"It is not appropriate for those companies to be mitigating that risk using the credit from their merchant account." If I'm not mistaken, if this were an actua

"It is not appropriate for those companies to be mitigating that risk using the credit from their merchant account." If I'm not mistaken, if this were an actual, say, visa merchant account, all parties would have much clearer rules laid out. The customer would be protected "they didn't deliver, I'm not paying". The merchant doesn't get "credit" per-se..... they have to deliver goods or the charge-backs start, at which point they are up shit creek, along with possibly their substantial deposit with their merchant provider. Paypal does not work like a normal merchant account for credit cards - people need to remember that - that's why we have these horror stories. If a credit card processor tried to pull this stuff they'd have their visa contract yanked in a heartbeat and thir merchant banks would drop them like a hot potato.