[bprater]

You may want to seriously consider working on fleshing out this plan now. Paypal supposedly has thousands of people working in fraud control.

When word gets out that Stripe makes it "dead simple" to process credit cards without a merchant account, the vampires will come out to play. And I'm truly excited for a service like yours. We need this. But be prepared.

[jtheory]

PayPal isn't just a payments processor, so they have many more fraud scenarios to worry about than Stripe.

You can't use Stripe unless you have a bank account set up to receive funds, and you can't use Stripe to pay for things -- i.e., you can't launder fraudulent money by buying a ton of stuff online and having it shipped to an abandoned house.

In Stripe there's a very simple money trail, plus there's a week's delay before your charges are transferred into your account... which makes it tricky if you're hoping to run up lots of fraudulent charges then disappear with the cash before anyone notices. With PayPal the money trail could be very complicated indeed.

[sukuriant]

I became concerned with reading this statement. We need a lawyer to understand liability for laundering with regard to systems like Stripe

[jtheory]

If you're laundering money, you might want to consider in-house legal expertise, as well as in-house payments processing expertise.

If you're not laundering money, then (all other things being the same), you should prefer Stripe over PayPal, since it would be quite hard for someone to use Stripe for this purpose, hence they will have fewer money-launderers to deal with, hence you have less risk that you'll set off some obscure alarm and they'll lock up your account for months.

In any case, if you sell anything (online or off) you may want to learn a bit about the various risks and liabilities. Fraud does happen, and some businesses are at far higher risk.

I'm not sure the average lawyer will help much, though. They can tell you "yup, if someone buys a diamond from you with a stolen credit card and you ship it, you will not get to keep that money even if the diamond isn't recovered" (but don't you know that already?).

The more important advice is technical, and it's about all of the things you can do to reduce the risk of that ever happening to you.