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Comment by 3uler | Hacker News Reader

In my experience, having worked at several large PSPs, it is Mastercard and Visa who are the morality police. Stripe are just enforcing the rules insisted on by them, and PayPal forgot about them 3 layoffs ago.

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Then how do other processors go over the Visa and MC rails for these transaction types? How does Stripe allow some and then block others?

Which ones? Mastercard banned cannabis related changes before [1]

[1]: https://www.bloomberg.com/news/articles/2023-07-26/how-to-bu...

PayPal lets cannabis adjacent business get paid via MasterCard as a PayPal funding source.

Perhaps you are confusing cannabis with cannabis-adjacent business (grow lights, compliance solutions, etc)

Simply put, Stripe doesn't want to deal with the risk associated with those transaction types.

I know it's about risk. Perhaps my point was not clear?

Simply put: Stripe selectively applies their own policy about "restricted" transaction types.

You said it was about morality, so it was not clear you knew it was actually about risk. Each payment company has to set their own policies because regulations tend to be (intentionally) vague and not all companies have the same risk tolerance. If the legal risks weren't there, Stripe would absolutely accept these categories. You should really complain about the dumb AML regulations instead.

What do you mean "Stripe doesn't want to deal with the risk"?

What risk does Stripe take on in this situation?

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