Bitcoin Forum

Economy => Marketplace => Topic started by: mndrix on December 31, 2010, 10:32:24 PM



Title: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on December 31, 2010, 10:32:24 PM
I just opened a new service, CoinPal (http://coinpal.ndrix.com), for buying bitcoins with PayPal.  The site is currently in beta testing, so purchases must be between 10 and 20 BTC.  Once my current stock of bitcoins is exhausted, the beta closes.  The site will tell you when that's happened.  There's a YouTube video walking through a complete order (http://www.youtube.com/watch?v=YmPg4V-YE0k).

To reduce the likelihood of fraud, you must have a verified PayPal account and provide a phone number during PayPal checkout.  Trade volumes are limited to 20 BTC per payer per week (for now).  Both US and International PayPal accounts are accepted.

I've combed the forum for suggestions on avoiding PayPal fraud and implemented as much as I could.  If you spot any fraud vulnerabilities in the current design, I'd love to hear about them.  Fraud can't be eliminated, but hopefully I can reduce the risk enough to keep the service available.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: grondilu on December 31, 2010, 10:53:26 PM

Well, it's good you presented it as a beta.  Because I've failed passing through the first step twice.  With two different browsers :  Arora and uzbl.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on December 31, 2010, 11:02:09 PM
Well, it's good you presented it as a beta.  Because I've failed passing through the first step twice.  With two different browsers :  Arora and uzbl.

In what way did it fail?  I didn't see anything unusual in the server logs.  Did you get the "Please come back later" message?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on December 31, 2010, 11:12:55 PM
Well, it's good you presented it as a beta.  Because I've failed passing through the first step twice.  With two different browsers :  Arora and uzbl.

Thanks for the report.  I was able to reproduce the problem in Arora.  It's fixed now.  Let me know if it persists for you.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on December 31, 2010, 11:38:25 PM
If you are using verified accounts you might want to also use paypal mass pay. Its a bit cheaper than standard paypal transactions as well as less prone to rorting. This is because its not reliant on credit cards. It uses the money already in your account.

The problem is the credit card companies.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: grondilu on January 01, 2011, 12:14:12 AM
Thanks for the report.  I was able to reproduce the problem in Arora.  It's fixed now.  Let me know if it persists for you.

Nope.  I tries to load during half a sec, and then it stops without changing anything in the page.

I'm using Arora 0.10.2 with libQT 4.6.3 on Debian Sid.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on January 01, 2011, 01:42:39 AM
One thing you might run into is paypal sending you a threatening letter about trademark violation in that you are a payment processor and you have "Pal" in your name. Especially since you are using paypal to process your transactions - they could say you might give the impression Paypal condones the use of their trademarks by third parties.
There is a reason there is not a proliferation of "Pal" sites out there accepting payment. These companies are pretty vicious in protecting their name recognition. They have to take action to protect their shareholders.

Might be easier to change your name now then later on when you are established.

Im not saying I support the existence of these things .







Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: goldcoin on January 01, 2011, 07:02:41 PM
nice service
bad the fees are ...


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 01, 2011, 08:00:45 PM
Nope.  I tries to load during half a sec, and then it stops without changing anything in the page.

I'm using Arora 0.10.2 with libQT 4.6.3 on Debian Sid.

It works for me with Arora 0.10.1 and QT 4.6.0 on OS X 10.6.  I don't have access to a Debian machine with X, so I can't test it further than that.  Maybe try with Firefox or Chrome, which should be available on Linux.

I've had a few more successful orders come through, so it appears not to be a problem generally.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 03, 2011, 03:39:47 PM
There were a couple questions about the exchange rate, so I've updated the site's Prices (http://coinpal.ndrix.com/page/prices) page to make it clearer that I use the lowest ask price on Mt. Gox as the exchange rate.

All paid transactions this weekend were successful, so I've added more bitcoins to extend the beta.  I also applied for PayPal's micropayments rate which should reduce PayPal fees for these transactions.  Once that's done, I'll update the site and post here.

If you are using verified accounts you might want to also use paypal mass pay. Its a bit cheaper than standard paypal transactions as well as less prone to rorting.

I plan to accept mass pay in the future.  With a maximum fee of $1 and many fewer chargebacks, I think it's a great way to buy bitcoins.  Thanks for the suggestion.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nanaimogold on January 03, 2011, 06:04:12 PM
The word "international" is not a synonym for non-USA. International means cross-border.

A payment can be international, but an account cannot be. For example, when a US American buys a bitcoin from a Chilean, the transaction is international but that does not make the US American's account international.

US Americans are the only people who make this mistake, and frankly, it's only one of the myriad ways they make themselves look stupid. So, in the interest of protecting your image, I suggest you correct the terminology on your site.

More important than that, I don't expect you will be able to succeed in this endeavor. Unfortunately soft money spoils hard money and the internet reaches out to millions of immoral people who relish a chance to steal. Paypal account verification will not protect you from chargeback liars and phished accounts. Observe what happened to Mt Gox in November.

You might be new to currency exchange and unfamiliar with the risks. Aside form being robbed by liars or having your funds frozen by Paypal for month or years, other dangers await your being noticed.

I suggest you look into the cases of the US based digital currency exchangers who have been defrauded out of their business, robbed by the owners of the US government, accused and convicted on trumped up charges, in prison, in hiding, or in exile.

The banksters stole the US government and now direct the many federal police agencies. They strenuously resist privately issued money because it spoils their carefully crafted illusion of monopoly. They use the tacit agreement created by their target's use of their property, the fiat money, as legal basis for directing the pwnd police against their rivals, no matter how small they might be. Paypal is not a digital currency, it is a payment processor carrying the property of the issuing governments. Paypal is therefore under the thumb of those who defrauded the citizens out of their democracies.

Currently the best ways to get into Bitcoin are to either trade product or service in the market, or to trade fiat for Liberty Reserve to take to Mt Gox. Forget using soft fiat, such as credit cards or Paypal. Use only non-reversible vectors for transmission of fiat.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 03, 2011, 06:22:03 PM
The word "international" is not a synonym for non-USA. International means cross-border.

Thanks for the suggestion.  I'll change the wording when I promote the next bug fixes

Quote
More important than that, I don't expect you will be able to succeed in this endeavor. Unfortunately soft money spoils hard money and the internet reaches out to millions of immoral people who relish a chance to steal. Paypal account verification will not protect you from chargeback liars and phished accounts. Observe what happened to Mt Gox in November.

You might be new to currency exchange and unfamiliar with the risks. Aside form being robbed by liars or having your funds frozen by Paypal for month or years, other dangers await your being noticed.

I appreciate your concern and willingness to warn me of the danger.  I'm aware of the risks I'm taking on.  I'm probably just arrogant, but believe I can succeed where others have failed :-)  Time will tell.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Stephen Gornick on January 03, 2011, 06:46:58 PM
I appreciate your concern and willingness to warn me of the danger.  I'm aware of the risks I'm taking on.  I'm probably just arrogant, but believe I can succeed where others have failed :-)  Time will tell.

mndrix, kudos to you, man!

Discouragement and failure are two of the surest stepping stones to success. - Dale Carnegie


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nanaimogold on January 03, 2011, 06:47:53 PM
I would like to see you succeed but years of bad experiences have made me very skeptical of any currency trades using soft money.

Your Paypal account is tied to a bank account and your gov issued ID, your real name, you home addresss and all your other contact vectors are on file for the pwnd police forces to access at any time.

