Coinbase Blog - Buy And Sell Bitcoin By Connecting Any U.S. Bank Account - page 2.

rexcoin

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Quote from: Stephen Gornick on October 27, 2012, 09:31:18 PM

Quote from: DeathAndTaxes on October 27, 2012, 07:22:31 PM

If you want instant access you give up private info,

So has anyone completed this process?

I looked at it with one of my accounts, for a small credit union, and they didn't recognize the ABA number, so that now requires the Challenge Deposit method. I won't use Instant for my other account, but I'm curious to know it others have finished the steps successfully and are just waiting on coins now?

I do see that the price is fantastic. Like right now there was a little dip, and I would have been able to lock in coins at just 1% over Mt. Gox Last (which is what Coinbase appears to be using). That's less than most methods for moving USD funds between exchanges (e..g, using Liberty Reserve, or a redeemable code and paying the fee). So this service will likely come in handy for those doing arbitrage as well.

Verified Successfully here with my bank - using instant verification

BoardGameCoin

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Quote from: Stephen Gornick on October 27, 2012, 09:31:18 PM

Quote from: DeathAndTaxes on October 27, 2012, 07:22:31 PM

If you want instant access you give up private info,

So has anyone completed this process?

I looked at it with one of my accounts, for a small credit union, and they didn't recognize the ABA number, so that now requires the Challenge Deposit method. I won't use Instant for my other account, but I'm curious to know it others have finished the steps successfully and are just waiting on coins now?

I do see that the price is fantastic. Like right now there was a little dip, and I would have been able to lock in coins at just 1% over Mt. Gox Last (which is what Coinbase appears to be using). That's less than most methods for moving USD funds between exchanges (e..g, using Liberty Reserve, or a redeemable code and paying the fee). So this service will likely come in handy for those doing arbitrage as well.

I have done the instant verification on two different accounts, both major US banks, and am waiting on about $400 worth of coins. The exchange rate isn't MtGox last, but its a decent one.

A random oddity is one of my later orders claims to be arriving earlier than one of my earlier orders (Monday vs. Tuesday). Not really sure why that would be, but whatever.

I'm definitely apprehensive about this being a fraud target, so I plan to buy and remove coins to cold storage quickly for the time being. If it seems to stay up for awhile I'll point friends here for acquiring coins easily.

-bgc

BCB

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BCJ

This instant bank verification is becoming more common in the US. In addition they even ask for your security phrases. I'm not sure about PayPal and amazon but I do know the smaller startups send you to a third party for this authorization. I don't know if they save the credential or tokenise for return visits. It would be interesting to hear from some with more knowledge of this process. I alway chose the instant verification process when available. I've done so for a number of years with multiple accounts any have yet to hear of a compromise. Besides any loss from that kind of compromise is already build into the banks operating cost and the customer is rarely if ever responsible for the loss. Nothing is totally secure but coin base is a top tier start up and I'm sure they are using a top notch verification service. And if you want to talk about trust and judgment by members of this board I'd trust coin base with a few grand and my bAnk credentials before I would have trusted bitcoinica or pirate with a few hundred. EAsy to say in hindsight but I'm just saying...

Stephen Gornick

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Quote from: DeathAndTaxes on October 27, 2012, 07:22:31 PM

If you want instant access you give up private info,

So has anyone completed this process?

I looked at it with one of my accounts, for a small credit union, and they didn't recognize the ABA number, so that now requires the Challenge Deposit method. I won't use Instant for my other account, but I'm curious to know it others have finished the steps successfully and are just waiting on coins now?

I do see that the price is fantastic. Like right now there was a little dip, and I would have been able to lock in coins at just 1% over Mt. Gox Last (which is what Coinbase appears to be using). That's less than most methods for moving USD funds between exchanges (e..g, using Liberty Reserve, or a redeemable code and paying the fee). So this service will likely come in handy for those doing arbitrage as well.

