[ripberge]

Seems like a lot of friction introduced into the purchase process, and $1 is extremely expensive. Stripe's chargeback protection is likely to be significantly cheaper for many transactions and they are guaranteeing no chargebacks! https://stripe.com/radar/chargeback-protection

[Adams472]

Thanks for sharing your thoughts. Chargeback protection is nice in that you can somewhat set it and forget it. But, there are a few drawbacks including having a tax on every purchase. (0.4% - 1.0% of gross revenue adds up!) Chargeback protection also acts as insurance, and the insurance issuer can decline to offer chargeback protection for suspicious transactions, which leaves you on the hook for the risk with that transaction if you accept it.

Where UpUp slots in is for those transactions in the gray zone. Declining a customer's purchase "because our payment processor said you are risky" isn't the best look.

Also, in many cases, such as rental, the value of the transaction is much smaller than the amount of the risk from the transaction.

Hope that helps provides some context on the different use cases as we see them.