You cash out a gaming winner and you have commited a felony in USA. But I expect you will get broken by the fraudsters before then.

BTW, the owners of the US gov are known to organize fraud and dos attacks and other crimes when that is easier than lying in court. You are facing a very dirty enemy.  This is why I don't think you know the risks.

Make us a list of all the US based digital currency exchangers.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: The Madhatter on January 04, 2011, 01:30:55 AM
I have to agree with nanaimogold. Accepting PayPal for Bitcoin is a very bad idea.

It is just a matter of time before you are scammed into oblivion.

I wish I had better news for you, but I've seen it happen way too many times. :(

The Madhatter


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 04, 2011, 03:06:41 AM
I fixed a bug when submitting the initial order form which caused some browsers to download a gzipped file instead of displaying the proper HTML page with pricing details.  Thanks to hacim for help testing a few relevant fixes.  If any of you were prevented from ordering because of this bug, give it a try again.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Ricochet on January 04, 2011, 05:15:47 AM
Just putting a quick testimonial out there - worked fine for the transaction I made.  Hoping it doesn't get hit by scammers, would be a shame to lose such an easy-to-use exchange. 


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 04, 2011, 01:41:39 PM
The beta is closed for a couple days.  A steady stream of orders yesterday bought all my coins just in time for me to leave town.  When I get back later this week, I'll restock and try to keep the service up as permanently as possible.  The site is still up for browsing, you just won't be able to place orders.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: srf21c on January 04, 2011, 11:02:29 PM
It's nice to see someone step up and run an experiment like this.  Regardless of whether or not it ultimately succeeds, I believe it will provide valuable information.   Others will be able to learn from the inevitable bureaucratic and fraudster attacks.   

It will also be very interesting to see what if any legal precedents are set with regards to paypal-to-bitcoin businesses meeting the legal definition of a money handling service.   Will bitcoin be classified as "money" or "currency" or whatever the feds need to call it so they now have an excuse neuter the threat with regulation?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: jescro on January 05, 2011, 05:12:26 AM
The beta is closed for a couple days.  A steady stream of orders yesterday bought all my coins just in time for me to leave town.  When I get back later this week, I'll restock and try to keep the service up as permanently as possible.  The site is still up for browsing, you just won't be able to place orders.

Thanks mndrix, let me know when you're back and if you get some new inventory, I'd love to try it out.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 06, 2011, 04:41:01 PM
The service is open for business again.  PayPal approved me for their micropayments fee structure which amounts to a 26% decrease in PayPal fees on a 20 BTC order.

I made a few adjustments to fraud detection.  If things continue working well for the next week or so, I'll increase the maximum order limit.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nanotube on January 06, 2011, 05:03:01 PM
The service is open for business again.  PayPal approved me for their micropayments fee structure which amounts to a 26% decrease in PayPal fees on a 20 BTC order.
cool! :)

Quote
I made a few adjustments to fraud detection.  If things continue working well for the next week or so, I'll increase the maximum order limit.
best be very careful with that.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Bruce Wagner on January 06, 2011, 05:52:55 PM
Bravo..... on having the courage to keep trying.    :)

Wishing you Success.

( I just now added you to http://bitcoincard.com )


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: loungedaddy on January 08, 2011, 05:05:32 AM
Hey, mndrix
I want to thank you for making my first USD to BTC transaction a breeze  :D

As a total newb, and as someone who gets a little put-off by the charts and graphs and puzzling exchange-rate numbers that are sometimes thrown in people's faces upon visiting some other sites ... I totally appreciate what you're doing.



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 08, 2011, 02:53:33 PM
I just fixed a bug with email addresses using capital letters.  If you got an error message about email addresses not matching when placing an order, it should work now.

This has turned out to be much more popular than I anticipated.  I'm restocking coins as fast as I can, but it looks like I'll run out again this weekend.  Could be mid-week before I have a substantial inventory again.  Eventually I'll implement dynamic pricing to keep supply and demand in balance, until then it could be on again, off again.  Thanks for all the feedback.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mahkul on January 08, 2011, 03:36:52 PM
Just to confirm that I successfully purchased 20BTC on CoinPal.

Good luck with that.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: bitcool on January 08, 2011, 05:06:53 PM
works great. thanks.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 10, 2011, 03:23:43 PM
Coins sold out last night.  I'm working on a deal that should get me coins to reopen later today.  I'll post here when I'm open again.

I also fixed a bug in my volume limit calculations which caused some people to be told they had exceeded their weekly volume limit when they actually hadn't.  That bug is fixed now.

Thanks for the feedback and patience during the beta.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 10, 2011, 05:01:22 PM
Open again with about 3x the inventory.  Thanks to morpheus for the pleasant MTGUSD trade.  I should have about 10x the inventory by the end of the week.  Hopefully that can meet demand for a little while.

A few people have asked me about the volume limits.  I'll raise them when I can.  Selling 200 BTC spread across 10 customers gives 10 people a taste of Bitcoin which is probably better for the community.  It also reduces fraud likelihood and gives me more data points for my fraud prediction model.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Stephen Gornick on January 11, 2011, 05:24:59 AM
Just a heads-up, in case you weren't already aware ... IRS 6050W:

Quote
If you meet the stated thresholds [at least 200 trxs/year and at least $20K gross sales], you will be required to verify your identity by adding a SSN/TIN/EIN to your existing account.

Quote
If you are currently using a Personal or Premier account, you will be required to upgrade to a Business account.

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W (https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W)

i.e., PayPal will be reporting the gross revenues you received on a 1099-K sent to you and to the IRS.

http://federalregister.gov/a/2010-20200 (http://federalregister.gov/a/2010-20200)
http://www.irs.gov/pub/irs-news/reg-139255-08.pdf (http://www.irs.gov/pub/irs-news/reg-139255-08.pdf)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: 8668 on January 12, 2011, 03:21:03 PM
First CoinPal transaction (and first forum post) a resounding success. Thanks mndrix


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Bruce Wagner on January 13, 2011, 06:21:44 PM
This is why we need a Bitcoin-for-Cash dealer on every corner of every village, every town, every city, in every country.   Email me to list yourself as a Bitcoin-for-Cash contact in your own town.... on http://bitcoinbuy.com     Every one of us should be a volunteer bitcoin-for-cash person wherever you live.....  Contact me to get listed.  My email is:  email@bitcoinme.com


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mahkul on January 13, 2011, 09:50:09 PM
This is why we need a Bitcoin-for-Cash dealer on every corner of every village, every town, every city, in every country.   Email me to list yourself as a Bitcoin-for-Cash contact in your own town.... on http://bitcoinbuy.com     Every one of us should be a volunteer bitcoin-for-cash person wherever you live.....  Contact me to get listed.  My email is:  email@bitcoinme.com


The problem with that is some people have very little bitcoins.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Babylon on January 14, 2011, 03:57:44 AM
This is why we need a Bitcoin-for-Cash dealer on every corner of every village, every town, every city, in every country.   Email me to list yourself as a Bitcoin-for-Cash contact in your own town.... on http://bitcoinbuy.com     Every one of us should be a volunteer bitcoin-for-cash person wherever you live.....  Contact me to get listed.  My email is:  email@bitcoinme.com


The problem with that is some people have very little bitcoins.

