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A comment on What happens when you pay PayPal $15k in fees?. Parent comment

Re:What happens when you pay PayPal $15k in fees? by droopyEyelids on Friday July 07, 2017 @12:53AM (#14716165)
Chargeback rate is low, but:

1) NZ company operating out of Australia- complicated international ownership structure.

2) Industry is software. Software is a high risk product category.

3) Very quick unexpected growth in transaction volume. Another big fraud red flag.

This isn't an aggressive reserve, it's a defensive one.

[ Parent | on HN ]
Re:What happens when you pay PayPal $15k in fees? by pentae on Friday July 07, 2017 @03:33AM (#14716741)
Industry standard holdback rate is 10% for six months. I've been in the payments industry 15+ years and never heard of anyone holding more than 10% except for PayPal. Not giving a timeline on when the holdback is returned is also unique to PayPal. There's no defense here. What they are doing should be against the law.
[ Parent | on HN ]