DeathAndTaxes

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Gerald Davis

For those freaking out about instant account verification ... PayPal has used it for over a decade now and Amazon payments does the same thing now. The reality is that 99.9% (likely short one or two nines) of consumers have an attention span of about two minutes. The verify by deposit and wait 3-5 business days results in profiles that are never completed.

It isn't some insane conspiracy. If you want instant access you give up private info, if you don't you wait for the deposits to clear. Both types of consumers win. The major issue isn't verification it is chargebacks. Dwolla got anhilated by charge-backs and they had both 8 figures in funding to absorb it and the ability to pawn those losses off on merchants (Tradehill, et al). Coinbase has neither. Will be interesting though.

Stephen Gornick

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Quote from: MPOE-PR on October 27, 2012, 09:34:53 AM

Suppose they manage to leak the password list somehow.

I'm reading their blog post further:

Quote

We felt we could do it securely. For example we never store the bank credentials (username, password, etc) in our own database, and we take care to filter it from logs, etc.

And they are aware that consumers are sensitive to this:

Quote

We offer the second option, “Challenge Deposit Verification”, as a fallback if you aren’t comfortable with entering your bank credentials.

But there was one statement I wasn't sure about:

Quote

It’s the default in the U.S. for services like Paypal so people are somewhat familiar with it.

So I started the PayPal sign-up process and see that it says:

Quote

After you create your PayPal Account, we'll ask you to link your bank account, debit card, or credit card. Then, you can start using PayPal right away.

So, I guess you learn something new every day.

D.H.

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Bitcoin.se site owner

Quote from: Stephen Gornick on October 27, 2012, 01:59:56 PM

Quote from: D.H. on October 27, 2012, 11:56:43 AM

Are you sure that you are actually giving your credentials to the payment gateway?

No, Coinbase is asking for the username, password and ... whatever else is needed for them (or an automated agent) to login to your bank account (e.g., a Login PIN for some banks).

In the part you quoted I was referring to the "popular payment gateway" in Germany that phantastisch mentioned.

Stephen Gornick

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Quote from: D.H. on October 27, 2012, 11:56:43 AM

Are you sure that you are actually giving your credentials to the payment gateway?

No, Coinbase is asking for the username, password and ... whatever else is needed for them (or an automated agent) to login to your bank account (e.g., a Login PIN for some banks).

Again, that is only if you want the "instant" verification. For the "Deposit verification" then that works the exact way that PayPal links a bank account, or Dwolla, etc.

Quote from: D.H. on October 27, 2012, 03:14:09 AM

What would your bank say about that?

They might say that was a violation of their terms of service, and if you ever lose funds because someone else logged in with your username and password you are out of luck:
- http://www.timelessfinance.com/2012/02/16/is-mint-com-safe/

justusranvier

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Quote from: D.H. on October 27, 2012, 03:14:09 AM

1. Are you really supposed to hand over your full banking credentials to a third party? What would your bank say about that?

It's actually not uncommon here. I never do it, but I've seen it before on non-scam sites.

D.H.

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Quote from: phantastisch on October 27, 2012, 10:40:24 AM

In Germany there is a pretty popular payment gateway which asks for your banking credentials , you even login in your bank account through their site and make the purchase with your data. It is easy, fast and secure. I don't have any information about the coinbase process but if its similar and secured with ssl its no more risky than your normal online banking.

Are you sure that you are actually giving your credentials to the payment gateway? Paying using your online bank is common in Sweden too but you are redirected to a page hosted by your bank and then back, the payment provider never sees your credentials.

Quote

Quick edit : Most of you guys in the forum seem to have a poor sense of judgement regarding money related things. I feel often like you protect the wrong people and discredit the good guys. and i had no good experience with coinbase.

I'm not saying that Coinbase are "bad guys". It's just that it's common sense not to give your credentials to someone else and it's also what any serious company will tell you (including your bank I'm sure).

paraipan

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Quote from: phantastisch on October 27, 2012, 10:40:24 AM

Quote from: MPOE-PR on October 27, 2012, 09:34:53 AM

Quote from: D.H. on October 27, 2012, 03:14:09 AM

1. Are you really supposed to hand over your full banking credentials to a third party? What would your bank say about that?

