3 ms·

It's a shame there is no regulation protecting small business from these practices. It shouldn't be legal for a big corporation to shut down someone's business

• the88doctor 3y ago
  Sadly, not only is it legal, but it is incentivized. Financial service providers have enormous civil and criminal liability by tech company standards, and some regulations require them to use "risk-based" approaches to decline service to clients. The legal consequences of shutting out innocent small businesses are essentially nothing compared to the consequences of allowing a single criminal or terrorist to use their service.
• AnthonyMouse 3y ago
  The regulations in practice do the opposite. Customers can easily issue charge backs, which puts the cost of fraud on the payment processor, which makes them too aggressive with the big red button. It costs them less to vaporize a small business than for their fraud prevention system to have a false negative. The right way to fix this is for something like Zelle to get a standardized payment request API. Then the merchant submits a payment request using the customer's email address (the only information the merchant needs from them, so no data breaches), and payments go through irreversibly if they haven't been contested in 30 days, or immediately if the customer affirmatively legitimates the payment on their bank's website/app because the merchant needs to be paid before delivering goods or services. (And payment requests from merchants the customer has never used before get denied after 30 days if not affirmatively legitimated.) That also removes the credit card fees because it's really a bank transfer. But where is it?