Can a bank deny a payment processor?

[avg123]

Lets say someone creates a payment processor like Mastercard. And he allows it to be used on onlyfans. Can a bank say we dont want to work with the payment processor because it allows onlyfans transactions?

[Levent]

Yup

[Sarra]

My bank banned PayPal for a while, so yea, it's possible to ban a payment processor.

 

Likely, is another story, however, since banks would be turning down income from fees and what-not.

[Arika]

Banks can ban entire merchant categories (gambling, liquor stores, tabaco stores being the main ones) so they can absolutely ban a payment processor.

 

But there would need to be a good reason for it. They wouldn't just ban a payment platform because it's used on something like OF.

[Kilrah]

It's unlikely your payment processor would get banned by banks just for that reason, but it's also unlikely your payment processor would survive anyway since the whole issue the existing ones have with such sites is the amount of undesirable activity that comes with the content type e.g. scams leading to chargebacks, the payment processor has to take the blunt in many cases and it hurts their bottom line.

 

Banks will start having trouble with it if you don't and the chargebacks start to affect them instead of you.

[avg123]

12 minutes ago, Kilrah said:

It's unlikely your payment processor would get banned by banks just for that reason, but it's also unlikely your payment processor would survive anyway since the whole issue the existing ones have with such sites is the amount of undesirable activity that comes with the content type e.g. scams leading to chargebacks, the payment processor has to take the blunt in many cases and it hurts their bottom line.

 

Banks will start having trouble with it if you don't and the chargebacks start to affect them instead of you.

follow up question: can a payment processor just not support cashbacks? Once paid no refund type of deal? Is there any law that mandates cashbacks?

[Kilrah]

Don't know about the laws, but it's pretty certain nobody would want to use that.

 

If you pay $200 for something, get scammed / don't get what was advertised and have no way to get a refund then you're not going to continue using the service...

[avg123]

2 minutes ago, Kilrah said:

Don't know about the laws, but it's pretty certain nobody would want to use that.

 

If you pay $200 for something, get scammed / don't get what was advertised and have no way to get a refund then you're not going to continue using the service...

what if onlyfans had its own payment wallet? you load up the wallet with say $1000 dollars and then use that fund to pay for models. that would clear mastercard or any payment processor of any responsibility right?

[Kilrah]

Probably, but having to prepay would turn a bunch of people away.

 

[Amias]

The bank wouldn't even answer the phone with you to engage in having to enact a ban.

[Arika]

58 minutes ago, avg123 said:

what if onlyfans had its own payment wallet? you load up the wallet with say $1000 dollars and then use that fund to pay for models. that would clear mastercard or any payment processor of any responsibility right?

And how would you get money into the wallet in the first place?

 

Also i don't know how many people would feel comfortable with such a site "holding" their money until they decide to use it.

[avg123]

6 minutes ago, Arika S said:

And how would you get money into the wallet in the first place?

 

Also i don't know how many people would feel comfortable with such a site "holding" their money until they decide to use it.

but it would eliminate cashbacks to the the credit card. any refunds would just go to the wallet. amazon pay wallet is pretty successful. i would feel more comfortable with a limited fund wallet rather than recurring charges to a credit card.

[LogicalDrm]

-> Moved to Off Topic

 

This isn't about tech, even when results might effect tech-side.