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How do you deal with fraud in this type of site? It seems like anytime you are offering a conduit between a credit card number and a bank account you are at ri
by aquark 13y ago
How do you deal with fraud in this type of site?
It seems like anytime you are offering a conduit between a credit card number and a bank account you are at risk of someone push a large number of fraudulent transactions through and hoping to cash out before the chargebacks start.
Payment providers clearly have this problem (ie. Stripe does itself), but as a small startup it seems like a pretty daunting risk. Why not use Stripe connect in this case and simply get the couple to sign up for their own Stripe account?
- collision 13y agoIt's user-dependent. Stripe provides users with some protections (e.g. against card-testing), and then users will verify their platform's sellers in a way that makes sense for them. Lyft and Sidecar collect drivers' licenses from drivers, and only pays them out in proportion to the amount they drive. Homejoy trains cleaners, and each user rates the cleaner. And so on. Fraud is heterogenous by nature.
- aquark 13y agoThanks for responding. It certainly makes a lot of sense for a business model like Lyft or Sidecar where their is a significant relationship between the company facilitating the payment and the service providers receiving payment. For the OPs case though there seems to be a huge amount of risk: a 'couple' sign up, then other 'friends' start sending them money.