Kickstarter switches to Stripe

Re:Kickstarter switches to Stripe by derefr on Tuesday January 06, 2015 @01:42PM (#8846164)

Because the "security model" of credit cards involves shifting all seller-fraud risk onto the sellers using chargebacks. It's far easier—and good for business!—to trust customers' complaints 100% of the time, than it is to actually figure out whether a purchase is real or a spurious charge.

Especially now that virtual goods exist: as far as the credit card company can see from its vantage point, those are effectively spurious charges that the customer happens to say are okay.

[ Parent | on HN ]

Re:Kickstarter switches to Stripe by dragonwriter on Tuesday January 06, 2015 @02:18PM (#8846339)

> Because the "security model" of credit cards involves shifting all seller-fraud risk onto the sellers using chargebacks.

This is actually one of the two primary services that credit cards sell themselves on -- mitigating risk, primarily by protecting consumers from fraud, and permitting purchases on credit rather than out of available cash balances -- and its the feature that is most heavily sold to higher-end customers (the you can buy stuff you can't otherwise afford feature is sold more heavily, at least more equally to risk mitigation, to lower-end customers.)

[ Parent | on HN ]

Re:Kickstarter switches to Stripe by mike_hearn on Tuesday January 06, 2015 @07:03PM (#8848004)

I used to believe that too, but actually banks don't fully trust customers. About 40% of all chargebacks are resolved in favour of the seller.

[ Parent | on HN ]