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I was thinking more in an upfront payment model, where the customer pre-funds their account with the merchant. If you immediately sent those funds to the mercha
by strbean 1y ago
I was thinking more in an upfront payment model, where the customer pre-funds their account with the merchant. If you immediately sent those funds to the merchant, then would you avoid functioning as an e-money institution?
Of course, this would then mean that the customer is trusting merchant not to run off with their money.
- strnisa 1y agoThat's an interesting idea. This may avoid the e-money issues, but: - The customer has to pay upfront, which lowers conversion rates. - No shared balance across multiple merchants, resulting in higher total payment processing fees. - As you already noted, trust shifts to each merchant to honor unused balances.