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In many cases, I suspect providers would love if this was illegal, as they likely dislike being forced by the public to become arbiters of decency (thinking esp
by jamestimmins 4y ago
In many cases, I suspect providers would love if this was illegal, as they likely dislike being forced by the public to become arbiters of decency (thinking especially of Cloudflare banning trolls).
The balance, according to my limited understanding, is that certain types of activity including porn-adjacent sites have much higher card failure rates, so banning some activity is a way to reduce chargeback costs falling on Stripe's shoulders.
- Wowfunhappy 4y ago> The balance, according to my limited understanding, is that certain types of activity including porn-adjacent sites have much higher card failure rates, so banning some activity is a way to reduce chargeback costs falling on Stripe's shoulders. In that case, wouldn't the solution be to charge higher processing fees (possibly much higher) for websites in that category? Why ban them entirely?
- dragonwriter 4y ago> In that case, wouldn't the solution be to charge higher processing fees (possibly much higher) for websites in that category? Which will the lead to deliberate miscategorization, and more costs to verify claimed categorization, and...
- Wowfunhappy 4y agoDoesn't banning the category create an even stronger incentive for deliberate miscategorization?
- hattmall 4y agoNo, because the logical penalty for miscategorization is adjustment to the correct fees. The penalty for getting around a banned category is that they steal your money. In many cases it is very large amounts.
- Wowfunhappy 4y agoHuh. Well, I'm not sure of the legal details, but that seems like a system that ought to be changed, since the incentives are clearly misaligned.