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What would stop someone from setting up a bunch of accounts and selling a bunch of non-existent stuff? Is there escrow of some sort?
by rorrr 14y ago
What would stop someone from setting up a bunch of accounts and selling a bunch of non-existent stuff? Is there escrow of some sort?
- kiba 14y agoIf you read the FAQ, they did mention an escrow system.
- dreamdu5t 14y agoFrom the FAQ: Because Bitcoin transactions are widely anonymous there is a need for trustbuilding measures like our escrow system. Thereby Bitcoins are only transfered to the vendor if you have set the order as received or have given a positive rating. Thereby potential fraudsters have no chance of success. More details: http://www.bitmit.net/en/info/13/bitmit-bitcoin-treuhand-dienst http://www.bitmit.net/en/info/13/bitmit-bitcoin-treuhand-die...
- mparlane 14y agoSadly it means the customer is always right. So if the customer says "nope I didn't get it", then they get their money and the product. Similar to how paypal works really.
- kiba 14y agoJust hold the money when the evidence is not clear?
- rprasad 14y agoPaypal provides a mechanism for the merchant to show proof of delivery. Generally, if you use UPS or Fedex, all you have to do is forward them delivery confirmation or the tracking number, and they free up your funds. For intangible goods, you simply need to show proof that the item purchased is intangible. Paypal isn't perfect, but if it really screwed over merchants the way you suggest they do, they would have gone out of business years ago.
- tzs 14y ago> Paypal isn't perfect, but if it really screwed over merchants the way you suggest they do, they would have gone out of business years ago. I don't think you can draw that inference unless there is a good non-Paypal option that doesn't screw over merchants. Getting a traditional merchant account and accepting credit cards online isn't such an alternative--that screws over merchants on charge backs and with the occasional massive and apparently arbitrary increase in reserve requirements.
- analog 14y agoAs a merchant it feels like you're being screwed over, but the fact is you'll sell more and at higher values than if you don't accept paypal or credit cards. There are plenty of studies showing that customers spend more if they pay by credit card. In fact just having a credit card logo visible will increase spending, even on cash puchases.
- DavidSJ 14y agoThe escrow service can donate the money to charity. Since the seller never gets it, there's no disincentive for fraud in the first place.
- DavidSJ 14y agoIncentive, I mean.
- rorrr 14y agoSo I order the most expensive item and pretend I never received it.
- Myrth 14y agoI guess need a delivery trust component. Vendor should send only with tracked/signature required service and provide receipt as a proof of shipment.
- chrischen 14y agoWhat if they send a box of dirt, and call it a PS3?
- finnw 14y agoYou don't even need to shop online for that - it can happen in brick-and-mortar stores: http://consumerist.com/2007/10/best-buy-sells-you-a-box-of-bathroom-tiles-instead-of-hard-drive-wont-issue-refund.html http://consumerist.com/2007/10/best-buy-sells-you-a-box-of-b...