Topic: [ANN] 700,000 Cash Deposit Locations in Brazil, Russia, USA - BitInstant - page 7. (Read 58412 times)

It's been quite a while... any update on anything for Canada? 

Exactly.


No.

Moneygram, 7-11, Walmart, ect. are 3.99% straight thru.

Bitinstant charges the 3.99% fee, then ZipZap (an unaffiliated company) charges an additional fee on top of that.

I checked your website to buy bitcoins;

Interested in getting 500 USD worth of bitcoins, I see 3.99% commission. I'll receive 480 USD (so 20 USD commission).
When I click NEXT, it takes me to ZipZap. Now instead of 992 BRL (500 USD), it says 1059 BRL (533 USD).

So, to buy 480 USD worth of bitcoins, do I have to pay 53 USD? In that case, 3.99% in reality is 10%.

Thanks.  But the Bitinstant also increases with the amount purchased, correct?

The more you deposit the less the price per BTC because your talking about a $3.95 flat fee as opposed to a % so of course for smaller amounts its less

If my rudimentary math is correct you are effectively paying 7.48 per BTC

We are working to make it less confusing and other options to get bitcoins cheaper and faster, while keeping your transactions safe and secure.

If you PM me, we can work the best way for you to buy Bitcoin!

Don't forget, 90% of cash deposits are completed and paid within 30 minutes. For this high level of automation in addition to the high-risk nature, we pay higher processing fee's as well to bring you these premium services to buy Bitcoin.

Stay tuned as we have a new features and announcements coming out very soon that will rock the Bitcoin world.

-Charlie

I see. That is unfortunate, as it is confusing, misleading, and a nuisance to customers and potential customers.

So, when I try to make a $50 order, I must pay a total of $53.95 to receive $47.005 in bitcoins?

Does BitInstant accept money orders directly, so that customers might be able to cut down the spread some by avoiding the ZipZap charge?

The deposit slip you get from zipzap has the final amount you will need to pay - sadly we do not know in advance what the fees from zipzap will be and so can only tell you what we ask for from zipzap.

Ok. I'm trying to do this "ZipZap" payment stuff and it says I will receive ~$48.00 worth of BTC for a $50 order, but then when I begin to jump through ZipZap's hoops, I am told that I must pay $53.95, instead of the $50 I had expected to pay from earlier.

This seems pretty damn sketchy that I can't even be informed from the outset what charges I will incur.

I was going to complete the deal, but how do I know when I get to the cashier, they won't ask me for $60?

Buying bitcoins at walmart *sounds* nice, but I've found that in practice, it's actually quite a pain in the ass.

+1

You always say the right things Stephen 

In comparison, a merchant accepting credit card pays 2 to 3% in merchant fees (unless in travel or other high risk category where 8% or more is common) and the merchant still is exposed chargebacks, and doesn't get to spend the money for a couple days.

While I might pay several percent to buy bitcoins using fiat because I want them right now, the merchant can share the cost savings from bitcoin by offering a discount over fiat when accepting bitcoin as payment.   That is already happening in a couple instances.  Hopefully we'll see more of that.

I haven't used Bit-Pay or Bit-Instant so far. I'm certainly considering using them to pre-order a Jally, due to the importance of timing. Just because certain businesses and infrastructure are set up as of now, does not mean that you have to use them.

I am actually surprised you started off with exchanges to buy BTC. Is that common nowadays?

Dude, relax.

Your taking this way to personally, I'm trying to help you here and make sure you don't get shut down.

Yes, our parent company (We're closing a VC round and can't give that info yet) is licensed in over 20 states. We will be announcing it within 2 weeks or so.

Does BoA know your accepting cash from customers directly? Do you know who your customers are?
Yes, we partnered with TrustCash because they have written permission from the banks to do what we do.

Does Western Union know what you do?

Does your personal bank know your sending ACH and wire's to people whom you have no idea who they are?

Let's not debate this here, feel free to email me at [email protected] and I will share with you some of our knowledge.
Again, this is not my personal knowledge but of our attorneys.

-Charlie

Please state the MSB regulated activity we are engaged in?  

Those are requirements of an MSB which we assert we are not.  It is up to FinCEN not you to make that determination and we have formally filed to have them make such a determination.  If they determine our activity falls under the scope of an MSB we have every intention of filing.


So you have ceased your arrangement with TrustCash  (which allows "random people to deposit funds" into their business account that they then forward to your business account)?


