Bitcoin Forum

Just currious,

If someone withdraw money from an ATM with a credit card. Can there be a charge back ?

If so, who end up losing the cash... visa or the back ?

If there is no charge back possible, then maybe we have way to actually pay for bitcoin directy with a credit card.... you would have to pay interest since it's a cash advance but still would be more user friendly than the current way of doing thing.

It can't be chargebacked unless you claim fraud.
And it's a much longer process than some scumbag frat boy lying to PayPal and clicking a few buttons.

The credit union who issued the Visa/Mastercard will invoke a police investigation and the scammer will be held criminally liable if he's found out to be lying
(i.e. the card wasn't stolen, gave it to a friend who cashed it out, CCTV camera proves he was there withdrawing it etc.)

Even then, you can't reverse cash. Once you send it in the mail, it's obviously gone for good. In fraud cases the credit union absorbs the risk.

the advantage of a credit card is to pay over the internet in my view-
I don't see how withdrawing cash helps as one then needs to send funds by Western Union or something right?

I was not thinking of drawing cash and sending it.

I was thinking more along the line of using the card over the internet to make a cash withdraw at the site selling the coin.... if that's possible.

The process would look something like this.

- Go to a site, enter your Visa/MC number
- The site makes a cash advance on your card
- With the cash in hand (and no refund possible), they transfer bitcoin to your adresse

As a customer you would have to pay interest because it's charged as a cash advance but it's much more user friendly than having to register an account at an exchange.

I'm not sure if it's possible to do a cash advance remotly, but if it is then I think that for the average joe, it would be much more convenient than MTGox or Tradehill.

There's a global service for that already, Western Union.
Few if any bitcoin exchanges accept it though because it's a lot physical work for the owner.

You have to withdraw the cash in person so that's really not an option if you have large volume.

Why does it have to be an advance and not just a regular credit card transaction?

Because unknown people on the internet using CC/Paypal are generally unreliable.

Exchanges that had PayPal transactions for BTC got burned due to high fraud rates and chargebacks.

There is even a warning on the exchange forum not to use credit card/paypal to BTC conversions.
http://forum.bitcoin.org/index.php?topic=14632.0

They are too easy to cancel so that you get BTC but the guy you paid to, gets nothing.

http://forum.bitcoin.org/index.php?topic=14632.0