That's why we need it, so people can buy more of them.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: FatherMcGruder on January 14, 2011, 02:07:09 PM
This is why we need a Bitcoin-for-Cash dealer on every corner of every village, every town, every city, in every country.   Email me to list yourself as a Bitcoin-for-Cash contact in your own town.... on http://bitcoinbuy.com     Every one of us should be a volunteer bitcoin-for-cash person wherever you live.....  Contact me to get listed.  My email is:  email@bitcoinme.com

I suppose I'd be up for that here in Manchester, CT, but all I'd be doing is reselling from Bitcoin Gateway. Why wouldn't potential buyers just go to my Bitcoin Gateway in the first place?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on January 14, 2011, 03:15:58 PM
Using bitcoin means your bitcoin dealer can be on the other side of the world. It brings people together from everywhere and breaks down barriers.



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 14, 2011, 06:19:27 PM
I've increased CoinPal (http://coinpal.ndrix.com) purchase limits to 40 BTC per week.  Past customers who hit the old limit can immediately place orders up to the new limit.

Depending on typical order size and future BTC exchange rates, I may change my PayPal account back to the standard fee structure.  The standard fee structure gives lower fees for payments over $11.90 (http://www.wolframalpha.com/input/?i=.05%2B.05x+%3D+.30+%2B+.029x).  I'll post here if/when that happens.

I anticipate current order limits staying in place until the end of February or March.  That gives the initial transactions enough time to mature past the PayPal dispute deadline (45 days) and to approach the credit card chargeback deadline (~90 days).  Which gives me better data for my fraud prediction model. I'd rather go slowly and keep the service open than rush to a hasty demise.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nanotube on January 14, 2011, 06:34:39 PM
I've increased CoinPal (http://coinpal.ndrix.com) purchase limits to 40 BTC per week.  Past customers who hit the old limit can immediately place orders up to the new limit.

Depending on typical order size and future BTC exchange rates, I may change my PayPal account back to the standard fee structure.  The standard fee structure gives lower fees for payments over $11.90 (http://www.wolframalpha.com/input/?i=.05%2B.05x+%3D+.30+%2B+.029x).  I'll post here if/when that happens.

I anticipate current order limits staying in place until the end of February or March.  That gives the initial transactions enough time to mature past the PayPal dispute deadline (45 days) and to approach the credit card chargeback deadline (~90 days).  Which gives me better data for my fraud prediction model. I'd rather go slowly and keep the service open than rush to a hasty demise.

i wouldn't hurry too much to raise the limits. you'll get plenty of volume due to high number of customers, while keeping fraud risk from any individual account low.

you have a great service there, i'd hate to see it go bust due to one or two large frauds.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Sultan on January 14, 2011, 10:33:37 PM
Set the maximum purchase to $11.90 to make it profitable on the micropayment fees.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: eMansipater on January 14, 2011, 10:36:54 PM
This is why we need a Bitcoin-for-Cash dealer on every corner of every village, every town, every city, in every country.   Email me to list yourself as a Bitcoin-for-Cash contact in your own town.... on http://bitcoinbuy.com     Every one of us should be a volunteer bitcoin-for-cash person wherever you live.....  Contact me to get listed.  My email is:  email@bitcoinme.com


Bruce--Thanks so much for making bitcoinme.com.  That's a site I can actually send people to and expect them to be attracted to bitcoin without needing a degree in math, as opposed to the comparatively noob-unfriendly bitcoin.org!  I've been wanting to do a big pitch for it to my social network contacts, but I've been waiting for the images to start working again so it looks proper professional.  Any idea when that might be?  Is it something I could send you some donations towards?  I'd love to have that be a reliable place I can just send people when they ask me what bitcoin is.

Sincerely,
eMansipater


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 14, 2011, 11:18:23 PM
As some have requested, I've added a rudimentary API (http://coinpal.ndrix.com/page/api) (I hesitate to even call it that).  It lets you pre-populate a CoinPal order form with a bitcoin address and an optional amount.  It also lets you show a recipient name instead of the full Bitcoin receiving address.

For example: donate 10 BTC to the EFF (http://coinpal.ndrix.com/?addr=1MCwBbhNGp5hRm5rC1Aims2YFRe2SXPYKt&to=Electronic+Frontier+Foundation&amt=10).  Of course, there's no authentication on who the Bitcoin address really belongs to, so you can also donate to The Human Fund (http://coinpal.ndrix.com/?to=The%20Human%20Fund&addr=18ExgbBUDPHyuUepNFC95e6u6JdV2gnDcV) on my behalf


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: em3rgentOrdr on January 15, 2011, 12:03:39 AM
I'm worried that "CoinPal" will get sued by "PayPal" for trademark violation.  I've heard so many nasty stories about companies like "Facebook" suing any social networking site with "Face" or "Book" in the url.  And I remember the Liberty Dollar was ultimately taken down under the pretense that it violated the US trademark on "Dollar"...


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 15, 2011, 02:40:57 AM
I'm worried that "CoinPal" will get sued by "PayPal" for trademark violation.

I haven't been able to find specific information about PayPal having a trademark on *Pal, but enough people have expressed concern, that I'm going to change the name.  Any suggestions?

I'm leaning toward Copal (http://en.wikipedia.org/wiki/Copal), which portmanteau-ishly suggests what the service does, is an existing word so it can't be trademarked and goes well with the name Cowalla (the planned name for a future Dwolla->BTC service).


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on January 15, 2011, 03:18:50 AM
There used to be a service called Gunpal.

I dont think they ever got sued by paypal so we might be wrong about this.

I suppose you could always approach paypal and ask about it. If they dont respond or send a form letter you will have the out that you told them but they ignored it.



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nanotube on January 15, 2011, 04:43:17 AM
I'm worried that "CoinPal" will get sued by "PayPal" for trademark violation.

I haven't been able to find specific information about PayPal having a trademark on *Pal, but enough people have expressed concern, that I'm going to change the name.  Any suggestions?

I'm leaning toward Copal (http://en.wikipedia.org/wiki/Copal), which portmanteau-ishly suggests what the service does, is an existing word so it can't be trademarked and goes well with the name Cowalla (the planned name for a future Dwolla->BTC service).

i might suggest to stay away from 'pal' completely. how about something nice and generic, like 'bitcoinsource' :)
then you can use the same site for paypal, dwolla, $anything else.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on January 15, 2011, 05:06:35 AM
I'm worried that "CoinPal" will get sued by "PayPal" for trademark violation.

I haven't been able to find specific information about PayPal having a trademark on *Pal, but enough people have expressed concern, that I'm going to change the name.  Any suggestions?

I'm leaning toward Copal (http://en.wikipedia.org/wiki/Copal), which portmanteau-ishly suggests what the service does, is an existing word so it can't be trademarked and goes well with the name Cowalla (the planned name for a future Dwolla->BTC service).

i might suggest to stay away from 'pal' completely. how about something nice and generic, like 'bitcoinsource' :)
then you can use the same site for paypal, dwolla, $anything else.

+1

I like bitcoinmeter but someone already owns it.... ;)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: em3rgentOrdr on January 15, 2011, 01:02:16 PM
I would stick with CoinPal. It's a great name! If and when you get a nasty letter from PayPal's lawyers, that's when you need to consider changing the name. Not before.

That doesn't seem wise.  Planning ahead is one of the great abilities us humans have.  We should use it to anticipate potential problems so we can avoid them.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: S3052 on January 15, 2011, 01:03:49 PM
I would stick with CoinPal. It's a great name! If and when you get a nasty letter from PayPal's lawyers, that's when you need to consider changing the name. Not before.

