If you're a startup, don't bother with payment platforms - kingmailer
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kingmailer
For those not in the SaaS-business, chargebacks are VERY common, and if you're
just starting with your company, this can really hurt your company.

Even PayPal is not your friend, PayPal ALWAYS favors the customer, when they
create dispute, you'll be the guy loosing the money, even if the customer
broke all of your TOS...

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kingmailer
Sure, it's very attractive, suddenly you can accept all sorts of payments, but
what you won't know, are the massive chargebacks -- 25 usd per chargeback.

This means, if your product costs 10 usd, you just lost 35 usd revenue.

That's payment from 3,5 customers, if 2 customers create chargebacks, that's
70 usd gone from your account.

And the best part? The payment provider will just "suspend" your account
because "they invented a reason, without any warning upfront", and just steal
your money.

Pretty fun?

Just do it the old fashion way:

Negotiate with your customers, and send an invoice, old fashion way, but more
reliable for your company.

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allanmacgregor
What are you suggesting? Rolling out your own integrations? Going through the
implementation and PCI compliance?

No offence but this is a dumb statement.

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kingmailer
Hey, if you feel like donating all of your hard earned money to the payment
platform, it's your choice. Good luck with that, as I gave my example.

2 charge backs will cost you 50 usd, if your product costs 10 usd, it's 70 usd
gone.

Your competition, can create 1000 creditcards, buy a product from 5 usd from
you, and create chargebacks, good luck.

And no, not suggesting, but ADVISING, if you want your startup to succeed, go
the old fashion way, don't trust the middlemen so much with your money :-)

And you don't have to take my advice, no one is forcing you

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wandering-human
How does one charge a customer then out of curiosity? I always thought it was
impossible without some middle man. Can one send request directly to visa,
master card ect.... How does one do that then?

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kingmailer
ACH routing cost within the US is less than 2 usd (check with your bank)

The problem is with the chargebacks

If you’re a startup (just started), chargebacks will be unbearable as it is
hard to acquire new customers

One customer that paid 5 usd and did a chargeback, will cost you 30 usd (your
earnings from 6 clients)

Best is to ask the customer in this case if he can pay per year or just old
fashion bank transfer, it sucks, but these will be customers that will be more
serious to stay and to use your product

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roschdal
PDF invoices are the future

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kingmailer
I agree

