Bitcoin Forum

Hello, i have arranged a transaction on localbitcoins.com but the guy wants to use a direct bank transaction, do you think this sounds a little dodgy and is there anything i could do to reduce the risk of getting scammed  ???

Thanks

Escrow; meet in person; make them send first...

he's saying he only does online transactions but i have read his profile feedback and its all good.

In the U.S., for example, reversals of ACH bank transactions can occur long after the transaction was completed and settled. (in the case where the owner of the sender's account claims the transfers were not authorized, such as if it were a hacked bank account.)

If there is a fairly long history of transactions with multiple trading partners (whose profiles don't look to be sock accounts) and all reports are good, then you probably are going to be fine doing that trade for a bank transfer.  But there's always the risk you won't, so be careful -- trade a small amount to begin with maybe, and never trade more than you are willing to lose.

I am a trusted member here as far as I can tell (do a ton of business of all sorts) and would love to help you avoid a potential problem. There is nothing wrong with depositing it if he will send hthe btc first and you can check online that it confirms before deposit.

However, I would be glad to help you in a similar manner. Just PM me if you have any questions or need assistance with things even beyond this. I love to help new users learn.

OP : I hear you !

I'm new to Bitcoin too and I feel a bit uneasy about the "non reversable payments" part of the deal.

I know it offers some benefits but the drawback is that this kinda system relies almost exclusively on trust...it's a sad thing but trust is hard to come by in our times.

I will look into the escrow service but, again, the fees implied in those service..added to the fees incurred in the first place to buy the BTC adds up at a rather fast pace.

Best of luck 

When you say escrow, you are referring to "LocalBitcoin's Transaction"  (which previously they used to refer to as being "escrow")
 - https://localbitcoins.com/faq#howto_transaction

But that just lets you accept bitcoins without having to worry about getting the transaction confirmed.  In this instance, the worry isn't that the bitcoin might get double-spent but that the bank transaction will.


A "LocalBitcoins transaction" helps protect you in the instance where you are handing over cash to a seller who has no trust history and might try to take advantage of a weakness of Bitcoin that sometimes makes it possible to cheat someone who considers "0/unconfirmed" transactions as "paid".  

If it is the first time you are trading with someone who is new or has low rep and you will be handing over a chunk of cash, you might find the 1% fee to be well worth the peace of mind.  

It is too bad there is no way to pay a 1% (or similar low fee) to ensure that bank transactions similarly can't be later reversed.

A direct bank transaction? You meet him at his bank and he has them cut a cashier's check or execute a wire transfer right in front of you?