Need some expert opinion here guys :)

chennan

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Quote from: Jet Cash on February 01, 2016, 02:46:22 AM

Quote

I could see a massive use for a site like this, if you were to implement an easy system of using a prepaid card. This could essentially cut out the need for Bitcoin ATM's, because someone could go to a store that sells these prepaid cards, pay in cash, and then use that card to buy bitcoins using your website.

The ideal situation would be for the store to provide the Bitcoin. This cuts out the need and costs of the prepaid card. As Bitcoin becomes more popular, stores will start to see this source of profit. This means your project may have a limited life as Bitcoin replaces prepaid cards.

I don't really think you will be seeing Bitcoin "stores" regardless though... At least for a very very long time. I mean hell, look at pawn shops that buy gold. Since it's stable and requires a hefty price tag, they can buy and resell for a small profit to remain somewhat afloat... but, with bitcoin I don't think you would be seeing any pawn shops or any other type of shops for that matter just sell Bitcoin. You might see more adoption of Bitcoin ATM's, which would take out the middle man like you said above... but not shops specifically buying and selling Bitcoins.

elizabethqueen

sr. member

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Quote from: ali97hakim on January 30, 2016, 11:12:45 PM

Hello, bitcointalk!

I have wanted to own a bitcoin business for a while now. There have been services that come and gone in the past but most no one really offers a simple, easy, reliable way for anyone to buy bitcoin using a credit/debit card. I want to develop a site that would allow novices and experts to easily purchase bitcoin using prepaid card or credit card, without having to go through a ton of processes to get their coin & being bombarded with massive fees. In a relatively quick time.

I am an experienced web developer with a fair amount of knowledge in bitcoin.

My questions:

1). How should I set this up legally so that I am abiding by the laws & paying the right taxes? (I am looking for a bitcoin lawyer, if I can find one)

2). What type of verification could I go through that my visitors know that this is a legitimate service and not some scam site?

3). For security purposes I am thinking of handling all orders manually from my cold storage vault and delivering within 24 hours, thoughts?

4). I obviously don't know everything at the moment, so what major problems should I look out for when it comes to this?

5). What are your overall thoughts & concerns about this idea?

Here are some photos of what I have developed so far

i dont think you need bitcoin lawyer,just open your services,and your bitcoin storge will help you to handle it,just make sure you ask them to help you about your security purpose.

Jet Cash

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Activity: 2814

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https://JetCash.com

Quote

I could see a massive use for a site like this, if you were to implement an easy system of using a prepaid card. This could essentially cut out the need for Bitcoin ATM's, because someone could go to a store that sells these prepaid cards, pay in cash, and then use that card to buy bitcoins using your website.

The ideal situation would be for the store to provide the Bitcoin. This cuts out the need and costs of the prepaid card. As Bitcoin becomes more popular, stores will start to see this source of profit. This means your project may have a limited life as Bitcoin replaces prepaid cards.

crazyivan

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DMD Diamond Making Money 4+ years! Join us!

Quote from: Erkallys on January 31, 2016, 07:06:10 AM

Quote from: crazyivan on January 31, 2016, 02:32:12 AM

Credit Card charge back is a major issue. This is why all major sites like Payza or Solid Trust Pay allow buying BTC only with debit cards or wire. I suggest you pay attention to that.

Back in time, when I bought for the only time I ever did a fraction of a Bitcoin, I've been able to deposit money on Payza via a credit card and directly buy on Indacoin.

I tried this exactly the same way and got rejected. It can be done if you use debit card but not credit card.

equator

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Activity: 1190

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Quote from: chennan on February 01, 2016, 12:31:53 AM

Quote from: ali97hakim on January 31, 2016, 11:21:51 AM

Quote from: Glucose on January 31, 2016, 07:35:54 AM

Quote from: ali97hakim on January 30, 2016, 11:12:45 PM

3). For security purposes I am thinking of handling all orders manually from my cold storage vault and delivering within 24 hours, thoughts?

Seems good to me. The exchange I'm using delivers bitcoins twice a day. To me it never has been a problem. Be sure to create a FAQ on your future website with the withdrawal timing question.

Quote from: ali97hakim on January 30, 2016, 11:12:45 PM

4). I obviously don't know everything at the moment, so what major problems should I look out for when it comes to this?

5). What are your overall thoughts & concerns about this idea?

This kind of service could be really of good use for the community. I guess there is a lot of demand for this.

