Have any of you had experience with user Credit accounts - in the fashion of Fanduel.com. In this system, users use Credit/Debit cards or Paypal to pre-fill up their accounts. They can then use this money to make purchases/bets on the website.
Are there any drawbacks to using this system? It seems like a much simpler model than Stripe if it could be implemented to a marketplace, especially in cases of fraud. Transactions could be held in escrow until they were sufficiently completed.
Similarly, wouldn't this help avoid transaction fees? Maybe Fanduel is saying all account credits are essentially payments and then they allocate the money to its correct place on the site as credit? So the website is still using Paypal/Stripe, for all payments.
That could definitely save on transaction fees, but my observation is that customers want their spending money in their most liquid account possible, which for many is their bank account.
Even something ubiquitous like PayPal isn't usually available at retail locations.
Are there any drawbacks to using this system? It seems like a much simpler model than Stripe if it could be implemented to a marketplace, especially in cases of fraud. Transactions could be held in escrow until they were sufficiently completed.
Similarly, wouldn't this help avoid transaction fees? Maybe Fanduel is saying all account credits are essentially payments and then they allocate the money to its correct place on the site as credit? So the website is still using Paypal/Stripe, for all payments.
Forgive my ignorance about this stuff.