I work at Stripe. Some details in the article aren't very accurate.
But, more broadly, we actually work hard to push against the rules in many cases. (Cindy Gallop, mentioned earlier in the thread, can attest to this -- we spent ages trying to figure out a way to accept payments for her startup.)
Absolutely - I am enormously grateful to Patrick and the team for doing everything you possibly could to persuade your bank to change their mind. Still gutted we couldn't make it work, and determined to generate as much social acceptability and revenue as we can to change their POV :)
In the end Stripe could not work with her or other startups that feature "a naked person" on the product they're selling (the article seems to claim), is that correct? I'm assuming then pay-for-porn sties are not permitted business with Stripe either?
Hm, okay. Though, it's not clear to me why porn sites en masse would be classified as "High Risk"? Are you sure this is always the case? How are current popular porn sites doing this?
And, now that Stripe is quite big, don't they have some leverage over the banks to be able to say they do want porn sites et al. to be able to work with Stripe?
The porn sites are classified as "high risk" because the banks believe/know that type of business has above average chargebacks. Apparently banks want to keep their chargebacks to a minimum.
Irony: http://makelovenotporn.com/ wants to make sex and the discussion around it socially acceptable and socially shareable - our mission is to change the way the world has sex for the better, via socially-shared #realworldsex. As such, we operate completely openly, transparently, legally and ethically, and I can count the number of chargebacks we've had in 20 months of operating on the fingers of one hand (couples watch our videos together, our community isn't hiding etc etc). But the financial world refuses to even have a conversation about the fact we do business differently and don't encounter the same risks. Which is why people regularly tell me we need to find a politician/lobbyist who'll support us, a la bitcoin/Uber lobbying, to redefine what constitutes 'adult content' and the legislation around it.
That makes two of us! Porn en masse shouldn't be, but it is.
As for Stripe's size, they are a tiny, tiny drop in the bucket compared to the world markets. Heck compared to a U.S based hedge fund they'd be tiny. I'm guessing they have very little leverage.
Do you think BTC or Stellar will help put downward pressure on the pricing model that Banks currently use for "High Risk" Merchants? My rate is essentially 15% because I'm a startup and my volume is so low.
Unfortunately, we didn't have the same Stripe experience as Cindy Gallop. We were never given the chancee to explain that we are a different type of business.
But, more broadly, we actually work hard to push against the rules in many cases. (Cindy Gallop, mentioned earlier in the thread, can attest to this -- we spent ages trying to figure out a way to accept payments for her startup.)