[viraptor]

Would that put any extra requirements on them? They're not just a middleman in that situation, they actually hold the funds. That sounds close to the PayPal for a long time: we've got accounts and transactions and deal with real money but we really really are not a bank, promise, please don't regulate us as one!

[jordanb]

Alternately they could have patrons pay in arrears: You give your donations and then you pay at the end of the month. One transaction on the card and then it gets divvied up.

[thatfunkymunki]

That is how it currently works... I get one patreon transaction a month even though I have weekly pledges. That's part of what made this change so frustrating and greedy

[jogjayr]

Maybe they felt the cost of fighting fraud there would be too high? Scammer signs up as a patron to his own account with stolen credit card, gets paid, Patreon can't charge the (now-cancelled) card at the end of the month?

They could delay payments to creators by a month to combat this but then they're holding the funds for a month, which brings you back to the original problem of seeming like a bank.

This seems like something Stripe could address, maybe.

EDIT: Just saw the other reply that explained this is how it currently works. I'll leave my original comment up though

[caf]

Isn't that how Apple App Store / Google Play end up working as well, though?