I am currently running a boostrapped startup that generates revenue. It’s basically a simple service that helps others sell digital downloads. We make use of Paypal and Stripe and take a 5% commission as the transaction happens. There is no risk for us as all the money goes to the seller immediately.
However, the Paypal API has lots of limitations and we now feel the need to take ALL payments and pay out to customers every week. But we are afraid of fraud. The limitations are:
- Turning some customers away based in India, Nigeria etc locations Paypal does not support.
- The Paypal API forces us to use the old interface for some reason. Can’t take advantage of the new design that Paypal has
- We can’t offer features customers would like, like refunds from within our dashboard. API Limitation.
- The code base will be a lot simpler with the newer method as there is lessing moving parts and we can use a unified library
- Slightly lower fees for customers if we use this new method
Does anyone have experience with fraud via payments? Should we stick with what we have or change?