No you are attempting to undermine a competitor and I am not your "bro".   We have filed with THE DEFINITIVE source, FinCEN.  It is their determination not yours that matters.   We are fully compliant with the law.  Either they will determine our business activity does not make us an MSB in which case filing provides no tangible benefit or they will determine our activity does make us an MSB in which case we will file.  It is their determination to make and thus we have asked formally for them to make that determination.

I have deleted the post which caused you to go off spouting lies about competitors.   I request that you either either state definitively state (quoting MSB regulations) which MSB activity we are engaged in or cease your false and unsubstantiated accusations.

Before "helping" competitors maybe you should take some of your own advice.   Please post your NY state money transmitter license number.  You ARE engaged in the transmission of funds for a third party making you a money transmitter in most states.  That requires state licensing in at least ten states.  I am sure you have those licenses and just didn't want to clutter your website up with them.

Wether or not Bitcoin is a currency, your still doing MSB related activities.

Your required to register as an MSB, keep an up to date AML Manual, attend BSA training, file SAR's, ect.

I haven't seen you at any BSA trainings yet.

Bitinstant, LLC (and her parent company) is licensed by the New York State Superintendent of Banks pursuant to article 9-A of the Banking Law.
Bitinstant, LLC (and her parent company) is registered with the Financial Crimes Enforcement Network (FinCen) as a Money Service Business (MSB).
and is also a proud member of the Financial Service Centers of America (FiSCA).

Additionally, Chase, Citibank, BoA, and Wells Fargo know what we do regarding Bitcoin. Your BoA account will be shut down as soon as they catch wind, as will Western Union. The legalities of allowing random people depositing into your business accounts is very debatable.

Look, Im not putting down your business. Im just saying that if your doing actual volume, you need to get your shit together because you cannot fly under the radar. Bitcoiners will depend on you and when you can't come thru, they will hand your ass to the vultures.

I'd be happy to share any knowledge I have with you, we have an attorney who works for us full time and we can help you put together an AML manual.

We're all friends here, competition is a good thing bro.

-Charlie

I will leave the thread but I have to refute this falsehood.  FinCEN has not made any declaration that Bitcoin is a currency.  As such the purchase of bitcoins hasn't been determined to be a currency exchange.  We intentionally limited the scope of our business to not be classified as a "money transmitter".  We don't issue stored value cards, money orders, or offer third party payment services.  Under FinCEN current definition we are not a money service business and are not required to file as such.

Still he have the highest respect for our clients financial privacy so rather than just accept the status quo we have requested an administrative ruling on our business activities and how it pertains MSB & KYC requirements.  They have not responded yet but are obligated to do so under federal law.  The request for an administrative ruling was sent by certified mail and signed for by an agent of FinCEN.  If FinCEN rules that we are a money services business then we will certainly file as an MSB we have 180 days to make our filing.

While I do not believe bitcoin status will remain undefined forever what matters under the law is the law as currently written and regulated.  If the law changes we will change with it.  Your belief that we need to file as an MSB is just that your personal belief.  What matters is what FinCEN determines and that is why prudently we asked for an administrative ruling to preemptively answer that question.

Stating we are not a legal enterprise is false.  I will give you the benefit of doubt and assume it is due to a lack of information not malicious intent.  We intentionally limited the scope of our operation so as to not be defined as money transmitter.

Still if you want to throw stones in glass houses there is certainly some question on your legal standing as a money transmitters.  A money transmitter requires licensing at the state level in at least 10 states and you have provided no information on your licensing status.

Please discuss your own service on your own thread. We need to keep this thread on topic for support issues.

As our company gets larger we can lower rates. Understand that we run a legal and large operation by bridging the gap between fiat and Bitcoin, which is not cheap. Most fee's go to our processors and lawyers. Your not running a legal operation, therefore when you do high volume the bank will shut you down and can force you to give up all your customer data, since you don't keep an AML and KYC Manual nor are FinCEN regulated.

We legally, keep our customers private and give them A+ premium service.

-Charlie

I'm in the UK myself and would love to make this work, but i'm not entirely sure where in asda you'd go to make moneygram payments - if you know how to make this work then let me know and we can release a guide.

We are looking into other options for use in the UK, and I am personally pushing this internally as it's an odd feeling not being able to make use of the platform I spend all my time building within my own country.