I guess your main problem will be to face chargeback (even on this forum a lot of people are "selling" credit card numbers), etc... It's quite a scammy situation for your project.

Second one is to be sure the security of your website is good enough. No body wants to give credit card informations and you will probably soon or later face hack attempts / DDOS attempts.

Be sure to find a law specialist before launching your project. You have to be sure of the tax your service will have to pay & think about a SIG campaign when you will launch your service. It will only work if enough people use it.

This seems this is going to be quite an expensive startup, I am thinking of offering cash deposit payments & wire transfers. Because they are secure & and I can send bitcoin orders out quicker too because I would just have to verify the deposit in my bank account.

I could see a massive use for a site like this, if you were to implement an easy system of using a prepaid card. This could essentially cut out the need for Bitcoin ATM's, because someone could go to a store that sells these prepaid cards, pay in cash, and then use that card to buy bitcoins using your website.

I'm sure there is something that will keep you from doing this, but in my mind right now it seems like this would be VERY good for anyone who wants to purchase bitcoins using cash.

Edit: plus it will allow a sort of anonymity aspect of buying since you aren't directing your banks debit card to the website that could link to personal information. As long as you can find a way around laws, I think you would be very successful if everything goes well.

Using Prepaid card is also a good option for buying bitcoins through your site, because in cash transaction and wire transfers you have check with the law and Taxation problems because when you get payment through other countrys then forex charges will also be their and you have to check the foreign money law , if not that you can get problem in foreign money exchange law.

chennan

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Activity: 1316

Merit: 1004

Quote from: ali97hakim on January 31, 2016, 11:21:51 AM

Quote from: Glucose on January 31, 2016, 07:35:54 AM

Quote from: ali97hakim on January 30, 2016, 11:12:45 PM

3). For security purposes I am thinking of handling all orders manually from my cold storage vault and delivering within 24 hours, thoughts?

Seems good to me. The exchange I'm using delivers bitcoins twice a day. To me it never has been a problem. Be sure to create a FAQ on your future website with the withdrawal timing question.

Quote from: ali97hakim on January 30, 2016, 11:12:45 PM

4). I obviously don't know everything at the moment, so what major problems should I look out for when it comes to this?

5). What are your overall thoughts & concerns about this idea?

This kind of service could be really of good use for the community. I guess there is a lot of demand for this.

I guess your main problem will be to face chargeback (even on this forum a lot of people are "selling" credit card numbers), etc... It's quite a scammy situation for your project.

Second one is to be sure the security of your website is good enough. No body wants to give credit card informations and you will probably soon or later face hack attempts / DDOS attempts.

Be sure to find a law specialist before launching your project. You have to be sure of the tax your service will have to pay & think about a SIG campaign when you will launch your service. It will only work if enough people use it.

This seems this is going to be quite an expensive startup, I am thinking of offering cash deposit payments & wire transfers. Because they are secure & and I can send bitcoin orders out quicker too because I would just have to verify the deposit in my bank account.

I could see a massive use for a site like this, if you were to implement an easy system of using a prepaid card. This could essentially cut out the need for Bitcoin ATM's, because someone could go to a store that sells these prepaid cards, pay in cash, and then use that card to buy bitcoins using your website.

I'm sure there is something that will keep you from doing this, but in my mind right now it seems like this would be VERY good for anyone who wants to purchase bitcoins using cash.

Edit: plus it will allow a sort of anonymity aspect of buying since you aren't directing your banks debit card to the website that could link to personal information. As long as you can find a way around laws, I think you would be very successful if everything goes well.

franky1

legendary

Activity: 4410

Merit: 4788

if your own bank account is not a business account. and your making multiple deposits of under $3000k a day, but total combined gets to $10,000 a day, then expect some issues.

nothing to do with bitcoin. but some banks dont just have single payment thresholds. but daily/monthly hidden limits too.
its not really mentioned in their literature for consumer accounts. but its a behind the scene thing that triggers their AML flags if they notice alot of money is moving in and out of your account every day

EG if you walk into your bank and deposit 3 cashier checks into your account. and once cleared you wire transfer the funds out..
basically just using the account as a funds transfer service rather than storage or to spend on lifestyle stuff.
some banks may pick up on it. not instantly it may be a week, month or year.

so just be warned that moving money in a non-business account could cause headaches after a while. so ask your bank what the best account to have as a self employed person,

some people have said credit unions are less of a headache as they do not have as much corporate whips and chains dictating how customers should use their money. so you may get an easier time talking to a credit union

ali97hakim

newbie

Activity: 43

Merit: 0

Quote from: franky1 on January 31, 2016, 07:46:03 PM

Quote from: ali97hakim on January 31, 2016, 07:33:11 PM

Quote from: lolxxxx on January 31, 2016, 12:45:55 PM

hey Ali Bro,

I have a question , If (me) a buyer came to your site ,looking to buy some bitcoins obviously how can he feel secure while buying bitcoins from your site ? Convince me ?

