delisted by PayPal over political bullshit. It sucks Mastercard and other CC companies can decide porn is essentially illegal. - edit @ notahacker - The point is you're at the whim of PayPal, Stripe, and credit card company policies for traditional fiat currency. Have fun trying to sell guns (FFL be damned), porn subs (legal like you mentioned), virtual currency (legal ofc), or anything like that with traditional processors. Crypto is the only option for those industries and a few others if you want to accept payment online. Doesn't matter how many billions the industry is worth if you can't accept a credit card on your site for the service. If all majors processors ban it, it's essentially blocked.
  - notahacker 5y ago
    Porn isn't "essentially illegal", it's an industry worth billions of dollars, virtually none of which involves blockchains.
- throwawaygh 5y ago
  That's interesting, but I don't see how it's related to OP's point. (Which was ostensibly about legitimate donations to legitimate non-profits, but was apparently actually about gambling, porn, and politics...) Using fraud detection technology and/or swallowing the chargeback fees would probably be cheaper than the overhead of using a crpytocurrency+exchange. Setting a minimum donation so that you're not a good target for card testing probably has a lower barrier to entry than requiring use of a crpytocurrency.
throwawaygh 5y ago
>>> ...chargeback free donations... >> Are chargebacks on donations are major issue for any legitimate non-profit organization? > Virtual game currencies, controversial politics, porn, gambling etc. Paying for porn is not a donation. Paying for in-game currency is not a donation. Gambling is not a donation. Giving money to someone for "controversial politics" is almost never an issue, especially if you're actually donating (which is only possible if you are, e.g., giving money to a registered candidate, a PAC, or an org that files a Form 8872). I make a lot of political donations and have never had an issue. If you're: 1. giving money to someone for political reasons, who 2. explicitly opts out of tax-advantaged status so that they don't have to use that money in a way that's congruent with donor's intent, and 3. has a huge issue with charge-backs on unrestricted non-tax-advantaged gifts... IDK. I'd tend to consider that a massive red flag. But I guess funding scam artists who get tons of money from identity thieves and prey on controversial politics is indeed a use-case for crypto.