That doesn't seem wise.  Planning ahead is one of the great abilities us humans have.  We should use it to anticipate potential problems so we can avoid them.
Agree with you. You may be forced to pay damage fees bo PayPal if they enforce it.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Babylon on January 15, 2011, 01:12:12 PM
I would stick with CoinPal. It's a great name! If and when you get a nasty letter from PayPal's lawyers, that's when you need to consider changing the name. Not before.

Pay Pal will sue for profits, which have likely already been spent.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mahkul on January 15, 2011, 04:04:41 PM
CoinBuddy? CoinChum? :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Ricochet on January 16, 2011, 07:07:26 PM
But changing the name is such a minor thing that it might as well be done to be on the safe side.  It will have little impact on the operation and traffic of the site, whereas in your example if Mt Gox had chosen not to accept PayPal, that would have been a severe change in the operation of the site.  Here, it's just a name.  Perspective is key.

As for the name itself, Nanotube's suggestion of Bitcoin Source sounds good to me.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: srf21c on January 18, 2011, 03:59:57 PM
The bigger and more established a business and/or trade name is, the more painful it usually is to change. 

If the above premise is true, and the coinpal name is more or less guaranteed to draw legal fire from Paypal down the road, it would stand to reason that the earlier a name change "course correction" is made, the better. 


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 18, 2011, 07:02:30 PM
Thank you all for your thoughts on the CoinPal name.  As suggested above, I've contacted PayPal for clarification on their trademark policy.  Until I get official notice, I'll retain the current name in the spirit of avoiding premature optimization.

A few more people have contacted me about increasing volume limits for specific buyers.  I'm testing a feature which could increase limits for buyers who provide sufficient proof that they are the rightful owners of the associated PayPal accounts.  I agree with nanotube and am in no hurry to increase the limits if it has any risk of shutting down the service because of fraud.  Aside from my one beta tester on this identity verification feature, no one else is likely to get a higher limit until at least March.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: gohan on January 19, 2011, 02:45:55 AM
I know it's too early but here's a feature request: Sending micropayments to PayPal users using BitCoin.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 19, 2011, 03:25:33 AM
I know it's too early but here's a feature request: Sending micropayments to PayPal users using BitCoin.

Good idea.  Something similar is on the drawing board.  It'd work roughly like this:

  • user populates a form with a PayPal address and preferred currency
  • CoinPal responds with a new Bitcoin address
  • Any Bitcoins sent to that address are automatically converted into a PayPal payment to the associated PayPal address

The PayPal payment would use Mass Pay so the fee would be 2% but never exceed $1.  That's the lowest PayPal fee I know of for automated transactions and it should work decently for microtransactions.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: gohan on January 19, 2011, 04:54:37 PM
the fee would be 2% but never exceed $1.

Yes, this is an additional benefit for all of us who pay very high fees when sending. I can't wait to use it. :D

Though, I, for instance, would use it to send money to arbitrary addresses, therefore, instead of generating a new address for each transaction, being able to deposit directly to CoinPal and taking it from there would suit me most. However, the way you plan to implement it obviously addresses the majority use case, so I'll just hope it will be implemented in the far future.

EDIT: I just realized that a payment option via a service like MyBitcoin is almost the same in effect.  :)

Thanks for this great service.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 24, 2011, 02:38:24 PM
The scammers have arrived.  CoinPal will be closed for the next few days while I analyze a batch of fraudulent orders from this weekend and make any necessary changes to the site.  Any financial losses were well within expected ranges, so this is actually good news for CoinPal.  It's hard to build fraud-prevention measures without experiencing some fraud.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Sultan on January 24, 2011, 03:23:49 PM
The scammers have arrived.  CoinPal will be closed for the next few days while I analyze a batch of fraudulent orders from this weekend and make any necessary changes to the site.  Any financial losses were well within expected ranges, so this is actually good news for CoinPal.  It's hard to build fraud-prevention measures without experiencing some fraud.

I am saddened to hear that. My condolences, but I agree with your conclusion and positive attitude.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: caveden on January 25, 2011, 10:45:14 AM
Could you, please, publish the addresses where the bitcoins from the fraudulent transactions were sent?

+1
Not that it will change much right now, but it would be good to develop such practice.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on January 25, 2011, 12:32:59 PM
I honestly hope you defeat these douchebags






Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 25, 2011, 03:07:40 PM
Could you, please, publish the addresses where the bitcoins from the fraudulent transactions were sent?

For those who are curious, here's a sample of addresses to which bitcoins were sent based on fraudulent PayPal payments.  It'd be a fun project to see where the "dirty" coins go.  Presumably, they're laundered rapidly:

  • 1FH274XRPhbiiSnT6hJXaqHnJwvWtsgWDU
  • 16WRE4GjnwEv35ZAvJ87MKQV86GJxyDips
  • 19ppPM6Vu4DNPbqtvDT5fUvKB1MwmQu7aB
  • 1CqRu4kwsTB7MgT9t25qt8eSDnRDVxpZL3

I won't publish the full list.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mahkul on January 25, 2011, 03:14:56 PM
You got that many scammers? I expected just a few. I wish we could at least find one or two of them and teach them a lesson.

I don't think tracing the coins will be relevant, they could have just sold them on mtgox or somewhere to someone who didn't have a clue where they originated from. :/


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: m0mchil on January 26, 2011, 08:45:39 AM
At least anyone saying bitcoin is not anonymous enough can try to prove it.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mahkul on January 26, 2011, 10:50:39 AM
At least anyone saying bitcoin is not anonymous enough can try to prove it.
i think "pseudo anonymity" describes it pretty well.
anyone who did her homework can access bitcoin network in a way that protects her true IP and identity
+ paypal fraud included most probably stolen id information + account into.

all that we can find out is barely patterns how the dirty bitcoins moved until they they were laundered.
assume IP addresses are found -> unusable if i2p or tor were used or a zombie botnet pc was used as exit point
assume we trace bitcoins through a chain of addresses -> they end up in a laundry / pool and become untraceable



I don't think all of those scammers would be smart enough to go through Tor or i2p - perhaps they just cracked someone's password for their email and used their paypal account (which, knowing some people's level of security awareness, had identical password to the email account password).

On a side note, it's just pathetic that they are ruining the good service for the sake of 40 BTC. Gordon Gekko would laugh hard. :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: FreeMoney on January 26, 2011, 11:01:28 AM
At least anyone saying bitcoin is not anonymous enough can try to prove it.
i think "pseudo anonymity" describes it pretty well.
anyone who did her homework can access bitcoin network in a way that protects her true IP and identity
+ paypal fraud included most probably stolen id information + account into.

all that we can find out is barely patterns how the dirty bitcoins moved until they they were laundered.
assume IP addresses are found -> unusable if i2p or tor were used or a zombie botnet pc was used as exit point
assume we trace bitcoins through a chain of addresses -> they end up in a laundry / pool and become untraceable



I don't think all of those scammers would be smart enough to go through Tor or i2p - perhaps they just cracked someone's password for their email and used their paypal account (which, knowing some people's level of security awareness, had identical password to the email account password).

On a side note, it's just pathetic that they are ruining the good service for the sake of 40 BTC. Gordon Gekko would laugh hard. :)

It is pathetic, but they didn't ruin the service, as mndrix said he was expecting and is going to learn from it. There will be a better service in the end.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mahkul on January 26, 2011, 11:25:41 AM
It is pathetic, but they didn't ruin the service, as mndrix said he was expecting and is going to learn from it. There will be a better service in the end.

