Seller's Responsibility or a Payment Gateway (Paypal/Stripe)'S Responsibility

2 points by devjp 6y ago ↗ HN

I have website selling service and customer pay through Paypal/Stripe. When customer make an order, I sent him an invoice. If I receive notification from Stripe/Paypal saying that I get a payment, then I deliver the work.

Problem happens when a buyer use a stolen credit card to Paypal/Stripe and use it to buy service.

My questions are: - Who take the responsibility to check if a payment is fraudulent? A seller or a Payment Gateway (Paypal/Stripe) - How to deal with Stripe/Paypal fraudulent?

My point of view: I think Stripe/Paypal is a payment gateway service, it is their responsibility to check if a stolen credit card is used to make payment. A seller has not any method to check that. It is not seller's responsibility to check.

However, here is what happen if I use Stripe/Paypal. Stripe/Paypal tell seller: 1. Hey, you receive a payment, deliver the service. and we will take about 4% commission fee. 2. Hey seller, we are sorry, but the payment (WHICH WE ALLOWED) is fraudulent, buyer used stolen credit card, the owner of credit card (the bank) is making dispute, we will take the money from you and return it to credit card's owner, you still have to pay 4% commission fee, and chargeback fee...

What the F* is this? I has already delivered the service, it is impossible to take the service back, it is digital service, it is not a physical product. Moreover, you (Paypal/Strip) tell me that I get a payment, that is why I deliver the work. If you did not tell me, I would not deliver the work. You are liar, don't you? What is your responsibility in this case? (angry!)

So..., Stripe/Paypal take the commission fee, and take no risk. Whenever something happen, they send the risk/responsibility to buyer or seller. What a bad middle man! Now I know why Stripe/Paypal worth billions dollar.

(Sorry for my bad English)

1 comment

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planetzero 6y ago ↗

This is how all of these payment gateways work and it really sucks to be a provider of digital goods, because you will almost always lose disputes.

One of the reasons it's so easy to get access to a payment gateway is because there is no checks of your business up-front to mitigate the gateway's risk.

Before it was so easy, you had to basically have someone come out to your business and interview you before you were accepted.