IMHO, the best way to allow people to buy Bitcoins with credit cards is to do something like this:
http://www.reddit.com/r/BitSpend/comments/1gqjf8/an_open_letter_to_the_bitspend_team/
Basically, sidestep the currency exchange entirely.
Topic: Buying Bitcoin with credit cards / 3d secure (Read 6031 times)
if this happens, i think there will be more demand and price will go up.
In order to sell bitcoins by debit card as a business using 3DS systematically, you must have your own merchant account with your acquiring bank that will filter out all non-3DS transactions.
I am not aware of a bitcoin business successfully applying for such merchant account with their bank: are you ?
I am not aware of a bitcoin business successfully applying for such merchant account with their bank: are you ?
In theory it was always possible - several people selling BTC for credit cards reported that they were able to control chargeback rates using solid anti-fraud techniques and being careful.
The big problems are the high fees involved and the fact that you need to find a payment processor who is willing to let you do "high risk" currency exchange transactions. As anyone running an exchange knows, just finding a bank willing to let you do Bitcoin transactions is hard because they're all so afraid of vague AML laws. Finding a bank+a payment processor is even harder.
Anyone who manages it could make a lot of money though.
The big problems are the high fees involved and the fact that you need to find a payment processor who is willing to let you do "high risk" currency exchange transactions. As anyone running an exchange knows, just finding a bank willing to let you do Bitcoin transactions is hard because they're all so afraid of vague AML laws. Finding a bank+a payment processor is even harder.
Anyone who manages it could make a lot of money though.
I was recently surprised to find that Transferwise now accept credit/debit cards for funding currency transfers of up to £2000. This seemed odd because I had assumed that they would be massively exposed to charge-back risk.
On closer inspection they allow only '3D secure' enabled cards, the benefit of which is that it completely shifts the charge-back liability from the merchant to the bank.
Could we see BTC dealers doing the same for quick Bitcoin purchases?
On closer inspection they allow only '3D secure' enabled cards, the benefit of which is that it completely shifts the charge-back liability from the merchant to the bank.
Could we see BTC dealers doing the same for quick Bitcoin purchases?
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