Author Topic: Donating to an open source project via bank transfer is never offered. Why not?  (Read 11556 times)

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Offline cedric!Topic starter

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My apologies for starting an off topic thread, I don't know where else on this forum to ask this.

I've noticed that none of the open source website offer a bank account number and an account name for donations.

What are the downsides of publicly listing a bank account / account holder name?
Why does nobody do that?
 

Offline ataradov

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You don't want to expose your own personal bank account, so you would need to make a separate one. This is much more complicated than registering for PayPal or any other payment processor.

You then will be receiving small payments from different countries, which may cause issues with fraud controls. You will likely have to talk about that to the bank at least once, may be more.

And sometimes people will type incorrect number and will want a refund, so you will be playing tech support.

International transfers are also expensive.

If you are doing this to save processing fees, it is not going to be worth it.
Alex
 
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Online langwadt

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You then will be receiving small payments from different countries, which may cause issues with fraud controls. You will likely have to talk about that to the bank at least once, may be more.

and unless you are taking many millions (i.e. the bank is making lots of money of you) the the bank might just close your account and tell you to find another bank they don't want you as customer
 

Offline Mechatrommer

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You then will be receiving small payments from different countries, which may cause issues with fraud controls. You will likely have to talk about that to the bank at least once, may be more.
and unless you are taking many millions (i.e. the bank is making lots of money of you) the the bank might just close your account and tell you to find another bank they don't want you as customer
sending or receiving money to or from another country is a matter of asking SWIFT code from your bank. i asked once and they gave to me, of course they asked why i need it, i told them i need to pay to international seller direct, no objection from them.. but then  guess what? i got conned, it was a long time ago... https://www.commbank.com.au/support.imt.what-is-a-bank-identification-code.html
Nature: Evolution and the Illusion of Randomness (Stephen L. Talbott): Its now indisputable that... organisms “expertise” contextualizes its genome, and its nonsense to say that these powers are under the control of the genome being contextualized - Barbara McClintock
 

Offline mikeselectricstuff

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It's not unusual for banks to charge 1-off fees of $20-30 or more for international transfers, making it uneconomic to do small amounts.
Depending on how the OS project is set up legally, they may need traceability of the source of donations, which IME you rarely get with an incoming bank transfer.
All this depends on both  the sending and receiving bank, so hard to predict.
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Offline Psi

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Welcome to payment monopolies.
They throw their weight around and lobby to prevent any cheaper payment methods existing.

There's a small chance that Twitter/X may do what they're suggesting they will and become the "everything app / wechat"  with fair payment fees.

Say what you want about Elon but he probably does have the reach and resources to push past all the roadblocks that have been put in place to make new payment methods so hard to setup.
« Last Edit: December 10, 2023, 10:56:56 am by Psi »
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Offline JohanH

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I'm no expert, but this is my observations. It's a very different situation within EU and Europe where the bank account isn't a secret and you can't basically scam anyone when they publish their IBAN (International Bank Account Number). And IBAN transactions are basically free within Europe. Then again, many European countries have strict laws with regards to donations and in my country it's basically forbidden to receive donations without a permit from the authorities (permit is usually time limited and you have to report etc.). So projects that end up receiving most money seems to be located in the US, where donations are permitted, and where PayPal, credit card and similar are more convenient to use. If the US implemented the IBAN system and the banks worked more like in Europe when it comes to money transfer, it would be another matter.
 

Offline Mechatrommer

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Welcome to payment monopolies.
They throw their weight around and lobby to prevent any cheaper payment methods existing.
apply credit card, register with paypal.
Nature: Evolution and the Illusion of Randomness (Stephen L. Talbott): Its now indisputable that... organisms “expertise” contextualizes its genome, and its nonsense to say that these powers are under the control of the genome being contextualized - Barbara McClintock
 

Online langwadt

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Welcome to payment monopolies.
They throw their weight around and lobby to prevent any cheaper payment methods existing.
apply credit card, register with paypal.

so your choice is VISA or Mastercard ..
 
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Online langwadt

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Welcome to payment monopolies.
They throw their weight around and lobby to prevent any cheaper payment methods existing.

There's a small chance that Twitter/X may do what they're suggesting they will and become the "everything app / wechat"  with fair payment fees.

