Often times to bank successfully you need large stagnant balances that are semi-frozen, or meaningful collateral.
This becomes problematic through payment provider platforms which other platforms build upon: it's not straightforward to manage these relationships through so many layers of abstractions. It's easier just to ban the industry.
I don't know the specifics of Kickstarter, but I've seen this happen countless times, so it's not difficult to connect the dots.
No, it has nothing to do with chargebacks. It's not even presented that way in their policies when they ban it. They consider it a "brand risk", which is completely different.
I also remember a story from someone I worked with in the 90s. At that time there were adverts in the back of newspapers for VHS tapes, very cheap. It would say "Get these 8 HOT VHS tapes for $4.99 inc shipping." People would call up and order on their credit card. The reality was the company would only send out a handful of these packages and then claim to be out-of-stock, then they would mail a refund check out to everyone else. The check would be from BIG TITTY BUSTY WHORES LLC or something. Literally nobody would cash the check.
There hasn't been sufficient reporting on all the lobbying and back-room dealing.
The banking industry shrieks about fraud and chargebacks yet gyms, which are basically the scummiest retail businesses on the planet aside from payday lenders, are allowed to use the ACH system and get direct access to money, not credit - that is a royal pain in the ass to revoke?
So much so that my state has an entire set of laws devoted toward curtailing the gym industry's various shitty cancellation policies? I believe they're even prohibited from requiring ACH payment - they must offer other options.
And what about all the local newspapers that make it impossible to cancel? Or all the made-for-TV product companies?
