On: Stripe Is the New PayPal

[ebspelman]

Where do you think the refund for a chargeback comes from? With a 3rd-party aggregator like Stripe, it comes directly out of the merchant's Stripe account (i.e. Stripe's aggregated account with Chase Paymentech). If the merchant has already withdrawn all of their money from their Stripe account, then Stripe is left holding the bag.

Accounts with 1-2% chargeback rate are incredibly costly. Stripe is potentially having to pay 1-2% of that account's entire processing volume in losses.

Chargebacks don't magically get paid. Somebody is left holding the bill.

[codexon → ebspelman]

If a payment is reversed, fine. The buyer got all their money back.

But adding a $25 "administrative fee" or a $10,000 fine seems like a frivolous act, given how little effort is spent investigating chargebacks.