

Ask HN: Do payment processors discriminate on credit history? - breathesalt

Has anyone here ever been discriminated against by a payment processor regarding their absence of a credit history--possibly resulting in the denial of your use of their service?
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OstiaAntica
It is "discrimination" as in "price discrimination" or "discriminating taste".

Without a credit history, you are a riskier bet because your actual behavior
with credit is unknown and unproven.

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breathesalt
I'm referring mostly to the use of services like paypal, not credit issuers or
services further down the pipeline. Do you know why a merchant's credit
history is even an issue? A merchant would be accepting payments, not making
them. There are no actions here involving credit on the merchant's behalf or
lending.

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breathesalt
For future viewers, I asked around and it appears payment services in general
do claim the power to run credit checks as a legal buffer/protection but
aren't done in a compulsory manner.

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omarchowdhury
Some do. Some don't. All processors have different underwriting policies.