Say what you want about Elon but he probably does have the reach and resources to push past all the roadblocks that have been put in place to make new payment methods so hard to setup.

the market cap of visa and mastercard put together is bigger than tesla
 

Offline Mechatrommer

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the market cap of visa and mastercard put together is bigger than tesla
i think the market cap for either food or clothing is bigger. no? card annual charge is only like $30 around here, just dont pay late...
Nature: Evolution and the Illusion of Randomness (Stephen L. Talbott): Its now indisputable that... organisms “expertise” contextualizes its genome, and its nonsense to say that these powers are under the control of the genome being contextualized - Barbara McClintock
 

Online langwadt

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the market cap of visa and mastercard put together is bigger than tesla
i think the market cap for either food or clothing is bigger. no? card annual charge is only like $30 around here, just dont pay late...

food and clothing is lots of competing companies, Visa and mastercard are two companies with pretty much a duopoly on payments
 
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Offline SiliconWizard

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I'm no expert, but this is my observations. It's a very different situation within EU and Europe where the bank account isn't a secret and you can't basically scam anyone when they publish their IBAN (International Bank Account Number). And IBAN transactions are basically free within Europe. Then again, many European countries have strict laws with regards to donations and in my country it's basically forbidden to receive donations without a permit from the authorities (permit is usually time limited and you have to report etc.). So projects that end up receiving most money seems to be located in the US, where donations are permitted, and where PayPal, credit card and similar are more convenient to use. If the US implemented the IBAN system and the banks worked more like in Europe when it comes to money transfer, it would be another matter.

Donations made outside of an organized structure (such as a non-profit organization) are problematic in many countries. While it depends on local laws, as an individual, past a relatively small amount, you'll be assumed to be doing business, doesn't matter if you call the income "donations" or if it's as if you sold a service. So you need to be registered to be allowed to do business and will be taxed on it as anyone else.

That's why many open-source projects past the 1-2 person thing do create at least a non-profit org. That solves the issue with relatively minimal overhead.
 

Offline Psi

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Welcome to payment monopolies.
They throw their weight around and lobby to prevent any cheaper payment methods existing.

There's a small chance that Twitter/X may do what they're suggesting they will and become the "everything app / wechat"  with fair payment fees.

Say what you want about Elon but he probably does have the reach and resources to push past all the roadblocks that have been put in place to make new payment methods so hard to setup.

the market cap of visa and mastercard put together is bigger than tesla

case/point.
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Offline Psi

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the market cap of visa and mastercard put together is bigger than tesla
i think the market cap for either food or clothing is bigger. no? card annual charge is only like $30 around here, just dont pay late...

That's less of the problem.
The problem is the 3.0 - 4.4% transaction fee the company is paying for accepting CC payments and the fact that you, as the consumer, are paying this.
All the prices have been raised to pay it.

« Last Edit: December 11, 2023, 06:34:46 am by Psi »
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Offline Mechatrommer

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I treat it as 'service'. Convenient to pay anywhere... since banks dont provide it. If you dont give the service, someone else will, as long as there's demand. Same thing with paypal elecrow and what not, they asked for some percent. Same thing with tesla  or any businesses for the sake, they charge for something..
« Last Edit: December 11, 2023, 08:21:15 am by Mechatrommer »
Nature: Evolution and the Illusion of Randomness (Stephen L. Talbott): Its now indisputable that... organisms “expertise” contextualizes its genome, and its nonsense to say that these powers are under the control of the genome being contextualized - Barbara McClintock
 

Offline Marco

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Maybe FedNOW and SEPA Instant will get integration?

Instant payments cause a lot of fraud though. Zelle is know for fraud and my bank refuses to implement SEPA QR support for fraud reasons. Perhaps it would be better if "instant" payments had a month of escrow.
 

Offline thm_w

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Welcome to payment monopolies.
They throw their weight around and lobby to prevent any cheaper payment methods existing.
apply credit card, register with paypal.

so your choice is VISA or Mastercard ..

Surely you can still pay via bank with paypal. But you'll still get hit with a fee that is close to CC, so not much advantage to doing it.
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Offline thm_w

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Maybe FedNOW and SEPA Instant will get integration?

Instant payments cause a lot of fraud though. Zelle is know for fraud and my bank refuses to implement SEPA QR support for fraud reasons. Perhaps it would be better if "instant" payments had a month of escrow.

But then you just end up with chargeback fraud + having to pay people to verify cases. Which just makes it into a normal credit card at that point.
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Offline Marco

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But then you just end up with chargeback fraud + having to pay people to verify cases. Which just makes it into a normal credit card at that point.
Require a court order, should limit abuse.
 

Offline bdunham7

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Instant payments cause a lot of fraud though. Zelle is know for fraud...

Only because users are stupid.  If someone you don't know asks for Zelle (or Green Dot or Walmart gift cards or ....) for a transaction you should then know that they are a criminal trying to defraud you.  Should be easy, but people get conned every day.  It isn't the fault of Zelle.
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