Yeah, what I meant was they're causing some (hopefully minor) hassle.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: 8668 on January 26, 2011, 03:44:12 PM
At least anyone saying bitcoin is not anonymous enough can try to prove it.
i think "pseudo anonymity" describes it pretty well.
anyone who did her homework can access bitcoin network in a way that protects her true IP and identity
+ paypal fraud included most probably stolen id information + account into.

all that we can find out is barely patterns how the dirty bitcoins moved until they they were laundered.
assume IP addresses are found -> unusable if i2p or tor were used or a zombie botnet pc was used as exit point
assume we trace bitcoins through a chain of addresses -> they end up in a laundry / pool and become untraceable



I don't think all of those scammers would be smart enough to go through Tor or i2p - perhaps they just cracked someone's password for their email and used their paypal account (which, knowing some people's level of security awareness, had identical password to the email account password).

On a side note, it's just pathetic that they are ruining the good service for the sake of 40 BTC. Gordon Gekko would laugh hard. :)

You think someone willing to commit credit card fraud/identity theft to buy Bitcoins isn't familiar with Tor or i2p?? That's being a bit naive imo


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mahkul on January 26, 2011, 03:57:35 PM
You think someone willing to commit credit card fraud/identity theft to buy Bitcoins isn't familiar with Tor or i2p?? That's being a bit naive imo

You're probably right there... I would just love to be able to catch at least one of these f*ckers.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 26, 2011, 10:45:53 PM
The service is open again for those few beta testers with privately increased purchase limits.  Our current inventory is reserved for them, so anyone else will see the out of stock page when placing an order.

PayPal finished switching my account back to the standard fee structure.  That reduces PayPal fees by 10% on a 40 BTC order.  The savings are higher for larger orders.

I'm still working on fraud-related changes to the site as time permits.  It may still be a few days until the site's open to the public again.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Garrett Burgwardt on January 27, 2011, 02:38:41 PM
Could I get in on this as well? I've only got a couple bucks so it'd be a small order but I'd like to build some trust so I can use the service later  ;D (when I finally acquire some monies)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Stephen Gornick on January 28, 2011, 08:32:37 PM
Was this your scammer?
Quote
i've got a premier, verified, account with a WaMu checking and a Mastercard attached. i want to clean it out.

i've got access to the email address and the paypal. i'm tempted to find somewhere to buy bitcoins with pp, then send the bitcoins to another account, one more account, then to liberty reserve (through, say, MtGox).

how traceable is this?
  http://www.zoklet.net/bbs/showthread.php?p=2441858

Scary stuff.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 28, 2011, 09:32:36 PM
Was this your scammer?

Fascinating.  I don't know if he was involved, but it seems this sort of thing is far more common than I had imagined.  Thanks for sharing.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 28, 2011, 10:16:17 PM
CoinPal is open to everyone again for the next hour.  If you've been waiting to buy some Bitcoins with PayPal now's your chance.  I'm about half-way done with anti-fraud changes I want to make to the site and thought it was a good point to open up again for a little while.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 28, 2011, 11:00:37 PM
CoinPal is open to everyone again for the next hour.

The test is going well so far.  I'll leave it open until the coins run out.  That'll probably happen later tonight or tomorrow morning, depending on order sizes.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: dacoinminster on January 31, 2011, 05:54:26 PM
I love this service. So much easier than any other way to get BTC.

Suggestion: Have three-tiers of purchasing

Lowest level: Can only purchase a very small number of BTC, using your current structure.

Middle level: Can purchase more once you send them a letter containing a password to their confirmed paypal address. For the cost of a stamp, you can prove that a paypal account is not stolen. This could even be automated using a mailing service like l-mail.com (http://l-mail.com)

Highest level: Can purchase large quantities of bitcoins, which are "shipped" to the confirmed address using a password inside a USPS padded envelope (with additional padding to make it is just large enough to qualify for a tracking number). Shipping with a tracking number qualifies the shipper for seller protection in case of fraud. People sell gold all the time using Paypal, so I would imagine that selling BTC should be possible too. Note that you have to get signature verification on shipments worth more than $250.

The biggest risk is that fraud will occur on the highest-level tier, and PayPal will investigate and decide that you are breaking their user agreement somehow and shut you down.

You might be able to get additional protection by doing more of your communication through paypal (for instance, if the buyer gives you their bitcoin address through paypal, you could then prove that you transferred the bitcoins to the address they provided). However, that would rely on the support folks at PayPal not being lazy and incompetent, which may not be a good bet based on some things I have read.

Since you are building a reputation for honesty, you could probably also offer to buy bitcoins using paypal, making it easier for people to sell them as well.

I was saving this idea for possibly using it myself someday, but I decided to give it away to whoever wants it. Hopefully this information won't push up the value of bitcoins too quickly, since I haven't finished buying the ones I want yet. If anyone benefits from this idea, feel free (but not obligated) to tip me here: 19hMEAaRMbEhfSkeU4GT8mgSuyR4t4M6TH


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 31, 2011, 06:23:50 PM
I love this service. So much easier than any other way to get BTC.

Thanks.

Quote
Suggestion: Have three-tiers of purchasing

Thanks for the suggestions.  I have one beta tester testing an address verification system similar to what you suggest for the middle level.  If testing goes well, this will be available more widely.  I'll definitely consider implementing something like the highest level.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on January 31, 2011, 06:27:49 PM
CoinPal is open to everyone again for the next hour.

The test is going well so far.  I'll leave it open until the coins run out.  That'll probably happen later tonight or tomorrow morning, depending on order sizes.

Brief update: this weekend's tests went well.  They turned up a couple bugs in my new code which I've fixed.  I'll keep working on anti-fraud measures so I can open to the public again.  Thanks for your patience.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: doublec on January 31, 2011, 11:26:33 PM
Middle level: Can purchase more once you send them a letter containing a password to their confirmed paypal address. For the cost of a stamp, you can prove that a paypal account is not stolen. This could even be automated using a mailing service like l-mail.com (http://l-mail.com)
Are you suggesting people would email their paypal password to the coinpal maintainer? I doubt you'd find anyone willing to do this.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Garrett Burgwardt on January 31, 2011, 11:28:47 PM
The suggestion was for the seller to mail a password to the buyer who would then communicate it to the seller to receive the bitcoins. That was fairly clear, don't see how you missed that.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Garrett Burgwardt on February 01, 2011, 12:30:51 AM
The reason for mailing something is to get seller protection from paypal, as well as ensure that the paypal account hasn't been hijacked.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nelisky on February 01, 2011, 12:31:54 AM
The suggestion was for the seller to mail a password to the buyer who would then communicate it to the seller to receive the bitcoins. That was fairly clear, don't see how you missed that.

seller is already using email to send a piece of information to the buyer to continue to the transaction.
(not a password but a link, that the buyer must visit to compete the buy process)

the problem with attackers is that they control both paypal and email, making the anti fraud protection difficult.
any other checks you can think of? (can not automate phone calls, phone calls would rise the costs for exchange up even higher than they're now)
let us assume that the attacker has compromised the buyer identity in all possible ways (control of pc, email, paypal - all usernames & passwords). that really sucks.

Quote
send them a letter containing a password to their confirmed paypal address. For the cost of a stamp

So I believe he means that rudimentary form of communication of old, back from when fog prevented efficient communication using smoke signals, or background noise degraded the quality of whistle based conversations... I think they call it "snail mail", probably because it leaves a trail of goo or something :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nelisky on February 01, 2011, 02:09:31 AM
good point here. i do not see a similarity with smoke signals and other archaic methods. this is a legit requirement for new customers
to finish a registration including snail mail.

