Comment by edmundsauto | Hacker News Reader

Comment by edmundsauto | Hacker News Reader

Youssef, thank you for bravely posting. I think you have done an amazing job and almost certainly should ignore my feedback.

I would not be interested in lowering fees - as someone who sends but does not collect payments - because of the risk of fraud and the unknown risk of fraud.

Because I don’t carry the cost (your customers do), I would not be interested in doing something that appears to reduce my protections. I think bank transfers, by virtue of being debits from my account instead of essential a PO, are much higher risk on me and my card.

I would almost always use cc instead of a bank transfer for this reason. Unless I knew a company that I bought from was paying crazy fees after I had established a relationship. If my sales POC from $vendor asked me personally to save them some cash, I might consider it.

Grain of salt, but it sounds like you are trying to serve a two sided marketplace and have put all of your focus on one side - because who wouldn’t like to save on the extortionate cc fee?

Yet you need to convince the customer to put their info in. Why would they? What can you offer me to take that risk?

Thanks for your feedback!

Let me clarify a few things. It may seem counterintuitive, but we don't need your credit card information to process a payment. You'll be redirected to your bank's app to complete the payment, which is more secure than simply inputting your credit card details. This might seem counterintuitive at first because anyone with your card details could make a payment. However, with 'pay by bank,' you'll be asked to authenticate the transaction using FaceID or whatever method you use with your banking app.

From the merchant's perspective, statistically, you're more protected from credit risk because an ACH transfer is more likely to go through than a card payment.

As for market positioning, we ideally want to partner with businesses that operate in a B2B model. We only facilitate payments from end users to merchants - it's a one-way flow. But to be honest, we're still figuring it out!

Not the prior poster, but it seems like you’re missing his point? From my perspective, I’m far, far more uncomfortable about authenticating through my bank than providing a credit card number - that feels like I’m potentially granting a bad actor carte blanche to the keys to the kingdom, whereas I can always dispute a fraudulent CC charge.

Alright, I understand! The difference between providing credit card information to the merchant is as follows:

Credit Card: When a merchant has your credit card information, they essentially have carte blanche. They can initiate payments and so forth.

Pay by Bank: The merchant has no information about your bank. They can only send payment requests through LeetPay. We then initiate the payment when you authenticate with your bank and accept the merchant’s request. There’s no carte blanche here!

To be more direct, I am willing to give out my cc number because that isn’t my money. Not immediately. I rarely would give access to my bank account, security protections notwithstanding, because then money isn’t buffered by credit card anti fraud and customer friendly policies.

What I’m saying is as a customer, I perceive receiving a great deal of value by having it on a credit account that I pay later and not a debit account that I pay immediately.

ok. We don’t support this options rn. I understand that end users might prefer to have different funding options. But for now it’s either your checking or savings.

That's the crux of my feedback - you need to find a way for customers to perceive this as the superior option to credit cards. There are some hard facts and you will be fighting uphill against reward points + all the PR that credit card companies have created over the past 50+ years - chargeback ability, increased warranties, arbiter of charges.

Because the customer sees only the benefits of a credit card and the (perceived) increased risk of doing it through their checking account. You will need end customers to want to use their banking info in order to be successful.

I am actively considering your suggestions. Initially, it might be challenging to go beyond cards in terms of benefits, as you mentioned. Innovation will be crucial in addressing this, as it was also a point raised by the majority of the people I spoke with.

As for market positioning, we ideally want to partner with businesses that operate in a B2B model.

That's not the vibe I got — and, even if so, why would they want to use this?

Also, the name of the service sounds like something cryptobros or gamers would use; it does not sound professional whatsoever.

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