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The problem is that you haven't identified PayPal's concern. It's not sussing out whether a conference is real or fake. All of the money is at risk even in a re
by dangrossman 14y ago
The problem is that you haven't identified PayPal's concern. It's not sussing out whether a conference is real or fake. All of the money is at risk even in a real conference, run by a trustworthy person. You want their evangelists to reach out to conference organizers. If they were intimately involved in every single developer conference worldwide, it still would not eliminate PayPal's risk. It wouldn't solve the problem.
The risk is that one single person holds a huge pile of funds for services that are supposed to be rendered in the future. That single person can skip out of town at any time. They could get hit by a bus. Their venue could burn down in a fire. Whatever the cause, there is a non-zero risk that the funds aren't used as intended or the event doesn't happen, and PayPal will be on the hook for hundreds or thousands of disputes and chargebacks from the purchasers.
This is why payment services for events like EventBrite don't work like PayPal. EB gets paid the money, and the event organizer has no access to it until after the event, when there's no chance of EB being on the hook for disputes for an event that didn't happen.
PayPal isn't in the insurance business. When it does allow a pre-sale, per the terms already linked in this discussion, they typically require a reserve. That means money can come into your account but you can't withdraw it. That's not malicious, that's the same thing EventBrite does. You only get the money after you've rendered the service it was paid for; it's protection for the attendees and PayPal. To expect anything different is to expect PayPal to act as a free insurer of events.
- InclinedPlane 14y agoIt's worse than that. What happens when the event organizer, operating 100% in good faith, buys equipment, pays for airfare and lodging for special guests and event staff, pays deposits for the space, etc. and then due to events outside of their control the event has to be cancelled (perhaps due to a hurricane or maybe the bass player in the band decides to go into rehab and the concert gets cancelled, which happened to me once and they refunded me all but $5 of the ticket price back)? Now the event organizer doesn't have enough money to pay everyone back. This is part of the reason why "service charges" and "convenience fees" are so high when you buy tickets in advance, because it can rapidly turn into a giant cluster fuck.
- derefr 14y agoThat sounds like a reason to run every event as an individually-incorporated LLC, and then, in such a situation, let it go bankrupt.
- wasdman 14y agoIn my state (Indiana) they are not even licensed. Other places where they do adhere to the law, they are a money transmitter. In Indiana, that only allows money holding up to 10 days, unless law enforcement files paperwork with a judge. So yeah. I will use them. But if I have any problems with them, I'll take them to small claims over non-compliance with the law.