And once again my attempt at sarcasm goes completely unnoticed... I really suck at this! :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: markm on February 01, 2011, 12:42:57 PM
This forum account was not created for anonymity, nor was the corresponding freenode IRC nick, "knotwork".

WHOIS knotwork.com and WHOIS knotwork.net are also not intended to be anonymity tools.

Until I develop a means for hosting to pay for itself neither of these domains are actually hosted. I registered them through, and keep them at, networksolutions mainly because it seemed to be the direct descendant of the original NIC and I figured if it actually is CIA NSA etc crony then at least maybe it inherits classic U.S. freedom of speech traditions as well as the military backing of the U.S. Marine Corp.

The PayPal address I use for making money purposes is at a subdomain of knotwork.com thus does not actually work for email, but PayPal, happily, does still allow it to work for PayPal transactions.

I might have some e-gold rotting (storage fees) in an e-gold account if it hasn't already rotted to nothing but PayPal balances might rot faster due to inflation so this thread came to my attention in the process of wondering whether I might be better off moving my seldom used PayPal balance(s) over to BitCoin. So figured I might as well at least start toward such a potential future by introducing myself.

-MarkM-


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: dacoinminster on February 01, 2011, 05:44:10 PM
. . . Hopefully this information won't push up the value of bitcoins too quickly, since I haven't finished buying the ones I want yet . . .

Bitcoin values have shot up since I posted these ideas. I wonder if speculators are betting that ease of buying bitcoins through coinpal is going to result in lots more people trying to buy them. What have I DONE??

I'm taking credit for the jump, whether or not I had anything to do with it :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 03, 2011, 11:29:06 PM
I finished some more changes, so CoinPal (http://coinpal.ndrix.com) is open to the public again.  I'll try to keep it stocked and open for the next couple days.  Please let me know if you encounter any problems.

If you see the "out of stock" message, try back after 1500 UTC, which is usually when I replenish the server's bitcoins.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nanotube on February 04, 2011, 05:21:44 AM
mndrix: a suggestion for you
you should also offer to buy bitcoin in exchange for paypal.
no risk for you, plus way to refill your bitcoin stock.

there has been some talk on #bitcoin-otc about demand for ability to sell bitcoins at a fixed price without having to deal with forex trading on the markets.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 04, 2011, 03:25:47 PM
mndrix: a suggestion for you
you should also offer to buy bitcoin in exchange for paypal.
no risk for you, plus way to refill your bitcoin stock.

Thanks for the suggestion.  I'm definitely interested in implementing a service along those lines. It'd be a perfect complement to CoinPal.

Incidentally, all this anti-fraud effort on CoinPal has reminded me how important Bitcoin is.  I can't imagine how many thousands of hours of productive effort is currently wasted on fraud prevention for credit card and PayPal payments.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 07, 2011, 03:15:13 PM
The server ran out of coins on Sunday, but I've restocked now.  I'll try to keep it stocked all week.  I'm away from the computer on Sundays and since anti-fraud changes are still in early testing, I'm hesitant to carry large inventories when I'm away. Hopefully this restriction will only last a couple more weeks.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 12, 2011, 03:17:42 AM
I just fixed a bug on CoinPal (http://coinpal.ndrix.com) which caused some customers to see an error about a "malformed email address" during PayPal checkout. If you got this message, you might have better luck now.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: wizzard0 on February 12, 2011, 10:36:49 AM
Hi, i'm just placed my first order on your website, and also have a suggestion on the API:

Could you please make a field with description (like, Order ID), and hit (from your server) a shop URL with the customer's chosen details (I understand not everyone is willing to share their email) and that ID, to make automated purchases possible?

Oh, wait, I could (and should) issue new BC address for every transaction. That would fix it.
But I'll post it anyway, in case somebody has the same idea...


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 12, 2011, 01:53:56 PM
Oh, wait, I could (and should) issue new BC address for every transaction.

This is one of my favorite Bitcoin tricks.  I'll update the API page to mention it since others may have the same use case.  Thanks for the suggestion and the purchase.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 14, 2011, 03:15:01 PM
Once again I kept Bitcoin inventory low on Sunday when I was away.  The server has plenty more Bitcoins now.  If you were unable to place an order this weekend, you can place one now.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: bitjet on February 14, 2011, 07:27:58 PM
Once again I kept Bitcoin inventory low on Sunday when I was away.  The server has plenty more Bitcoins now.  If you were unable to place an order this weekend, you can place one now.

I ordered 40 btc 4 hours ago and nothing so far.....


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: gusti on February 14, 2011, 07:30:06 PM
Once again I kept Bitcoin inventory low on Sunday when I was away.  The server has plenty more Bitcoins now.  If you were unable to place an order this weekend, you can place one now.

I ordered 40 btc 4 hours ago and nothing so far.....

You can check if transaction was done, putting your receiving address here :
http://blockexplorer.com



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 14, 2011, 08:49:16 PM
I ordered 40 btc 4 hours ago and nothing so far.....

Responded with details by PM


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 14, 2011, 09:55:17 PM
I just spent 20 minutes on the phone with PayPal's anti-fraud department.  They were fully aware what Bitcoin is and essentially, they're fine with CoinPal operating as long as I keep fraud levels low.  They're OK with me increasing the purchase limits if I ever feel comfortable doing so.  Overall, the tone of the conversation was very positive.  They offered suggestions for reporting fraud to them and for lowering my PayPal fees.

They requested that I not explicitly show the PayPal fees during the order process.  To comply, I'll change that during the next couple days.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: S3052 on February 14, 2011, 10:15:08 PM
By the way, I have made very good experiences with Paypal lately as well. Their customer service was immaculate.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Grinder on February 14, 2011, 11:12:10 PM
mndrix: a suggestion for you
you should also offer to buy bitcoin in exchange for paypal.
no risk for you, plus way to refill your bitcoin stock.

Thanks for the suggestion.  I'm definitely interested in implementing a service along those lines. It'd be a perfect complement to CoinPal.
I sure hope you do it. I've been trying to figure out how I can withdraw money to my country if I sold them through mtgox. After registering an account there and at Liberty Reserve and then realizing I would need at least one more middle man, I gave up. I would sell them noticeably lower than market price to you if I could get the money directly to my PP account. Because you run this as a business it would also be a lot easier to trust you, so I would have no problems sending the Bitcoins before receiving the money.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: MDKing on February 14, 2011, 11:30:56 PM
Just used your service for my first purchase of bitcoins. Despite having my order manually reviewed and having to go through some additional steps the entire order was resolved in around 10 to 15 minutes and went very smoothly. Great service will certainly use your service again in the future. Wish you continued success!


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 14, 2011, 11:32:13 PM
mndrix: a suggestion for you
you should also offer to buy bitcoin in exchange for paypal.
no risk for you, plus way to refill your bitcoin stock.

Thanks for the suggestion.  I'm definitely interested in implementing a service along those lines. It'd be a perfect complement to CoinPal.
I sure hope you do it.

I started coding this a few days ago, but the current surge in Bitcoin interest has kept me really busy with CoinPal orders.  I'll continue working on the project this week, as time permits.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mgiuca on February 16, 2011, 04:54:04 AM
I just tried CoinPal for my first non-faucet bitcoins, and I can confirm it worked well, and very speedily (if you have a verified Paypal account). Thanks very much for setting up this service, mndrix. I hope it works out for you.