Asking for that seems a pretty good way to be tagged as "Internet scam". Suppose they manage to leak the password list somehow.

In Germany there is a pretty popular payment gateway which asks for your banking credentials , you even login in your bank account through their site and make the purchase with your data. It is easy, fast and secure. I don't have any information about the coinbase process but if its similar and secured with ssl its no more risky than your normal online banking.

I wouldn't touch that gateway with a ten foot pole stick. Hearing all this, I feel a little more warm and fuzzy when thinking about bitcoin Roll Eyes

phantastisch

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Quote from: MPOE-PR on October 27, 2012, 09:34:53 AM

Quote from: D.H. on October 27, 2012, 03:14:09 AM

1. Are you really supposed to hand over your full banking credentials to a third party? What would your bank say about that?

Asking for that seems a pretty good way to be tagged as "Internet scam". Suppose they manage to leak the password list somehow.

In Germany there is a pretty popular payment gateway which asks for your banking credentials , you even login in your bank account through their site and make the purchase with your data. It is easy, fast and secure. I don't have any information about the coinbase process but if its similar and secured with ssl its no more risky than your normal online banking.

Quick edit : Most of you guys in the forum seem to have a poor sense of judgement regarding money related things. I feel often like you protect the wrong people and discredit the good guys. and i had no good experience with coinbase.

kiba

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Quote from: D.H. on October 27, 2012, 03:14:09 AM

2. Don't banks in the US use two factor authentication?

Nonsense, an American bank probably don't even know what 2 factor authentication is.

MPOE-PR

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Quote from: D.H. on October 27, 2012, 03:14:09 AM

1. Are you really supposed to hand over your full banking credentials to a third party? What would your bank say about that?

Asking for that seems a pretty good way to be tagged as "Internet scam". Suppose they manage to leak the password list somehow.

BlackHeartFund

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Quote from: D.H. on October 27, 2012, 03:14:09 AM

I'm confused (by the instant method).

1. Are you really supposed to hand over your full banking credentials to a third party? What would your bank say about that?

I can't imagine why anyone would do this, or why any service would ask for it.

D.H.

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I'm confused (by the instant method).

1. Are you really supposed to hand over your full banking credentials to a third party? What would your bank say about that?

2. Don't banks in the US use two factor authentication?

kiba

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Quote from: Stephen Gornick on October 26, 2012, 04:44:18 PM

There are two methods, the "instant" method requires that you provide username and password (and PIN, if needed) to your bank account.

Guess what everyone is going to choose? The instant method.

Stephen Gornick

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Quote from: kiba on October 26, 2012, 02:04:20 PM

This is a bad idea. Coinbase is asking for your password when it want to access your bank account. Do not use!

There are two methods, the "instant" method requires that you provide username and password (and PIN, if needed) to your bank account.

The "deposit verification" method works the same way as PayPal, Dwolla etc, all do ... they send a couple test deposits and you verify by telling them how much was in each deposit.

franky1

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i have been speaking to a guy in the UK making a payment gateway. the problems found which bitinstant solve are chargebacks and anonymity.

the solution is things like moneygram.

the next gen version which bitinstant is developing and the guy in the UK is is also developing is prepayment cards. whch by paying at shops and post offices like moneygram does, reduces/avoids the chargeback risks and headaches.

where for instance bitinstant holds a prepaid card and gives out its 'refill' loading instructions, the money appears instantly they then do their behind the scenes stuff to give the user the bitcoin.

plus as part of that they give out prepaid cards to people wanting to withdraw and because its all dealt with direct with the same card issuer and direct payment. the fee's are better, money appears within minutes and avoidance of the banks oversight.

i think this way is much better then bank transfers that coin base talks about

paraipan

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Great initiative, but I think it will provide greater convenience for botnet operators, who supposedly already have the required info to confirm a bank account, with the gathered info from a victim's computer Undecided

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