Hacker News Reader

yeah, I totally agree. My only nit was your claim that Paypal bears risk. Its true that their model comes with risk and they've built their business model in a way that they shift it to third parties as extensively and quickly as possible. Its a sore point with me in how Paypa, Visa, etc. operate. The merchant is rarely right.

View on HN

They bear risk if the merchant has just registered a new account, and that's the only PayPal transaction for the foreseeable future. How should they go recovering the chargebacks if your company has already filed bankruptcy?

If you transact $30M/yr, it's a totally different situation. When PayPal shifts the chargebacks/fines on you, they KNOW that at any given time you will be processing enough money through them that they can seize part of it in case you are not paying the fines.

I have been gob-smacked by how, as a buyer, Ebay[1] took my side so readily in a dispute. It seemed they were ready to believe anything I said. I would hate to be on the other side of that.

[1] I know Ebay isn't exactly the same as PayPal, but one owns the other.

And due to such policies they now have a ton of fraudulent buyers.

Reply on news.ycombinator.com