
Why Stripe is the worst choice for your new startup business - herendin2
https://honest.cash/Olsm/why-stripe-is-the-worst-choice-for-your-new-startup-business-1569
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ukulele
They created a crypto startup that allowed you to purchase with stripe, then
had a bunch risky transactions come through, which they diligently told stripe
about. So stripe closed the account because it was high risk.

They were a magnet for fraudulent transactions and had a ton of support
requests on how to block various things; I don't really blame stripe for not
wanting to process them.

~~~
tptacek
They probably don't even have the option of supporting them; their upstream
banking partners have restrictions on these kinds of businesses.

~~~
herendin2
What do you mean by "these kinds of businesses?"

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tptacek
Cryptocurrency companies. Banks ban them.

~~~
olsm
Keys4Coins is not a cryptocurrency company. We are an online shop for pc
games. Your comment makes as much sense as it would saying Steam is a
cryptocurrency company when they only accepted Bitcoin for payments.

~~~
tptacek
Do you accept cryptocurrency in exchange for USD-denominated gift cards?

~~~
herendin2
If you don't know the answer to this question, why are you making these bold
declarations about the company?

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chrisoverzero
He knows that they do -- it's on the Keys4Coins front page.

In case this is genuine confusion, this is a rhetorical device. _i.e._

A: "Do you want to go get ice cream?"

B: "Is the Pope Catholic?!"

The (obvious) "yes" to the second question is an indirect answer to the first.

~~~
herendin2
It's hard to believe that tptacek knew that already, but did not say it
clearly 3 days ago, when the company was described as a "crypto startup". Why
would he waste everyone's time with such rhetoric games?

------
edwinwee
I help manage support at Stripe. While we can’t discuss an individual
business’ situation publicly (feel free to write us at support@stripe.com), we
agree that the emails here were confusing. I’ll look into what happened here
and how we can fix any underlying issues.

~~~
drcongo
Serious question: Is initial email support with Stripe handled by bots? Every
time I've had an issue the replies from support@ have been so bad and so
unrelated to the questions that I'm asking that I've resorted to calling it
out publicly as a bot on Twitter. Only after I've done that do I start getting
replies that are sane and relevant.

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sudhirj
The article could also be called “Why selling crypto for real money tends to
attract every card thief on earth and is the worst choice of business for your
new startup”

~~~
cotelletta
But also "why customer support has turned into a pointless exercise of copy
pasting with zero understanding or decency".

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blairanderson
You're a Crypto business, there is no good payment processor for your startup.

~~~
sadris
Stripe literally says in their tos that you can't use their service to buy
crypto

~~~
herendin2
But the company is not selling that and their customers are not buying it.

Then, does that Stripe TOS rule relate to this case?

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ganeshkrishnan
"Worst" choice? The reason Stripe exists is because PayPal is hard to trust.
Don't even get started on Google Wallet/ Google pay.

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alphabettsy
Your business is specifically of a restricted type according to their site.
Why was this a surprise at all?

~~~
herendin2
Why and how is their business of a restricted type?

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briandear
With a domain like “honest.cash” what’s not to love?

~~~
briandear
This is being downvoted however the irony is clear: this business seems to be
a magnet for fraudulent transactions, so “honest” is a bit funny to me. I have
been with Stripe since 2010 and have processed thousands of transactions with
only two or three fraudulent transactions during that time period, this
company is open five minutes and has to go to pretty strict lengths to combat
fraud. It seems like that is a type of business that Stripe is better off not
serving. The higher costs for serving those types of businesses means higher
costs for everyone else who aren’t working in high-risk areas. Perhaps Stripe
could have a higher fee tier for higher risk businesses — such as a 10% fee,
but given that payments are such a compliance nightmare, even that doesn’t
seem like a good idea.

However, thinking outside the box, it seems that the person who wrote the
article might have stumbled on his next startup: Stripe for high risk
startups. If the current market isn’t meeting defined needs, create a company
to meet that need. If such a company doesn’t seem viable, then who could blame
Stripe for not wanting to assume similar risk?

~~~
detaro
It's not their domain, it's a blogging platform they use.

