After reading the “Cats 1, Kids 0” article from Regretsy, I just need to speak my mind. There is a saying in my office, “to know freedom is to allow freedom.”
You say, “So everyone should be free to accept credit card payments, yes?”
Why? Because of a few sick, ill souls that traveled before us on planet earth… they’ve really messed things up. To keep things in order, lawyers, banks, and payment companies have designed rules around “risk,” so we don’t repeat history.
Yes, people have sold presents for little children in need and taken the money for themselves.
Yes, this has even happened more than a few times with donations too as these sick people travel the world on money meant to help the needy.
That’s why we have formal institutions registered as charitable fundraisers licensed by states. I know a few that would help.
It’s not like Regretsy broke a rule (great research here). PayPal just decided they didn’t want to support helpless children in need. They’ve done it before. There are entire websites dedicated to hating PayPal.
I think PayPal is a great company, but too huge to be remotely great all the time. (Can you imagine managing 1 Million new accounts PER MONTH)? Wow. So what happens when good people (Regretsy ) get caught in the middle and boxed into the, “you’re too high risk” category?
For one, if Regretsy had more options at their finger tips, they probably wouldn’t care. They would just say, “your loss PayPal.” But with online transactions the way they are, most people probably haven’t looked at Google Wallet, Stripe, Dwolla, Secure Vault Payments, 2CO, Skrill, and the list goes on (Their are over 200 money movers globally). People just don’t know about all of the great options that are out there.
Shameless plug.. this is why I created InspirePay. So that non-profits, small business… heck, even enterprise companies, could have simple access to options. PayPal says no… boo hoo, switch to Dwolla (Ben’s a great guy and would be a great next step… you’d also save a ton of money on processing fees).
Industry Commentary: I think it’s also important to look at what we think we want as consumers, and what we really need. Most consumers think, “oh, PayPal is easy, just log in, and away you go.” Truth is, there is no relationship there. PayPal didn’t take the time to get to know Regretsy in the beginning. So when they see someone being creative and on the verge of high risk, they shut it down (like Burning Man a few years ago). When merchants take a little time connecting with a provider that cares, then hopefully all issues come up right away, before time and money are lost ( and children are let down on Christmas morning ). In this case, yea, a Merchant Account would have been a better angle. That, or working with multiple providers like PayPal, Dwolla, Google Wallet, and Stripe. If you had all four, who cares if PayPal decides your not a cool kid anymore. Truth is, you are a cool kid Regretsy. I’m sorry InspirePay isn’t live today. Won’t be until Christmas week. So until then, perhaps Dwolla and/or Stripe?