Topic: [ANN] Ghetto P&P -- Cheap Alternative to BitInstant for BDK Users (Read 3429 times)

This service is currently suspended due to extreme volatility and large shifts in the market outside the exchange rate. I currently do not know when services will resume. Apologies for any inconveniences, and thanks for business so far. Cheers,
Ben

They sent me a notice that they auto-enrolled me in overdraft coverage (which I thought was illegal) before even sending me an account number. 

Will hopefully have account info tomorrow. If not, and I still don't get a letter on Monday, I'll go to a physical branch.

PNC account opened. I should have all info needed within a few days. ING account is next on the list, and should be opened in a month or so.

Cheers,
Ben

Again ready for buys and sales. There is a temporary limit of 500BTC/day for ALL users which will be lifted within a couple weeks. Apologies for the downtime. Fixed ACH fee structure. If I messed anything else up, please let me know. 

I have not yet signed up for the PNC bank account, but house sale is scheduled for execution on the 30th, so I should have funds fairly soon to open up the "premium" account for free wires.

I currently intend to open an account at PNC within a couple weeks, and ING within a month. If you're interested in this service and meet the requirements (or wouldn't mind paying the non-depositor "sign-up" fee), let me know which bank you'd like me to open an account with (unless it's BofA -- they're evil. If you happen to live near me, I also refuse to deal with CNB).

BDK CDs will soon (within a month) be sold again (4%/32D, 9%/63D) if you'd prefer to "get paid" to open an account instead of paying a sign-up fee. P&P accounts may be "given" to BitInstant within a year or so if I start running low on time or something secret (on their side, not mine) happens. I will be subsidizing current account-holders' (who have used the service) transaction fees there if that were to happen, so it at least matches current "P&P" rates, but you'd also get the consistency and reliability (with regards to having staff) of BitInstant, among some other benefits I'll refrain from listing here.  I haven't talked to Charlie about this.


Cheers,
Ben

Will be ready for sales again either tomorrow or Wednesday (had a mess of accounts compromised, and need to wait for hardware to get here to better protect myself).

Cheers,
Ben

Incidentally, now that Dwolla has FiSync, you might find it useful to bug your credit unions to add FiSync support.  That way you can get same-day transfer of funds from your bank to Dwolla (and vice-versa).   Veridian credit union (which was an early investor in Dwolla) was the first to add FiSync.

Damn, now I'm sub'd and going to have to read this properly.

That's a clever and workable solution. Paypal does this as well to verify bank accounts, last I knew. They deposit $.83 in an account, and you tell them how much was deposited. Thanks.

TrustCash (and the services that use them, like BitInstant, AurumXChange, etc.) solve that by using the deposit amount as a unique ID.  So if I am buying $100 worth of bitcoins I might be asked to deposit exactly $100.41, where the .41 identifies whose order it was.

Had a successful $300 trial yesterday. Someone bought by depositing in my account through a shared branch. After I finally figured out the exact listed name of my CU and texted it to him, it took less than five minutes from him depositing, to that deposit showing up in my account, to having Bitcoins transferred to his wallet.

This "solution" can't scale, however. But - that was a good proof that this can work, at least with just a few people per month. All he needed was the state my CU is based in, the exact listed name, my account number, and his ID. Unfortunately (or fortunately for someone adamant about privacy), the person's name is not recorded in the transaction, so these need to be timely in execution, or I need the address from which a buyer is depositing. I don't think this would be a problem if transferring using PNC, but that hasn't been tested, yet (and isn't set up, yet).

I'm intending this solution to be part of a larger package of depositor services, to encourage folks' tolerance of lower interest rates. Typical US banks' overhead for rendered services costs them around 2-3.5% of total deposit volume annually, while they pay no significant amount of interest. Bitcoin lenders are in a unique position where spending 10% of deposit volume annually on user services is a drop in the bucket compared to the 80%+ non-PPT lenders pay annually for deposits, factoring in compounding.

If you are using a personal account at the credit union and accepting cash deposits from CU Service Center locations from around the country, you'll probably be getting a phone call from the bank manager soon enough.

Incidentally, when I deposit cash at a CU Service Center location (other than at my own credit union), I have always had to show my ID.  I've always only deposited to my own account so I don't know what they would have done if the account had a different name on it than mine.

Can you please take video of the first literal pineapple, starfish, or koala bear that shows up to do an in-person deal with you?  I'd really like to see that! 

Seriously though, another great idea Kluge, keep up the good work!

Dude, this is awesome.

Let me know if you need any help 

-Charlie

Well, if DBA allows you to deduct business expenses you're covered I guess. I was and am under the impression that running as DBA individual can not deduct expenses such as gas, telephone, buying/leasing a truck, etc. as in your example with a guy plowing driveways for tips.

It would be real PITA if at the end of year you would need to pay taxes on everything that went through your accounts especially if you manage to produce good volume instead of actual profits that you end up making for yourself with it.

Naw, I claim myself and related business as a sole proprietorship, so I get standard LLC deductions (business expenses) by individually filing my Schedule C form. I comply with DBA requirements (at least in spirit -- I am supposed to file with a county clerk basically just saying I am operating as "BDK" or whatever, but I'll wait until I move) by giving my name out publicly where I do business and noting that "I" am not a business entity. As far as taxes and regulations, I'm in the same category as the guy down the road who plows folks' driveways for tips when he's bored, except he may get to claim a new truck with a nice plow as a business expense -- I don't think I could get away with that. I am exposing myself to unnecessary risk, however, by not filing for LLCs (again, waiting until I move - shouldn't be more than a month, now), so if someone were to sue me with punitive damages awarded, it's possible I'd be personally bankrupted - but I dislike the potential burden of having to keep my finances separated -- I should talk to a CPA about that, because I have no idea if I actually have to keep separate bank accounts if I went with multiple LLCs instead of sole proprietorship, which'd be a huge PitA.

Cheers,
Ben

Regarding selling a commodity you may have a valid point. I was thinking from perspective of accepting fiat money from all over the place and moving them further out of you accounts (in order to buy and deliver bitcoins) which to me looked as money transmitting service.

about CPA it's better to consult with one IMO regarding taxes. My understanding as an individual you must pay taxes on all (gross) income generated, where as a registered business entity you pay taxes on net income after expenses.

with your logic you might as well start a casino, who needs to ask permission to run one, right? since we're all adults

I do not treat Bitcoins as currency for tax purposes, nor does most of the community (out of my ass guess), nor do most tax/legal experts I have heard from. It's simple sales/purchases of commodities, which does not require additional licensing.

If I buy blank CD-Rs on Craigslist, I do not need to apply for MSB licensing, nor do I if I sell them, even if I do both simultaneously. I can buy and sell at the same time, keeping in mind that users are buying and selling directly from/to me - they are not fulfilling each others' orders. Applying for separate LLCs for each individual service may be preferable, but I do not perceive any legal risk in providing ability to quickly buy and sell a commodity, and there is really no tax benefit as this is not particularly significant business as far as G/L goes. EIC is EIC, and I certainly won't be far above the poverty line this year.

What is a taxe? What is "additional licensing"?  

I'm an adult who want to propose a service to others adults, why on earth would I ask permission to do this to some others dudes?


(sorry, I'm dreaming awake)

Consult with a CPA (not the one run by usagi) about taxes, how it may affect your personal trade/services and  consult regarding registering as a business entity as it may provide better tax conditions.
Providing money transmission service probably require additional licensing