Topic: Asset as cashback on purchases (Read 296 times)
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That's true, unfortunately I guess I'll just try my luck without them. Thanks for the advice.
I'm creating a crypto asset in which will provide a minimum of 10% interest per annum however I know people would be hesitant to purchase any. So I want to add intrinsic value to add by adding it as cashback on purchases made on my accounts (eBay, amazon) for example say I sell something for $2 I will send the buyer 1 asset as a way to distribute them, my only concern is what if the buyer issues a charge back and they get their money back and I'm out of my crypto. I know this would be no issue for bitcoin but I want to reach the masses so I would also like to use EBay and Amazon. Is there anyway to prevent these chargebacks or is that just part of business?
So basically an airdrop for customers that buy something from one of your merchant accounts, correct?
Chargebacks will be hard to avoid, but you could a) timelock the cashback transaction until the time where it's too late for a chargeback or b) send your asset as is, but stop repeat offenders from getting future cashbacks (ie. eat the asset loss for the first cashback, but don't give out a second cashback for the same customer after the first chargeback). Since buyers are not anonymous on amazon / eBay this could still be viable against major abuse. However I think that if you get a lot of chargebacks just from people trying to get to your crypto you'll have other problems to think about than running out of crypto.
Well said but there are problems with both solutions with a) eBay uses PayPal which gives buyers a very long time to initiate a charge back (180 days) and that would be unfair to the buyer if they're legit as with solution b) I could take the loss and just leave it be however I will distribute dividends to my token holders and I don't want to keep paying those fraudsters payment that's not theirs. And with the anonymity with crypto they can easily switch to another wallet if their current one is blacklisted. I would prefer something line openbazaar but alas that had nowhere near the users as eBay and amazon.
Yeah, I remember PayPal having extended their chargeback grace period to 180 days, but as far as I know buyers can only file such a dispute if you fail to deliver (eg. didn't arrive or not as described). So this should be fine unless your product is digital, in which case you probably shouldn't use PayPal in the first place.
About option b): They can switch wallet, but they can't as easily switch their PayPal account / name and shipping address. But then again this also depends on what kind of product you are selling.
Either way, depending on how important your merchant account is to you, you should be more wary about getting chargebacks than sending too much crypto. PayPal is very trigger happy about freezing account funds.
Byteball is considering trying this actually. You can read about it here.
If you were to do this, you'd have to recognise that people would only have the incentive to buy, make the transaction and then leave the cryptocurrency until all of the asset had been distributed.
In Byteball's case they're clever enough to give current Byteball holders additional coins as well. They try and balance out the distributions between Bitcoin holders, Byteball holders and potentially merchants in the future as well.
If you were to do this, you'd have to recognise that people would only have the incentive to buy, make the transaction and then leave the cryptocurrency until all of the asset had been distributed.
In Byteball's case they're clever enough to give current Byteball holders additional coins as well. They try and balance out the distributions between Bitcoin holders, Byteball holders and potentially merchants in the future as well.
I'm creating a crypto asset in which will provide a minimum of 10% interest per annum however I know people would be hesitant to purchase any. So I want to add intrinsic value to add by adding it as cashback on purchases made on my accounts (eBay, amazon) for example say I sell something for $2 I will send the buyer 1 asset as a way to distribute them, my only concern is what if the buyer issues a charge back and they get their money back and I'm out of my crypto. I know this would be no issue for bitcoin but I want to reach the masses so I would also like to use EBay and Amazon. Is there anyway to prevent these chargebacks or is that just part of business?
So basically an airdrop for customers that buy something from one of your merchant accounts, correct?
Chargebacks will be hard to avoid, but you could a) timelock the cashback transaction until the time where it's too late for a chargeback or b) send your asset as is, but stop repeat offenders from getting future cashbacks (ie. eat the asset loss for the first cashback, but don't give out a second cashback for the same customer after the first chargeback). Since buyers are not anonymous on amazon / eBay this could still be viable against major abuse. However I think that if you get a lot of chargebacks just from people trying to get to your crypto you'll have other problems to think about than running out of crypto.
Well said but there are problems with both solutions with a) eBay uses PayPal which gives buyers a very long time to initiate a charge back (180 days) and that would be unfair to the buyer if they're legit as with solution b) I could take the loss and just leave it be however I will distribute dividends to my token holders and I don't want to keep paying those fraudsters payment that's not theirs. And with the anonymity with crypto they can easily switch to another wallet if their current one is blacklisted. I would prefer something line openbazaar but alas that had nowhere near the users as eBay and amazon.
I'm creating a crypto asset in which will provide a minimum of 10% interest per annum however I know people would be hesitant to purchase any. So I want to add intrinsic value to add by adding it as cashback on purchases made on my accounts (eBay, amazon) for example say I sell something for $2 I will send the buyer 1 asset as a way to distribute them, my only concern is what if the buyer issues a charge back and they get their money back and I'm out of my crypto. I know this would be no issue for bitcoin but I want to reach the masses so I would also like to use EBay and Amazon. Is there anyway to prevent these chargebacks or is that just part of business?
So basically an airdrop for customers that buy something from one of your merchant accounts, correct?
Chargebacks will be hard to avoid, but you could a) timelock the cashback transaction until the time where it's too late for a chargeback or b) send your asset as is, but stop repeat offenders from getting future cashbacks (ie. eat the asset loss for the first cashback, but don't give out a second cashback for the same customer after the first chargeback). Since buyers are not anonymous on amazon / eBay this could still be viable against major abuse. However I think that if you get a lot of chargebacks just from people trying to get to your crypto you'll have other problems to think about than running out of crypto.
I'm creating a crypto asset in which will provide a minimum of 10% interest per annum however I know people would be hesitant to purchase any. So I want to add intrinsic value to it by adding it as cashback on purchases made on my accounts (eBay, amazon) for example say I sell something for $2 I will send the buyer 1 asset as a way to distribute them, my only concern is what if the buyer issues a charge back and they get their money back and I'm out of my crypto. I know this would be no issue for bitcoin but I want to reach the masses so I would also like to use EBay and Amazon. Is there anyway to prevent these chargebacks or is that just part of business?
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