It's sad that some people can't earn a living because their "craft" is deemed to high risk by The System, but what's the alternative? That everyone else subsidize their high risk "craft" by paying higher processing fees?
1. Allow no-chargeback services that must be text-message verified.
2. Accept adult-content payments, but don't release the money until after a chargeback window (e.g. 60 days), thus isolating the credit card from any risk.
3. Pass-on the chargeback rate (I imagine it can't be higher than 20%) to those wishing to do business as a cost-of-business fee.
The fact that these aren't happening to me suggests it's not primarily about money.
Consider: All of those options require patreon to do significant work to accommodate that business on their platform. All of them also have significant profitability implications for everyone involved. All of them require vigilance to ensure that all content which should be subject to those rules is, and that you have clearly communicated the nuance of which charges are subject to which rules and fees.
Still sound easy? Maybe you should apply for a job there!
Doubt this is possible, considering the payment processor and the customer's bank are separate entities. Although 2 factor authentication for credit cards kinda exists in the form of 3d-secure, but even that's really flakey in terms of adoption (merchant, payment processor, banks).
> 2. Accept adult-content payments, but don't release the money until after a chargeback window (e.g. 60 days), thus isolating the credit card from any risk.
chargebacks can be initiated up to 120 days from time of purchase, so that's quite a long waiting time. plus it does nothing to prevent people using stolen credit cards to get stolen content. why pay $50/month to access "patron only" content when you can buy a stolen credit card for $1 and use that instead?
>3. Pass-on the chargeback rate (I imagine it can't be higher than 20%) to those wishing to do business as a cost-of-business fee.
this ignores the fixed chargeback fee ($25?) that merchants get hit with when a chargeback occurs. what will you do when a carder sends all his stolen credit card your way?
finally, doing any of the above costs support reps, engineering time, etc., which only caters to a small % of potential merchants. so you end up with the situation we have today. "mainstream" processors who handle the 99% of non-risky merchants, and a few select payment processors that target the risky 1% niche.
The US is keeping its banking system primitive intentionally, as the government is hand in glove with greedy banks. Sending money whether to a business or an individual is free in India, for both parties.
But in the US, I give my card to many small businesses knowing that I've chargeback as a tool. The businessess also ensure quality and delivery timing because payment processor is closely monitoring their chargeback rates.
One friend told me that in India, banks can freeze your account without a court order, I am not talking about a loan or credit card default.
Sending money is never free, there is always a cost associated with the activity. So which exact transaction is free?