Comment by namibj
1 day ago
> 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?
1 day ago
> 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?
Online card holds typically expire in ~7 days (often sooner, depending on the issuer), which is too short for our use case.
I thought 30 days are an option at least when you can explain the reason/necessity to stripe?
Could be an option to funnel default-risky (as distinct from chargeback-risky!) customers to a customer-selectable hold amount rolling the per-transaction flat fee into basically a per-bill flat fee thus indirectly giving volume/commitment discounts to those that select 30-day intervals with large holds?
I guess ideally offer an option to force a billing (transaction finalization) to release the hold if a customer changes their mind (or just happened to use a debit card)...
Though even with 7 day holds it'd allow you to offer service to poor people (which mostly overlaps "people with bad credit") without the APIs having to maintain revenue margins large enough to just eat that default risk, and without having to hold onto any funds yourself.
Authorization hold periods are set by the card networks/issuers and by merchant category, not Stripe.
Even if longer holds were possible, using authorization holds as a prepayment proxy can raise regulatory/consumer-protection issues similar to holding customer funds.