You are viewing a single comment's thread from:
RE: Buy SteemPower - STEEM - or SteemDollars directly from your credit/debit-card in 30 seconds!
Credit cards could put in their contracts that there are no chargebacks or refunds on purchases of cryptocurrency. Of course, there will be lawsuits because the IRS considers cryptocurrencies to be property, hence akin to buying a TV set and credit cards would have to honor their buyer's remorse programs.
Nevertheless, cryptocurrency is really something new and should be treated in a novel way. In reality, cryptocurrency is a competitor and credit cards might want to inhibit it and probably charge 5% to 10% fee for the transaction.
Visa and mastercard (and all other card types, for that matter) require that all transactions be reversible in cases of fraud (and most of your chargebacks are going to be fraudulent use ). You're not allowed to accept visa and MC and just say "123 no chargebacks"
Even if you could, it wouldn't be desirable. You'd essentially be helping theives steal from innocent victims. We don't want a situation where people are getting introduced to steem by a fraudulent charge on their bank statement that they can't get off.
You make good points, but people might be happy to do cryptocurrency transactions on an at- risk basis. We already have that for the most part, de facto. If you send bitcoin to an address there is no guarantee of anything on the other end and no refunds for fraud. I have to admit it would be nice if credit cards took the hit when a crook did a cryptocurrency rip-off. However, fraud exists. According to pymnts.com, U.S. issuers reportedly lost $3.89 billion last year due to counterfeiting, which accounted for 23.9 percent of global fraud losses.
If there is fraud of any kind, including cryptocurrency purchases, why change the current policy? Fraud is fraud.
To cut to the chase, ultimately it is an underwriting problem. Who is going to foot the bill for cryptocurrency involved fraud?
The "current policy" is that any transaction is reversible if the CH claims fraud. This is card issuer policy, enforced by credit card merchant banks.
And yeah, because of that, its an underwriting problem.
If youre asking why cryptocurrency is special, its because cryptocurrency is a vulnerable target in ways that most goods are not. thats why there arent many places to buy btc this way.
That is to say, lets say tomorrow morning you have a fully functioning website where you can accept CC payments and send steem in return for them.
Regadless of the KYC you implement or the anti-fraud measures you take to prevent unauthorized transactions, (and there are a variety of them available), you will lose probably about 250K-500K in the first month to fraud.
This isnt some guy speculating. I know the people that will hit you for the most personally.
Crypto currencies like steem are far more vulnerable to fraud than physical gold (which has to be sent somewhere)
And yet I'm able to buy physical gold with a credit card. There ARE ways around this.
@transhuman If the case is chargebacks from fraudsters - it could be facilitate so that people buy SBD held in escrow until the chargeback period is over.
How long is the "chargeback period"? That sounds like a long time to wait. There is already a delay in cryptcurrency transactions as the blockchain gets a consensus; though Steem with it's 3 -minute blocks is pretty speedy.
its 90 or 120 days in most countries for most card issuers, but the CB percentage declines sharply after 30 days
@transhuman there is usually a 30 day chargeback which can be prolonged if there is a dispute.
I am sure we can find a brilliant solution for it that don´t prevent people from powering up - but can prevent people from cashing out/powering down for the first 90 days for example.
First time buyers of course.
throwing the suggestion-ball :)
@fyrstikken: Have you seen Cardiff's presentation at Steem Fest? See 01:50 to 09:19 of the following video:
Cardiff is saying that we could form a Steemit Bank or Investment Fund or Hedge Fund etc. A bank is roughly the same thing as a credit card (they underwrite them).
I worked in the financial industry and I know that you can do anything with finance. It's just a matter of using imagination to come up with a solution. Why not set up a "reverse" credit card which pays YOU interest for your purchases. At first it would be a secured credit card; secured by dollars and/or other stable currencies.
Consumers might not be so quick to spend if they were getting a good rate of interest on their money. The rate depending on how much they have in. Furthermore, merchants might not take their money out if they are making 8% interest. That might be more than their actual profit margin.
The hard part would be convincing people that it is not a scam.
I actually thought of something interesting.
So the guy buys X amount of steem. When he does so, instead of sending it to him, the seller creates a new account with the steem in it.
The buyer gets to choose steem or SP (or SBD i guess), and immediately gets the voting key electronically, so he can use the steem to power up and vote if he wants to. If not, its safe in the new account.
The signing and owner key get mailed on paper to the CH billing address.
This isnt going to stop actual cardholders who decide to freeroll the system by buying the steem then charging it back, but it will make fraud from stolen cards (which is where most of your fraud breakage is going to come from ) far more difficult to do profitably.
The cadriff idea is terrible. No serious business enterprise would ever go for it. The only bright spot was I got a chuckle when he meant to say "nest egg" (the invested money) but instead said "goose egg" (slang for zero. freudian slip i guess.)
Also, he doesnt understand what "hard asset" means. crypto currency is a soft asset. It doesnt have intrinsic value.
Also also it blows my mind that we're coming off like a 95% devaluation trend and hes ranting about how risky it is to keep your money in a savings account. Like, seriously?
There's a difference between being positive/optimistic and being oblivious.
This is the kind of thing that only poor people believe.