> "By intelligently updating the credentials on saved cards that have expired or been replaced, CAU optimizes authorization rates to keep subscription payments recurring seamlessly."
This is the shady practice of charging people's new credit card when their old one expires or they replace it to get rid of their subscription accounts. People assume they'll rid themselves of their accounts on things like Postmates, but thanks to this shady shit they keep getting milked. In many cases they might not notice for a while and/or not be able to get a refund.
This should be completely illegal. It's extremely unethical. Customers should have to consent to sharing a new credit card with a service that they've only shared a previous one with. This "innovation" is rich people at rich companies figuring out how to screw people, many of them poor.
The other stuff is probably shady too, but $60 million of the $70 million came from this implementing this practice alone.
It's safe to assume that Stripe and Postmates set a large number of people back financially, some undoubtedly went hungry, some had trouble paying their bills. And Stripe does this for many other companies presumably.
As someone clearly smart and good enough to see the ethics of this practice, Patrick Collision should be ashamed of himself. Instead, they're bragging about it.