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The advantage to using Bitcoin is that there are no payment processing fees. What we're able to cut with BitcoinStore is that 1-10% fee that Visa, PayPal, et al

The advantage to using Bitcoin is that there are no payment processing fees. What we're able to cut with BitcoinStore is that 1-10% fee that Visa, PayPal, et al. charge especially when dealing with products that have a high chargeback risks. So the products that sell best when using Bitcoin have high chargeback risks associated with them.

rdl 14y ago
High chargeback risk makes sense; the 1-3% fee otherwise doesn't really make a business, given how widespread credit cards are, etc., IMO. So, selling prepaid cards online would be a particular niche, maybe, or other things which are cash-equivalent.
- BitcoinStore 14y ago
  For the 1-3% fee businesses, it does actually make sense. Especially with really low-margin sites. Think of your local grocery store offering a cash discount because of credit card fees, those businesses really do exist on the margin.
srdev 14y ago
How do you fill the gap for me, the consumer, of not having chargebacks available? Chargebacks are a net plus for me.
- ewillbefull 14y ago
  This is usually filled by escrow services which I'm not sure this website has implemented. Even Silk Road has implemented this, so it's a deal-breaker for me.
  - r2DEYdly 14y ago
    Silk Road has implemented this because it is a market between sellers and buyers. BitcoinStore is a company selling stuff, having escrow would have no point at all.
    - mikeash 14y ago
      How does the fact that it's a company instead of an individual change the picture at all? In both cases, escrow serves the same purpose: to safeguard against getting ripped off.
      - rdl 14y ago
        Assuming bitcoinstore hasn't ripped off their previous N customers, I'm fairly confident being purchaser N+1, especially if my transaction isn't "special" in any way. They would have a lot to lose by ripping off customers, vs. a random seller on silkroad, so I'd feel comfortable up to a few thousand dollars. I think I've actually bought something from Memorydealers before. I'm not sure of the relationship between bitcoinstore and Memorydealers. If they're the same entity, then I'd be fine up to $100k or so -- it's a real business.
        mikeash 14y ago
        That makes escrow less likely to be useful, but the chance doesn't go to zero, so it hardly has "no point at all".
        rdl 14y ago
        Escrow has its own risk and cost. The hilarious thing with previous online currencies (E-Gold, OSGold, Pecunix, ...) was that the escrow providers themselves were often the weak link.
        mikeash 14y ago
        Well sure, but it's still useful, just not something you might automatically want. My credit card issuer effectively acts as an escrow agent, and I love that fact when ordering from companies. It has saved me more than once, too.

rdl 14y ago

High chargeback risk makes sense; the 1-3% fee otherwise doesn't really make a business, given how widespread credit cards are, etc., IMO. So, selling prepaid cards online would be a particular niche, maybe, or other things which are cash-equivalent.

BitcoinStore 14y ago
For the 1-3% fee businesses, it does actually make sense. Especially with really low-margin sites. Think of your local grocery store offering a cash discount because of credit card fees, those businesses really do exist on the margin.

srdev 14y ago

How do you fill the gap for me, the consumer, of not having chargebacks available? Chargebacks are a net plus for me.

ewillbefull 14y ago
This is usually filled by escrow services which I'm not sure this website has implemented. Even Silk Road has implemented this, so it's a deal-breaker for me.
- r2DEYdly 14y ago
  Silk Road has implemented this because it is a market between sellers and buyers. BitcoinStore is a company selling stuff, having escrow would have no point at all.
  - mikeash 14y ago
    How does the fact that it's a company instead of an individual change the picture at all? In both cases, escrow serves the same purpose: to safeguard against getting ripped off.
    - rdl 14y ago
      Assuming bitcoinstore hasn't ripped off their previous N customers, I'm fairly confident being purchaser N+1, especially if my transaction isn't "special" in any way. They would have a lot to lose by ripping off customers, vs. a random seller on silkroad, so I'd feel comfortable up to a few thousand dollars. I think I've actually bought something from Memorydealers before. I'm not sure of the relationship between bitcoinstore and Memorydealers. If they're the same entity, then I'd be fine up to $100k or so -- it's a real business.
      - mikeash 14y ago
        That makes escrow less likely to be useful, but the chance doesn't go to zero, so it hardly has "no point at all".
        rdl 14y ago
        Escrow has its own risk and cost. The hilarious thing with previous online currencies (E-Gold, OSGold, Pecunix, ...) was that the escrow providers themselves were often the weak link.
        mikeash 14y ago
        Well sure, but it's still useful, just not something you might automatically want. My credit card issuer effectively acts as an escrow agent, and I love that fact when ordering from companies. It has saved me more than once, too.