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> They either send money they have (in which case all is well), or promise to send money they don't have (which is the recipient's problem). No, they have the
by scrollaway 3y ago
> They either send money they have (in which case all is well), or promise to send money they don't have (which is the recipient's problem).
No, they have the money. But the money is ultimately that of the Venmo user. If that money gets removed from the account by some other means (eg some form of clawback, dispute, whatever) then they're out that user's money, and they're on the hook: So Venmo pays for the user.
Every dollar is somebody else's dollar.
- lxgr 3y ago> But the money is ultimately that of the Venmo user. Sure, but that's completely independent of the finality, settlement timing, payment rails etc. of the payout side. So if you're talking about the funding side, ACH is indeed very risky, since it's ACH direct debit. But great-GP was talking about Venmo payouts. There, Venmo is an ACH credit sender, which is risk-free.