This whole thread is for brainstorming. But, my question exactly, what would convince you?

money service business(MSB) registration numbers
domain name not hidden behind WHOIS guards
proper business registration
no PO BOX addresses
no using an agent as a registration address

Ok awesome, will look into that. But to start off I think I will offer bitcoin purchases by cash deposit at banks/credit unions.

Just brainstorming here, but I am thinking I should do it like this. Bitcoin purchases of $3,000 & below using cash deposit require no ID verification. Just the proof of bank deposit w/ receipt. Anything more requires 2-forms of ID verification, Delivery time would still be the same.

franky1

legendary

Activity: 4410

Merit: 4788

Quote from: ali97hakim on January 31, 2016, 07:33:11 PM

Quote from: lolxxxx on January 31, 2016, 12:45:55 PM

hey Ali Bro,

I have a question , If (me) a buyer came to your site ,looking to buy some bitcoins obviously how can he feel secure while buying bitcoins from your site ? Convince me ?

This whole thread is for brainstorming. But, my question exactly, what would convince you?

money service business(MSB) registration numbers
domain name not hidden behind WHOIS guards
proper business registration
no PO BOX addresses
no using an agent as a registration address

ali97hakim

newbie

Activity: 43

Merit: 0

Quote from: lolxxxx on January 31, 2016, 12:45:55 PM

hey Ali Bro,

I have a question , If (me) a buyer came to your site ,looking to buy some bitcoins obviously how can he feel secure while buying bitcoins from your site ? Convince me ?

This whole thread is for brainstorming. But, my question exactly, what would convince you?

OROBTC

legendary

Activity: 2940

Merit: 1865

Quote from: MyBTT on January 31, 2016, 02:47:15 AM

I really have no idea about how to make a Bitcoin business. But I know that there aren't any Bitcoin lawyers.

A quick Google search "Bitcoin, lawyers" yielded up at least four law firms on the first page of results.

thebtclawyer.com/

bitcoinlaw.net

www.attorneybitcoin.com/

www.mushkinlaw.com/bitcoin-law1.html

* * *

Someone, somewhere, at some time is going to find a way to sell BTC without all of the AML/KYC regulations. And they will make a fortune, a gold mine.

countryfree

legendary

Activity: 3066

Merit: 1047

Your country may be your worst enemy

Quote from: ali97hakim on January 30, 2016, 11:12:45 PM

Hello, bitcointalk!

I have wanted to own a bitcoin business for a while now. There have been services that come and gone in the past but most no one really offers a simple, easy, reliable way for anyone to buy bitcoin using a credit/debit card.

You're not the first one to have this idea, so ask yourself why isn't anyone (that including folks with large resources) offering that kind of service?
What you must consider is that you cannot do it all by yourself. You will need to sign a partnership with a credit card processing service. If it was easy, somebody would be doing it, already.

liquidiser

member

Activity: 77

Merit: 10

Check if operating your business would classify you as a money transmitter as in American law. If your business would be classified as a money transmitter then it would need a license to operate in each American state it has customers in. if it did business with New York residents it would also need a Bit License. I think getting money transmitter licenses for all American states can cost over a million dollars per year.

NorrisK

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Activity: 1946

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Quote from: ali97hakim on January 31, 2016, 12:43:54 PM

Quote from: NorrisK on January 31, 2016, 12:03:45 PM

You will very likely go bankrupt because of credit card fraud. If you don't put in the necessary id verification steps you are asking for people to use stolen cards on your site.

Next, 24 hour deliveries are not of this era. Everything is going on continuously and becoming more and more instantaneously. Why would I use your service if there are at least 2 services available in my country that allow buying bitcoin with my debit card and have them delivered as soon as the next block hits?

good points, I can see why there aren't many sites that offer this. I still want to move with this idea & maybe offer cash deposit/wire transfer payments. Like bitquick.co but much faster.

Speed and easy of use are most important for the customers. If you can create something like that, while protecting your own bank from fraudsters, you might be able to get a lot of traffic.

