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Another problem with Paypal.com and 2Checkout.com is the amount of data they require to charge my card. There's no way they need to know my home address, phone

• dangrossman 15y ago
  It's not about laziness, it's about fraud. The less you know about your customer the more likely the person on the other end is not who they claim to be, and doesn't have permission to use the credit card they're using. For some sites that's fine, for others taking only a CC#, CVV2 code and zip code (the minimum necessary info to pay a decent transaction rate ) and you'll be out of business in a few months from the chargeback rate. Once you lose a merchant account for CB rate (consistently above 1%), you'll never get another again, since all banks/MSPs check the TMF and MATCH file and will see you've been terminated in the past. Both your business information and the social security numbers of all principals of the business will be blacklisted for life. You might be interested in the book "Founders at Work: Stories of Startups Early Days". PayPal is one of the founding stories covered. The only reason PayPal is here, where so many other payment services came and went during the dot-com boom, is that they tackled the fraud problem. There were times when PayPal was bleeding over $10 million a month to fraudulent activity. They are, in effect, the largest payment fraud management company in the world.