Exchange's payment methods

[OmegaStarScream]

I've always wondered why a lot of exchanges don't support certain payment methods. To mention a few: Transferwise, Skrill, Revolut, PayPal, Neteller, Paysafecard etc.

I believe I already brought up this topic some time ago, but I'd like to have a more in-depth discussion about it. Sure, some of these companies have a policy against cryptocurrencies so I'd understand why exchanges can't simply implement them, but there are some who even have crypto integrated into their platforms. So what's the real reason? Neteller and Skrill for instance are only supported by BitPanda and Paybis as far as I know, while the rest is nowhere to find, except for P2P platforms and maybe on some exchanges that are listed on BestChange, but the fees are usually quite high.

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[Beparanf]

Those method is already available on exchange P2P section except paypal due to it’s dispute feature that will put the transaction at high risk. So i think the reason why crypto exchange doesn’t them directly is indeed due to company policy. They manage to allow it only on P2P since the transaction is between 2 parties and no crypto involved on sending the balance to the receiver. Exchange is just an escrow for the crypto fund which means they are exempted to the payment policy against crypto.

[dkbit98]

I've always wondered why a lot of exchanges don't support certain payment methods. To mention a few: Transferwise, Skrill, Revolut, PayPal, Neteller, Paysafecard etc

I am not sure for other payment providers you mentioned, but I know that you can demand chargeback in PayPal and that could create lot of complications and potential scams for exchanges.
Even Bisq exchange don't support PayPal and Venmo because of chargeback risks, but it could also be related with availability, transaction fees, and other issues.
https://bisq.wiki/Payment_methods

[noorman0]

I think it's because payment services still have internal policies that are not user friendly and it's too much trouble for exchange support to resolve disputes. In addition, such payment methods are generally offered by merchants through the exchange's own p2p service (hence it is unethical to compete with partners).

And as seen today, the top exchanges are more targeting their scalability as much as possible so that customers can make payments with any credit card directly.

[NeuroticFish]

To mention a few: Transferwise, Skrill, Revolut, PayPal, Neteller, Paysafecard etc.

PayPal with its chargebacks is a clear case, I don't have to say much. I'll only add that they sell bitcoin themselves, hence they will not allow others interfere their business.
Revolut is a similar case, they sell bitcoin (actually bitcoin-named IOUs, I think), so they may not allow it.
For the others... it may be laziness and possibly some high processing fees too. Plus, in some cases, anonymous payments can be a legal hassle they want to avoid.

But it may just be that since all the other real possible alternatives may be more expensive, they expect too few use those. I guess that asking the exchanges especially on social media may make them reconsider. But would many use those indeed?

[Findingnemo]

I've always wondered why a lot of exchanges don't support certain payment methods. To mention a few: Transferwise, Skrill, Revolut, PayPal, Neteller, Paysafecard etc.
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Even I am not sure the actual reason but recently I came across that some exchanges I usually trade removed the certain payments methods which existed in the past and the exchange itself promoting the p2p mode for buying their coins then start trading in their exchanges so they can avoid lot of complications in AML compliance and also get the benefits of trading fee double the time along with promoting their exchange's token.

[NeuroticFish]

But aren't chargebacks a risk with every reversible payment method out there? KYC should help businesses protect themselves against these things (to a degree). Shouldn't it?

I think that PayPal is maybe too "customer oriented" and allows chargebacks much easier than banks, for example.
Exchanges seem to prefer old school bank transfer. The few that allow Credit cards (another chargeback champion) ask for quite a premium there afaik.

As for them not wanting other services to compete with them, then I will have to disagree there. There were no exchanges that supported PayPal except for Virwox, for as long as I can remember and PayPal only started to offer crypto recently.

Well, if I'd be PayPal and I sell Bitcoin (or, even more, IOUs) at 21 000$, why would I agree to make business with Binance that sells Bitcoin at 19 500$? To allow the users get bitcoin cheaper and I'll have less profit?

And indeed, PayPal is new in this, but before that PayPal was prohibiting Bitcoin related transactions and there was also the aversion of every honest bitcoiner against PayPal for being scammer's heaven and allowing chargeback for everything related to bitcoin. So before it was even worse/riskier. Or am I missing/confusing anything?

[ololajulo]

I think P2P is the safest form of transaction of fiat to crypto anywhere in the world. It protects both the exchange and user. Regular transactions can draw attention of financial institution and may attract greedy government to start siphoning or engage criticism and unnecessary sanctions. Just like Uber that has no car and other online business that engage available resource in every location, thats the way I see P2P transactions. I dont trust other provisions by the OP not to have backdoor to government and later be looking to exploits users. Also exchanges dont need to use all those local fund for transaction or open bank account. Is the easiest and safest for exchange users and will be here for a long time