I have been brainstorming with assistance and help from Mod Benson on building a platform wherein users can fund their mtgox account or buy btc / ltc using their credit card through e-wallet services something similar to payza or MB.
Buying BTC / Funding Mtgox
Some of the things to remember here is that this will be similar to fund transfer and the transaction will not be in realtime. It will take anywhere from 2 - 4 working days for the funds / btc to reflect in your mtgox account. The delay in funding is due to the intensive fraud screening that will be incorporated to protect the merchant that is myself from chargebacks.
Secondly, you will be required to add and confirm you credit card / debit card to one of the e-wallet services like MB or payza.
Selling of BTC.
This will be through the payment gateway bitpay. You will receive the mtgox weighted average USD rate sent to your Indian account within 24 - 48 hours through xoom or moneygram money transfer. The exchange rate offered will be the prevailing rate on that particular day.
By using this method, we can totally eliminate NEFT / domestic fund transfer within India.
Let us know your thoughts on this idea. If you have any suggestions / feedback, then let me know.
Voted No, because simply it does not work that way. CC and Debit card is a big big deal to handle with currency like Bitcoin. I still believe in India, if it is going to work it will work using traditional and popular methods like cash deposits, NEFT, RTGS ( Not even Net Banking ).
But you can try it with a different approach. Make this service available to verified people only. This can not be used as instantaneous, anonymous buy sell service.
Cheers
this is exactly what i had discussed with mod. It will be only for the verified people of bitcointalk forum members. It will be more of a premium club extended to only to forum members to begin with. Probably with low number of transactions.
If you see the statistics, when and how the chargeback occurs. It is when a merchant cannot prove the delivery of the service or product (which is in case of btc).
But how about you offer a product or a service along with btc so when there is a chargeback, you can show the product / service delivery to the payment processor at which point the customer looses the chargeback petition.
The case example below is if you are giving this service to all ( Non verified people too )
Lets say I want to kill your business. All I need to do is buy 5 CC from black market or skrill or payza accounts, complete purchase and charge back. Trust me even if you prove you have delivered products processor will think about your subscription now. Make it 10 and you have a very good chance of getting your account blocked, in some cases you will loose access to YOUR money for 180 days
To prevent all this, you will have to setup a good verification system and that will cost you. You will have to add all this costs to the margin which will make your service less attractive to people. Also as you are adding shipping in it, it will cost more. CC processors and others will charge around 3.5% minimum and that's crazy. You must also factor in the time cost of sending money to your base service providers and getting money back from them to your accounts.
In the case of verified people all of above is applied but with less probability.
Biggest drawback, this thing can not scale as the overhead mechanism to sell actual product is going to eat lot of margin and resources.
Cheers
