

How California Law Put a Hot Payments Innovator on Ice - thinkcomp
http://www.americanbanker.com/issues/178_151/how-california-law-put-a-hot-payments-innovator-on-ice-1061147-1.html

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applecore
This doesn't make sense. Why are new payments companies like Square and
LevelUp allowed to operate but FaceCash is practically forced to shut down?

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hga
I'm not familiar with the other two companies, but these two sentences from
the article are really telling:

" _And instead of paying anywhere from 2% to 5% to accept a credit card, the
merchant would pay FaceCash just 1.5%. (The funds were withdrawn from the
consumer 's prepaid FaceCash account.)_"

The first tells you who this business threatens. The second why such a company
is typically licensed and has to put up a bond, for they are holding customer
cash which as we are all too aware can ... up and fly away in all sorts of
circumstances.