Good luck with your efforts! Bitcoin can use businesses like this.

lolxxxx

legendary

Activity: 2198

Merit: 1032

hey Ali Bro,

I have a question , If (me) a buyer came to your site ,looking to buy some bitcoins obviously how can he feel secure while buying bitcoins from your site ? Convince me ?

ali97hakim

newbie

Activity: 43

Merit: 0

Quote from: NorrisK on January 31, 2016, 12:03:45 PM

You will very likely go bankrupt because of credit card fraud. If you don't put in the necessary id verification steps you are asking for people to use stolen cards on your site.

Next, 24 hour deliveries are not of this era. Everything is going on continuously and becoming more and more instantaneously. Why would I use your service if there are at least 2 services available in my country that allow buying bitcoin with my debit card and have them delivered as soon as the next block hits?

good points, I can see why there aren't many sites that offer this. I still want to move with this idea & maybe offer cash deposit/wire transfer payments. Like bitquick.co but much faster.

NorrisK

legendary

Activity: 1946

Merit: 1007

You will very likely go bankrupt because of credit card fraud. If you don't put in the necessary id verification steps you are asking for people to use stolen cards on your site.

Next, 24 hour deliveries are not of this era. Everything is going on continuously and becoming more and more instantaneously. Why would I use your service if there are at least 2 services available in my country that allow buying bitcoin with my debit card and have them delivered as soon as the next block hits?

ali97hakim

newbie

Activity: 43

Merit: 0

Quote from: Glucose on January 31, 2016, 07:35:54 AM

Quote from: ali97hakim on January 30, 2016, 11:12:45 PM

3). For security purposes I am thinking of handling all orders manually from my cold storage vault and delivering within 24 hours, thoughts?

Seems good to me. The exchange I'm using delivers bitcoins twice a day. To me it never has been a problem. Be sure to create a FAQ on your future website with the withdrawal timing question.

Quote from: ali97hakim on January 30, 2016, 11:12:45 PM

4). I obviously don't know everything at the moment, so what major problems should I look out for when it comes to this?

5). What are your overall thoughts & concerns about this idea?

This kind of service could be really of good use for the community. I guess there is a lot of demand for this.

I guess your main problem will be to face chargeback (even on this forum a lot of people are "selling" credit card numbers), etc... It's quite a scammy situation for your project.

Second one is to be sure the security of your website is good enough. No body wants to give credit card informations and you will probably soon or later face hack attempts / DDOS attempts.

Be sure to find a law specialist before launching your project. You have to be sure of the tax your service will have to pay & think about a SIG campaign when you will launch your service. It will only work if enough people use it.

This seems this is going to be quite an expensive startup, I am thinking of offering cash deposit payments & wire transfers. Because they are secure & and I can send bitcoin orders out quicker too because I would just have to verify the deposit in my bank account.

Glucose

hero member

Activity: 861

Merit: 1001

Quote from: ali97hakim on January 30, 2016, 11:12:45 PM

3). For security purposes I am thinking of handling all orders manually from my cold storage vault and delivering within 24 hours, thoughts?

Seems good to me. The exchange I'm using delivers bitcoins twice a day. To me it never has been a problem. Be sure to create a FAQ on your future website with the withdrawal timing question.

Quote from: ali97hakim on January 30, 2016, 11:12:45 PM

4). I obviously don't know everything at the moment, so what major problems should I look out for when it comes to this?

5). What are your overall thoughts & concerns about this idea?

This kind of service could be really of good use for the community. I guess there is a lot of demand for this.

I guess your main problem will be to face chargeback (even on this forum a lot of people are "selling" credit card numbers), etc... It's quite a scammy situation for your project.

Second one is to be sure the security of your website is good enough. No body wants to give credit card informations and you will probably soon or later face hack attempts / DDOS attempts.

Be sure to find a law specialist before launching your project. You have to be sure of the tax your service will have to pay & think about a SIG campaign when you will launch your service. It will only work if enough people use it.

Erkallys

legendary

Activity: 1120

Merit: 1004

Quote from: crazyivan on January 31, 2016, 02:32:12 AM

Credit Card charge back is a major issue. This is why all major sites like Payza or Solid Trust Pay allow buying BTC only with debit cards or wire. I suggest you pay attention to that.

Back in time, when I bought for the only time I ever did a fraction of a Bitcoin, I've been able to deposit money on Payza via a credit card and directly buy on Indacoin.

Topic: Need some expert opinion here guys :) (Read 1508 times)