I have one major security complaint about the service, which I think you could easily fix: Once I have typed my Bitcoin address in on the first screen, it is never displayed back to me. For starters, this means I have no way to verify that the account I have typed (which I am paying real money for) is actually an account under my control.

There is a real security problem here: a man in the middle could intercept my initial request and have the funds redirected to his account, without me being able to before purchase. First, there is no SSL (HTTPS) connection, so a man in the middle attack is possible. While using SSL would help, certificates are expensive and I'm not saying you need to get one. Just that in its absence, we have to assume someone is able to view and modify the HTTP traffic as it goes between my browser and ndrix.com. Now consider this scenario:

1. At http://coinpal.ndrix.com/, I enter my email address, amount and Bitcoin address.
2. A hacker intercepts the HTTP request, and modifies the bitcoin_address field to contain his address instead of mine. He leaves my email address and BTC amount as they are, and forwards the modified request on to ndrix.com.
3. On your server, this creates a new unique ID "534fxxxx", with my email address, my requested amount, and the hacker's Bitcoin address.
4. I am redirected to http://coinpal.ndrix.com/confirm/534fxxxx, which displays the requested number of BTC and conversion rate. I click "Continue" and am redirected to http://coinpal.ndrix.com/email_verify_instructions.
4. On your server, this creates another new unique ID "285xxxx" (I'm not sure what the second unique ID is, but neither contain my Bitcoin address).
5. I receive an email titled "CoinPal email verification (order 534fxxxx)" telling me to click the link "http://coinpal.ndrix.com/continue_order/2855xxxx". It contains both of the unique IDs for this transaction, but no Bitcoin address.
6. I click through to http://coinpal.ndrix.com/continue_order/2855xxxx, which tells me the number of BTC I am about to purchase and how much it will cost. I click "Buy Now".
7. I am redirected to Paypal (now on a secure connection) and asked to log in to Paypal. My order summary includes the number of BTC I am buying and the cost in USD. It also includes the first unique ID, "Item number: 534fxxxx". Nowhere does it say which Bitcoin address the funds are going to. I log in to Paypal and click "Pay now". The funds are removed from my Paypal account.
8. After the order is confirmed, CoinPal credits the hacker's Bitcoin account!.

(Note: This did not happen to me, it is just a hypothetical scenario. Ironically, the post-payment email I received did include my Bitcoin account.)

So there is a common theme here: The bitcoin address is never displayed throughout the process. Were it displayed, I could check in the final step that I am indeed transferring bitcoin to an account under my control. The address should be displayed in all of the following places:
  • On the http://coinpal.ndrix.com/confirm/534fxxxx page
  • In the confirmation email
  • On the http://coinpal.ndrix.com/continue_order/2855xxxx page
  • In the Paypal description (I haven't sold through Paypal before, but I gather you can load arbitrary text into the item description?)

The email and the Paypal description are the critical ones. For either the confirm or continue_order pages on your site, the hacker could keep up his spoofing, and relay back to me the address I entered, even though on the server it is planning to send the coin to his address. Therefore, these two pages should simply display the address, and not prompt the user to verify it (as it is untrustworthy). However, it will be much harder for the hacker to spoof the email (if he does, you will send one too, and I'll know something is up), and impossible to spoof the Paypal description, given that it is under heavy SSL. Therefore, both the email AND the Paypal description should not only display the Bitcoin address, but actively encourage the user to verify that this is the same address he requested. When I am about to click "Pay now", I should be able to do a final check.

I would be (and was) wary of using this system without the address at least appearing in the Paypal item description.

Some further feedback:
  • There is nowhere on the site that says that I am paying in US dollars, until I get through to Paypal. You should prefix all the "$" signs with "US".
  • The confirmation email contains the text "If you did not place an order with CoinPal, it's likely that your PayPal and email accounts have been hacked. Check PayPal for unauthorized transactions and change passwords promptly." I don't follow this logic. Anybody who knows my email address could have typed it into the order page and caused me to receive that email. It isn't a security risk, as it wasn't triggered from my Paypal account. There should be no problem unless I actually go through with it. So the message should read "If you did not place an order with CoinPal, you should ignore this email." (Unless there is some other cause for alarm?)
  • I am a bit confused as to why the transaction has two separate IDs. What is the purpose of having both the 534fxxxx and the 2855xxxx IDs?

I hope you can use this feedback to improve this great service.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Quip on February 16, 2011, 05:05:04 AM
<shameless plug>
If you only need a few BTC I am selling them on my website (http://dylanw.dyndns.tv:8331/lvbx/) with no email verification or convenience fees.
</shameless plug>


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 16, 2011, 03:14:40 PM
So there is a common theme here: The bitcoin address is never displayed throughout the process. Were it displayed, I could check in the final step that I am indeed transferring bitcoin to an account under my control.

Thanks for the detailed feedback.  I'll see about showing the Bitcoin address on the PayPal checkout page.  I agree that it's useful information to see there.


Quote
There is nowhere on the site that says that I am paying in US dollars, until I get through to Paypal. You should prefix all the "$" signs with "US".

Good point.  I'll change this shortly.

Quote
The confirmation email contains the text "If you did not place an order with CoinPal, it's likely that your PayPal and email accounts have been hacked. Check PayPal for unauthorized transactions and change passwords promptly." I don't follow this logic. Anybody who knows my email address could have typed it into the order page and caused me to receive that email. It isn't a security risk, as it wasn't triggered from my Paypal account. There should be no problem unless I actually go through with it. So the message should read "If you did not place an order with CoinPal, you should ignore this email." (Unless there is some other cause for alarm?)

Past experience shows that someone unexpectedly receiving a verification email almost certainly has her PayPal account stolen.  This particular wording has caught two fraudulent transactions so far.  Considering those benefits, I'll probably leave the wording as is.

Quote
I am a bit confused as to why the transaction has two separate IDs. What is the purpose of having both the 534fxxxx and the 2855xxxx IDs?

If both URLs have the same ID, an attacker wouldn't need to receive the verification email since he could just copy and paste the first ID into the second URL.  This email verification step has stopped a couple more fraudulent transactions.

Thanks again for the excellent feedback.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 16, 2011, 05:45:28 PM
I just fixed a bug which caused some first time customers to be told they had exceeded their weekly purchase limit even though they had never placed an order before.  Sorry for the trouble.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Littleshop on February 16, 2011, 06:12:05 PM
I just did a purchase.  I have noscript running under firefox and I had to allow your site or receive a cross site scripting error.  

My coins were deposited quickly (3 mins).  After 25 mins I had 5/unconfirmed.

After 30 mins it was 7/confirmed.

Thanks!


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 16, 2011, 07:07:11 PM
I just did a purchase.  I have noscript running under firefox and I had to allow your site or receive a cross site scripting error.  

I'll look into it.  Thanks for the report.

Quote
Thanks!

You're welcome


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: wizzard0 on February 17, 2011, 12:23:27 AM
Quote
The confirmation email contains the text "If you did not place an order with CoinPal, it's likely that your PayPal and email accounts have been hacked. Check PayPal for unauthorized transactions and change passwords promptly." I don't follow this logic. Anybody who knows my email address could have typed it into the order page and caused me to receive that email. It isn't a security risk, as it wasn't triggered from my Paypal account. There should be no problem unless I actually go through with it. So the message should read "If you did not place an order with CoinPal, you should ignore this email." (Unless there is some other cause for alarm?)

