There is already btcQuick - in case you guys did not know. Check it out - I am a satisfied customer.
Topic: CC => BTC (Read 601 times)
The problem is that the steps legit people would have to go through to make a purchase are an extreme hassle.
If folks absolutely need to use a line of credit, it's just going to be easier to get a cash advance and use something like BitInstant.
If folks absolutely need to use a line of credit, it's just going to be easier to get a cash advance and use something like BitInstant.
Good point , it becomes a hassle for people legitimate customers wanting to use a CC for convenience. It basically goes against the whole point of convenience.
Not to mention the extra fee's customers would have to pay to make up for cc transaction fee's a provider would need to recoup. This is in addition to the normal exchange fee's a service would charge. So suddenly your paying high fee's for something that in the end is just as convenient as other options available with less fee's.
Also the process of providing ID and a phone (which you can later claim was stolen) isn't enough to deter a criminal from making a quick buck. If I know I can buy 5 bitcoins (about $1,000) and I can get my money back and keep the coins simply by telling my CC company that my car or house were broken into. I will gladly fill out the proper ID info.
So in the end.... you end up driving away most legitimate customers but create a gold mine for scammers. This is why CC > BTC wont work and it's why no one is trying it.
Documenting blockchain to show a transaction was made does nothing to prevent someone from saying they didn't make the charge. Requiring ID does nothing to stop someone from saying their ID and credit card were stolen. Two form Auth also does nothing to stop someone from claiming their CC and phone were stolen.
I hate to burst anyones bubble but the FACT is that accepting CC's for BTC will NOT work. CC companies only allow a small % of chargebacks before they close down any ties with you, I believe it's around 2% . Meanwhile CC companies will honor about 90% of chargeback claims a buyer makes. So do the math... you're only allowed to get scammed 2% of the time, but buyers can get away with it 90% of the time.
Anyone who tries to set up CC for BTC will simply end up getting their accounts with banks/credit card companies shut down probably within the 1st month. In addition to losing some money in the process.
I hate to burst anyones bubble but the FACT is that accepting CC's for BTC will NOT work. CC companies only allow a small % of chargebacks before they close down any ties with you, I believe it's around 2% . Meanwhile CC companies will honor about 90% of chargeback claims a buyer makes. So do the math... you're only allowed to get scammed 2% of the time, but buyers can get away with it 90% of the time.
Anyone who tries to set up CC for BTC will simply end up getting their accounts with banks/credit card companies shut down probably within the 1st month. In addition to losing some money in the process.
Hmmmm, I see.
If you were really a legit user - it'd be a simple verification (since you have nothing to fear) - maybe Photo ID and a Phone authorization.
I think this is still far easier than BitInstant and other forms of buying (I still have money "tied up" in a BitInstant transfer)...
If you were really a legit user - it'd be a simple verification (since you have nothing to fear) - maybe Photo ID and a Phone authorization.
I think this is still far easier than BitInstant and other forms of buying (I still have money "tied up" in a BitInstant transfer)...
The problem is that the steps legit people would have to go through to make a purchase are an extreme hassle.
If folks absolutely need to use a line of credit, it's just going to be easier to get a cash advance and use something like BitInstant.
If folks absolutely need to use a line of credit, it's just going to be easier to get a cash advance and use something like BitInstant.
no good
Good post!
No good.
Bump 
As we all know/read CC => BTC is about as tricky a business as any.
Scammers are rampant and chargeback folk are just as nasty.
However, as with anything new...something needs to give. My buddies and I are looking to try something similar to this, so I thought it might be a good idea to see what ideas everyone here might have regarding security and identification.
So I've classified the "enemy" into two categories:
1) Stolen CC's
2) Chargeback people (dishonest folk)
I'll try to map out some security measures to address each of these, and hopefully you guys can add more. It'd be nice to help legitimate people exchange CC => BTC.
1)
Stolen CC's.
We will be utilizing:
CVV2 Authentication
Address Verification
We will also utilize a 2-factor authentication (Authy) which texts their cell phone.
Finally, as Mt.Gox and other exchanges require (for verification), we may require a photo ID (picture taken and sent in)
2)
Chargeback folk that deny ever receiving the funds.
The best that we can do here is to utilize blockchain.info to prove that the transaction took place and that the BTC was indeed transferred.
We will also document our actions for transfer to make sure we are transferring to their provided wallet (after all CC approval checks out).
Any other ideas/suggestions would be very welcome!
Thanks!
Hopefully the vast majority of us honest folk would benefit from something like this (see BitInstant hating over on the next thread).
Scammers are rampant and chargeback folk are just as nasty.
However, as with anything new...something needs to give. My buddies and I are looking to try something similar to this, so I thought it might be a good idea to see what ideas everyone here might have regarding security and identification.
So I've classified the "enemy" into two categories:
1) Stolen CC's
2) Chargeback people (dishonest folk)
I'll try to map out some security measures to address each of these, and hopefully you guys can add more. It'd be nice to help legitimate people exchange CC => BTC.
1)
Stolen CC's.
We will be utilizing:
CVV2 Authentication
Address Verification
We will also utilize a 2-factor authentication (Authy) which texts their cell phone.
Finally, as Mt.Gox and other exchanges require (for verification), we may require a photo ID (picture taken and sent in)
2)
Chargeback folk that deny ever receiving the funds.
The best that we can do here is to utilize blockchain.info to prove that the transaction took place and that the BTC was indeed transferred.
We will also document our actions for transfer to make sure we are transferring to their provided wallet (after all CC approval checks out).
Any other ideas/suggestions would be very welcome!
Thanks!
Hopefully the vast majority of us honest folk would benefit from something like this (see BitInstant hating over on the next thread).
Jump to: