A seller can do this on a site like Bitmit to handle the escrow. Then use USPS certified mail to track and ensure delivery. Disputes are handled by Bitmit. The seller is protected because of the proof-of-delivery offered by certified mail.
Are you proposing something beyond this like further anonymity?
Topic: Using Bitcoin to securely deliver items purchased online. Thoughts? (Read 829 times)
April 04, 2013, 02:00:13 PM
Then the delivery guy is not allowed to delivery the package.
Sorry, I should have made it clearer that this system works best with integration with a delivery company. And that company would need to have a smart phone (for the delivery guy to have) or such like to see that the QR code has been scanned and verified.
But here is a way it would work without the integration:
The buyer is expected to scan the QR code on delivery.
The UPS guy would no nothing about this, and not care
The buyer should scan when they have taken the package indoors - ASAP
If they do scan - no problem.
If they are trying to scam:
The Bitcoins are held in escrow
The seller has proof of delivery (via UPS)
The seller has proof that the delivery address was linked to the buyer's public key
The seller at least has the Bitcoins in escrow
At this point, if the issue is unresolved, the dispute is passed-over to a human to pass judgement etc.
Human has 3rd key to release Bitcoins with the agreement of any one of the parties in dispute.
Human cannot access the funds themselves.
They can view the UPS proof of delivery etc.
Plus they can call the buyer on their mobile/email and discuss etc. If no reply or daft excuse - it's a scam, release the Bitcoins to the seller
If UPS are at fault the seller can start a dispute with them and claim from UPS - then the Bitcoins are released back to the buyer.
I think this would work very well and is easy to implement. Surely it's going to deter any potential scammers big time?
Sorry, I should have made it clearer that this system works best with integration with a delivery company. And that company would need to have a smart phone (for the delivery guy to have) or such like to see that the QR code has been scanned and verified.
But here is a way it would work without the integration:
The buyer is expected to scan the QR code on delivery.
The UPS guy would no nothing about this, and not care
The buyer should scan when they have taken the package indoors - ASAP
If they do scan - no problem.
If they are trying to scam:
The Bitcoins are held in escrow
The seller has proof of delivery (via UPS)
The seller has proof that the delivery address was linked to the buyer's public key
The seller at least has the Bitcoins in escrow
At this point, if the issue is unresolved, the dispute is passed-over to a human to pass judgement etc.
Human has 3rd key to release Bitcoins with the agreement of any one of the parties in dispute.
Human cannot access the funds themselves.
They can view the UPS proof of delivery etc.
Plus they can call the buyer on their mobile/email and discuss etc. If no reply or daft excuse - it's a scam, release the Bitcoins to the seller
If UPS are at fault the seller can start a dispute with them and claim from UPS - then the Bitcoins are released back to the buyer.
I think this would work very well and is easy to implement. Surely it's going to deter any potential scammers big time?
April 04, 2013, 01:35:58 PM
Quote
The package is delivered by UPS with a QR code which I scan
What if you don't scan the code?
April 04, 2013, 01:24:50 PM
I guess that someone has thought of this before - but I just want to check:
You order a PC on line and pay with Bitcoin.
The Bitcoin goes into a virtual escrow account
The package is delivered by UPS with a QR code which I scan
This tells the delivery guy it's me; and releases the funds from the escrow account to the merchant.
No arguments
There could be a DNS lookup online, so my public key is linked to my delivery address, and only I can change that.
This totally get's around the "I need to pay with PayPal or Credit Card, because that way I'm protected if the guy does not deliver". And for the seller it gets around a number of issues: chargebacks, false delivery addresses, buyers claiming they did not get the goods when they did, delivery companies claiming they delivered to the right person/address, when they did not etc.
You can set the escrow account so that if the delivery is not made within say 3 days, then the buyer get's their money back. And if after that the delivery was attempted, the delivery guy would get a msg when the buyer scans the QR code not to deliver. Or only to deliver if the buyer first pays on the spot by Bitcoin.
You could also nominate another Bitcoin address for delivery purposes, either because you wanted it delivered to a different address (say your work); or you wanted a receptionist to take the package.
All this would remove the last stumbling block for buyers to use Bitcoin, as they would be covered for non-delivery.
Any thoughts? Thanks!
You order a PC on line and pay with Bitcoin.
The Bitcoin goes into a virtual escrow account
The package is delivered by UPS with a QR code which I scan
This tells the delivery guy it's me; and releases the funds from the escrow account to the merchant.
No arguments
There could be a DNS lookup online, so my public key is linked to my delivery address, and only I can change that.
This totally get's around the "I need to pay with PayPal or Credit Card, because that way I'm protected if the guy does not deliver". And for the seller it gets around a number of issues: chargebacks, false delivery addresses, buyers claiming they did not get the goods when they did, delivery companies claiming they delivered to the right person/address, when they did not etc.
You can set the escrow account so that if the delivery is not made within say 3 days, then the buyer get's their money back. And if after that the delivery was attempted, the delivery guy would get a msg when the buyer scans the QR code not to deliver. Or only to deliver if the buyer first pays on the spot by Bitcoin.
You could also nominate another Bitcoin address for delivery purposes, either because you wanted it delivered to a different address (say your work); or you wanted a receptionist to take the package.
All this would remove the last stumbling block for buyers to use Bitcoin, as they would be covered for non-delivery.
Any thoughts? Thanks!
Jump to: