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> I don't know of ANY legitimate business that "cannot take credit card purchases because of possible chargebacks". But a random person trying to sell somethin
by Anderkent 13y ago
> I don't know of ANY legitimate business that "cannot take credit card purchases because of possible chargebacks".
But a random person trying to sell something on their own cannot take paypal because of possible chargebacks. And we're all paying a premium on the prices because businesses have to cover chargebacks in their pricing.
It's a huge problem for example in trading online game items; the current solution is to have reputation threads, where you have your previous trading partners vouch that you did not chargeback your paypal transaction / did provide the item as promised. Taking paypal from an unknown party is a huge risk.
- JohnTHaller 13y agoSo, instead of having the possible risk to the seller that a buyer could do a chargeback (which the seller can fight on PayPal with proof of delivery, though I'm not claiming how well this works), bitcoin shifts all that risk to the buyer (with no recourse at all). It's as risky as sending a money order through the mail. How does this make bitcoin better than PayPal for the overall transaction (for BOTH buyer and seller)?
- Anderkent 13y agoIt gives them flexibility. (Additionally, multisig transactions cancel all the risk as long as they can find a 3rd party trusted to make the decision) The seller can still go first, if he's prepared to shoulder the risk. Then the buyer can send the money once they receive the item. This is the same as using paypal. If neither party is willing to go first, they have to either use a trusted middleman (seller gives item to middleman, buyer sends money, seller confirms to middleman, middleman releases item), or multisig transactions (the same, except the middleman can't run away with the money/item)