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I'm thinking through a potential pessimistic scenario here so take this with a grain of salt. let's say a verboten but legal business embeds this widget on the

I'm thinking through a potential pessimistic scenario here so take this with a grain of salt. let's say a verboten but legal business embeds this widget on their website. a user then uses their visa credit card to exchange for cryptocurrency and make a purchase. I believe Visa would argue that stripe is laundering money through cryptocurrencies to get around high risk payment processing. Visa could demand all cryptocurrency addresses associated with stripes embedded widget and compare that against known blacklisted destination addresses. It would do so under the guise of preventing terrorism, child exploitation, and money laundering. stripe is huge so rather than immediately cutting them off as is what happened to new project 2, I believe they would give stripe an ultimatum of sorts to remove the functionality, or demand stripe prevent transactions to any of the vague/subjective categories of businesses deemed high risk. The latter would likely be impossible because a high risk business could generate a new address easily which would only later be blacklisted and associated with the business landing stripe in breach of the agreement.

seydor 4y ago
at best, visa requires people who participate to upload their government ID for such stuff. Stripe is not that big for them to care
vineyardmike 4y ago
> believe Visa would argue that stripe is laundering money through cryptocurrencies to get around high risk payment processing > It would do so under the guise of preventing terrorism, child exploitation, and money laundering. It doesn't really care about these things all that much. I don't think this would realistically happen. But I doubt visa would be pleased about being a crypto on ramp. Most "high risk" credit card businesses (read: porn) are high risk due to charge-backs. Something Something about telling your wife you didn't actually pay for that... If you use crypto to buy porn... no chargebacks to the business, so the business isn't risky. The big risk becomes stolen credit cards, where StolenCC->Crypto becomes a perfect avenue to steal from Stripe/CC Company. You move the crypto, then let the CC owner charge-back stripe or the CC company for the funds. The thief gets to keep the crypto, the victim gets their money back, but the big corps have to eat the cost. That last bit (who loses) is why this project might die. Visa isn't really focusing on catching terrorism or whatever, they're trying to avoid chargebacks due to fraudulent behavior.

seydor 4y ago

at best, visa requires people who participate to upload their government ID for such stuff. Stripe is not that big for them to care

vineyardmike 4y ago

> believe Visa would argue that stripe is laundering money through cryptocurrencies to get around high risk payment processing > It would do so under the guise of preventing terrorism, child exploitation, and money laundering. It doesn't really care about these things all that much. I don't think this would realistically happen. But I doubt visa would be pleased about being a crypto on ramp. Most "high risk" credit card businesses (read: porn) are high risk due to charge-backs. Something Something about telling your wife you didn't actually pay for that... If you use crypto to buy porn... no chargebacks to the business, so the business isn't risky. The big risk becomes stolen credit cards, where StolenCC->Crypto becomes a perfect avenue to steal from Stripe/CC Company. You move the crypto, then let the CC owner charge-back stripe or the CC company for the funds. The thief gets to keep the crypto, the victim gets their money back, but the big corps have to eat the cost. That last bit (who loses) is why this project might die. Visa isn't really focusing on catching terrorism or whatever, they're trying to avoid chargebacks due to fraudulent behavior.