Comment by strnisa
5 months ago
Yes, Small Transfers can be used for pay-per-view or pay-per-minute billing models.
The platform's biggest risk that I see is a customer defaulting after using a merchant's service. The platform currently mitigates that with Stripe Radar, 3-D Secure, and spending caps, but I'm keen to hear anything specific you're thinking about.
> customer defaulting after using a merchant's service
I think the defaulting rate would just get baked into the asking price. But I'm assuming there isn't a way to repeatedly systematically default to get unlimited free content.
Each customer already has a limit on the amount they can owe before we require payment. Each customer account also requires a unique payment method, which must pass Stripe Radar and 3-D Secure checks. We plan to add more checks in the future.
I don’t know if it defeats the purpose but you could require an upfront, refundable deposit.
Requiring money upfront would classify the platform as an e-money institution, which is highly problematic from the legal perspective.
How does tarsnap handle it? I think there's lots of services that bill up front... Isn't it only e-money if you can convert it back to cash?
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> Requiring money upfront would classify the platform as an e-money institution, which is highly problematic from the legal perspective.
What if you just reserve it on the card?
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