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There were two big problems with the banks: 1. A number of wine investment companies took card payments but never bought the wine. So the bank was liable for t

There were two big problems with the banks: 1. A number of wine investment companies took card payments but never bought the wine. So the bank was liable for the money lost in those situations - and as a result that put a blanket ban on all fine wine companies. We were able to talk Barclays around on this. 2. Storage of wine would be handled by a third party warehouse. If they screwed anything up (e.g. broke the case, had a fire, and insurance refused to pay out), there was a chance that buyers could get the money back through their bank if they paid by credit card. and for us when we did accept this: 3. Getting the fees to work with our model - we wanted to offer a fixed fee for trading cases, but all banks / payment services wanted to take a percentage, including for debit card payments (hence my point about doing more work to get the model to work payment charges). Obviously fraud is a major concern, and is something that we do a lot of work on as we scale up (e.g. at the moment we're manually processing all orders, taking ID for anyone buying more than £10k total etc). It's not something that we're naive too and we're definitely not going to launch a completed automated system without adequate processes in place.

steve8918 14y ago
2) If you're talking about chargebacks, it would be YOU that the buyers would be charging back the money from, not the warehouse, since you were the merchant that accepted the payment. And am I right in that you are basically saying that the buyers take on all risk of storage at the warehouse facility? If so, you should probably outline that as well, including what the insurance policy of the warehouse, covers, etc.
- jmaskell 14y ago
  I should have been more accurate - the bank would be liable if the customer charged back and couldn't reclaim the money from Vinetrade (e.g. we'd ceased trading). There isn't huge risk for the buyers - all wine in the warehouses is insured at full replacement value. It's more of a hypothetical "what if" or worst case scenario.
Cherian_Abraham 14y ago
Have you looked at 192Business from a fraud/authentication perspective?
conorgdaly 14y ago
From the Vinetrade site:"Secure and trustworthy. Your transactions are encrypted." Step 1: Start posting username/pwd to your server over HTTPS and start delivering signup & login forms over HTTPS. At the moment, both of these happen in plain text so I don't see how you can say you take security seriously if you can't even get the low hanging fruit.

steve8918 14y ago

2) If you're talking about chargebacks, it would be YOU that the buyers would be charging back the money from, not the warehouse, since you were the merchant that accepted the payment. And am I right in that you are basically saying that the buyers take on all risk of storage at the warehouse facility? If so, you should probably outline that as well, including what the insurance policy of the warehouse, covers, etc.

jmaskell 14y ago
I should have been more accurate - the bank would be liable if the customer charged back and couldn't reclaim the money from Vinetrade (e.g. we'd ceased trading). There isn't huge risk for the buyers - all wine in the warehouses is insured at full replacement value. It's more of a hypothetical "what if" or worst case scenario.

Cherian_Abraham 14y ago

Have you looked at 192Business from a fraud/authentication perspective?

conorgdaly 14y ago

From the Vinetrade site:"Secure and trustworthy. Your transactions are encrypted." Step 1: Start posting username/pwd to your server over HTTPS and start delivering signup & login forms over HTTPS. At the moment, both of these happen in plain text so I don't see how you can say you take security seriously if you can't even get the low hanging fruit.