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by liuhenry 2071 days ago
The risk to PayPal is that Visa/MC no longer allow PayPal to transact on their network if aggregate chargebacks exceed some percentage.

I don’t know how the exact details iron out but this was a concern when I worked on a payments platform. PayPal enables transactions for merchants who don’t have a relationship directly with Visa/MC and thus are themselves responsible at some level.
1 comments
nkohari 2071 days ago
> The risk to PayPal is that Visa/MC no longer allow PayPal to transact on their network if aggregate chargebacks exceed some percentage.

PayPal processed 711.92B USD of transactions during 2019. [1] It's feasible that they'll hit a trillion dollars in PV this year. While it's true that Visa/MC could lock them out if they so chose, it's incredibly unlikely.

[1] https://www.statista.com/statistics/277841/paypals-total-pay...

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tzs 2071 days ago
How many of those transactions were with buyers who if PayPal were not available would have used their credit card directly instead?
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