The buyers are not at risk, so you're saying they will not buy from us on principle alone? May I also ask why anyone would issue charge backs for the reason you just stated, other than out of sheer maliciousness? I am having a hard time understanding why someone would do that when we are doing everything possible to protect the customer from being defrauded, but you are saying that is exactly the reason people *should* defraud us? This makes no sense, sir.
Coming from someone who has tried working with Paypal with their specific written permission of being allowed to do so, and then having them close your account and freezing your funds for 180 days, its not worth it.
I repeat, Paypal still has over $15,000 of my funds frozen for another 90 days.
What did they do when you showed them the written permission they gave you?
Nothing.
I broke up my 10 year multi-million dollar relationship and closed my 4 other accounts with them the same day. I was processing 100k+ a day on my various retail sites thru Paypal.
The key is to prevent having chargebacks in the first place. This is why we go to such lengths to verify the authenticity of each buyer before we will accept and fill any order. As stated before, we ARE aware of the fact that PayPal can and possibly will lock down our account. By withdrawing the money and limiting the size of PayPal transactions, we are ensuring that the total loss will be at most the size of one transaction, which is more than offset by the profit gained by using PayPal in the first place. Also, as previously stated, PayPal is only a temporary solution during the time in which it takes to get going with another credit card processor.
Your not understanding something here,
forget chargebacks as you understand it.
Everything your doing is preventing someone from wanting to chargeback if they are not satisfied with the product.
Scammers
will use your system to use stolen and hacked cc'd to buy Bitcoin, and then your the one who has to bear the loss.
If you want, I can easily bypass your verification system with a stolen credit card, buy Bitcoin once a day over a few weeks, and then watch as the owners slowly call their banks to claim fraud and your cc processor drops you. I will do this for you to prove a point, no ill intentions but you will lose over $10k at least. Out of your pocket.
Would you rather me do it, or a scammer?
So why would the CEO of a multi-million dollar organization have lots of stolen credit card numbers to use?
Look, we understand the concern you are all expressing about our business model, given the number and types of failures you've seen previously. I also don't think you fully understand the level of research I do into every. single. PayPal order. I have verified statements coming from the customer verbally stating that they are buying the bitcoins, the order area code, billing address, and IP address all must geographically match, check to be sure that the phone number is not a GoogleVoice or other calling service number, match the email that the order was submitted with to the PayPal account, and in cases when I feel there is still a possibility of fraud, even do further research which I'm not willing to mention here. Even if someone DOES charge back with my new processor, I can and will prove that it's a fraudulent chargeback and win, if someone even manages to get that far in the first place.