3 ms·
They can make stuff up, right? They are allowed to say "we are keeping your money for 120 days because of some security ...". Who is ever going to know this is
by jjallen 4y ago
They can make stuff up, right? They are allowed to say "we are keeping your money for 120 days because of some security ...". Who is ever going to know this is valid/true or not, unless it goes to trial somehow and there is a lot of discovery done.
They are literally funding themselves out of deposits, in a small way if they keep any persons money for any period of time. If they start doing it to lots of people for months at a time then they are at least partially funding themselves from their customers.
Lots of businesses do this incidentally. A good one is businesses selling gift cards. It's not the same; but this set of conditions is not super uncommon.
- JumpCrisscross 4y ago> are literally funding themselves out of deposits No, they probably are not. It’s illegal and money transmitters are regulated. What they are doing is collecting interest. One tends to see less scrupulous transmitters hold funds longer when rates rise. I didn’t think Stripe fell in this category, but it’s becoming difficult to say. > good one is business selling gift cards You’re right. (Also customer deposits.) This doesn’t apply to money transmitters, however.
- inetknght 4y ago> It’s illegal and money transmitters are regulated. It's only illegal if the regulator enforces action. Good luck getting regulators to enforce action on something like this.
- deleted 4y ago[deleted]