I assume you can't buy these online. They are in person right? The merchant isn't the gas company it is the store selling the credit and if they swipe the card then any fraud is on VISA. VISA will contact the gas company who will repot $100 was added to your meter, they will contact the store and verify a $100 prepaid card was sold. Then they will reverse the chargeback and if they think you are committing fraud.... well then it just gets fun.
VISA will destroy your credit report and that will likely cause other lenders to cut credit lines, close accounts, and ramp up your interest rates. Selling Bitcoins with credit cards is easy. Selling them online to an anonymous person isn't so easy.
VISA will destroy your credit report and that will likely cause other lenders to cut credit lines, close accounts, and ramp up your interest rates. Selling Bitcoins with credit cards is easy. Selling them online to an anonymous person isn't so easy.
Does this mean we could sell mtgoxCodes or casascius coins or private keys in shops, because we can proove to visa we actually sold the code to the customer?
Sure. If your chargeback rate exceeds industry standard you can expect your merchant account to be closed though. Honestly I think if you have a physical shop you might as well just accept cash. I mean getting the network of stores is the hard part. If you got that demanding cash isn't much of a limitation. Just look at GreenDot (MoneyPaks). GreenDot could allow their cards to be purchased with credit cards. Of course that means their cost would rise by the credit card discount rate, less merchants would sell them (high chargebacks hurts the merchant's account) and they would need to factor in the inevitable rise in fraud plus investigation costs into their product.
They accept only cash and sell nearly a billion dollars a year worth of code.
Do the power company's just take a loss at fraud or is there something else included with the purchase using a debit/credit card. 