Past experience shows that someone unexpectedly receiving a verification email almost certainly has her PayPal account stolen.  This particular wording has caught two fraudulent transactions so far.  Considering those benefits, I'll probably leave the wording as is.


Wow. Could you publish a fraud statistics at some point?

I have been told by security people at two large banks that the fraud percent for Visa is as high as 7.5-9%, do you get roughly the same numbers?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mgiuca on February 17, 2011, 12:58:53 AM
Past experience shows that someone unexpectedly receiving a verification email almost certainly has her PayPal account stolen.  This particular wording has caught two fraudulent transactions so far.  Considering those benefits, I'll probably leave the wording as is.
Fair enough. I guess there's no incentive to send it to someone else's email address anyway. I suppose the attack vector here is if you have compromised someone's PayPal, you need to request an email for their address, and then perhaps (somehow) read the email as it comes through -- maybe you have also compromised their Gmail or are MITMing them at a coffee shop.

If both URLs have the same ID, an attacker wouldn't need to receive the verification email since he could just copy and paste the first ID into the second URL.  This email verification step has stopped a couple more fraudulent transactions.
Of course! Silly of me not to realise that earlier.

Thanks again for the excellent feedback.
No problem. Yours seems to be the only automated service doing this (for small transactions). I think it's a valuable service so I want to make sure I can trust it (from a security point of view). You seem to have considered a lot of things.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on February 17, 2011, 03:35:33 AM
Would there be a benefit to use two factor authentication such as sending an sms to the account holders phone with a login code ?

Someone might hack your  email but it would be unusual if they also stole your phone....

o


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mgiuca on February 17, 2011, 05:44:45 AM
Note that they would have to simultaneously break into both your email and Paypal account. Just receiving the confirmation email doesn't let you steal money, because they can't log into your Paypal to complete the transaction.

There are thousands of online sellers who use Paypal, via an email confirmation. Selling Bitcoins is no different than selling anything else. It's perfectly secure the way it is (email and Paypal verification) without requiring a mobile phone confirmation. (Except for the man-in-the-middle problem I outlined above.)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 17, 2011, 03:20:59 PM
Wow. Could you publish a fraud statistics at some point?

I have been told by security people at two large banks that the fraud percent for Visa is as high as 7.5-9%, do you get roughly the same numbers?

So far the fraud rate is about 4%.  However, the first sale is only 47 days old, so there are still 133 days before I know for sure if that payment was good.  That long time lag is the most troublesome part of accepting PayPal payments.

And people complain about waiting 30 minutes for a few confirmation blocks  ;)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 17, 2011, 03:26:22 PM
Would there be a benefit to use two factor authentication such as sending an sms to the account holders phone with a login code ?

Someone might hack your  email but it would be unusual if they also stole your phone....

I think it would help.  On risky orders, I manually send SMS verifications or call the customer on the phone.  That's caught a couple fraudulent transactions.  I have code in place to do automated phone verifications for risky orders, but haven't yet decided whether it's worth the cost, so I do them manually for now.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mgiuca on February 19, 2011, 01:22:11 AM
Great -- I just bought some more and I can confirm that CoinPal now displays the receiving address in the PayPal confirmation screen. Thanks, mndrix. That puts all of my security concerns to rest.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: gusti on February 19, 2011, 01:34:33 AM
Wow. Could you publish a fraud statistics at some point?

I have been told by security people at two large banks that the fraud percent for Visa is as high as 7.5-9%, do you get roughly the same numbers?

So far the fraud rate is about 4%.  However, the first sale is only 47 days old, so there are still 133 days before I know for sure if that payment was good.  That long time lag is the most troublesome part of accepting PayPal payments.

And people complain about waiting 30 minutes for a few confirmation blocks  ;)

If you can only accept Paypal transactions as "Mass payment", they are not reversable.
And fee is only $1 max. But Paypal account must be funded, no credit card transaction allowed.



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 21, 2011, 03:01:14 PM
If you can only accept Paypal transactions as "Mass payment", they are not reversable.
And fee is only $1 max. But Paypal account must be funded, no credit card transaction allowed.

Thanks for the suggestion.  I've considered MassPay as a way of reducing the PayPal fees and shortening my chargeback risk timeline (from 180 days for credit cards to 45 days for PayPal).  Can you provide a link to PayPal documentation about MassPay not being reversible?  I've heard that before, but never found an official statement about it.  I suspect it's not true because scammers would then just use Mass Pay to transfer funds from stolen accounts to freshly-minted PayPal accounts where they could spend the money at their liesure.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 21, 2011, 03:03:46 PM
Over the weekend, someone discovered a clever timing attack to circumvent the volume limits.  For the next couple days, while I patch the vulnerability, only beta testers can purchase coins.  I've also restocked the server's coin inventory, so beta testers who couldn't get coins yesterday can get them now.

I'll post to this thread once the site is open to the public again


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: gusti on February 21, 2011, 03:14:10 PM
If you can only accept Paypal transactions as "Mass payment", they are not reversable.
And fee is only $1 max. But Paypal account must be funded, no credit card transaction allowed.

Thanks for the suggestion.  I've considered MassPay as a way of reducing the PayPal fees and shortening my chargeback risk timeline (from 180 days for credit cards to 45 days for PayPal).  Can you provide a link to PayPal documentation about MassPay not being reversible?  I've heard that before, but never found an official statement about it.  I suspect it's not true because scammers would then just use Mass Pay to transfer funds from stolen accounts to freshly-minted PayPal accounts where they could spend the money at their liesure.

You are absolutely right, there is no such official statement.
Only more difficult to open a dispute, but no protection on stolen accounts.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 22, 2011, 05:27:04 PM
I've fixed the timing attack weakness, so the service is open to the public again.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 25, 2011, 06:03:43 PM
The CoinPal "opposite" service (called CoinCard (http://bitcointalk.org/index.php?topic=3874.0)) is now available.  It lets you sell Bitcoins for automatic PayPal payments.  The fee is 3% for payments under $50 and $1 + 1% for payments $50 or higher.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Scarecrow on February 25, 2011, 09:16:30 PM
Today I bought my first Bitcoins and I got them through CoinPal. Just to say that the purchasing process was quite simple and despite the need to verify my transaction, I received my Bitcoins within an hour. Based upon my first experience, I can completely recommend CoinPal.
 ;D


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mike Hearn on February 26, 2011, 10:34:37 AM
This is just a heads up that CoinPal might be broken at the moment. I just tried to place an order and PayPal told me that there was a problem with the sellers email address that meant the transaction could not be processed.

Given mndrixs performance so far I'm sure this will be resolved shortly.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 26, 2011, 02:21:45 PM
This is just a heads up that CoinPal might be broken at the moment. I just tried to place an order and PayPal told me that there was a problem with the sellers email address that meant the transaction could not be processed.

Given mndrixs performance so far I'm sure this will be resolved shortly.

This problem should be resolved now.  [mike], thanks for the report.

For other users who may encounter this problem: this particular error intermittently affects only a few individual orders and for various reasons I've chosen to resolve the problem manually.  If you encounter the error, PM me your PayPal email address and I'll take care of the problem as soon as I can.  Sorry the inconvenience of the manual process.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mike Hearn on February 26, 2011, 03:52:03 PM
Yes, the problem is fully resolved. It's a shame PayPal seems to be flaky but as expected mndrix provided exemplary customer service. He even added me to the beta testers list!

CoinPal is great and I look forward to doing business with Hendrix Solutions a lot more in future.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: ethwit on February 27, 2011, 07:44:52 AM
This is just a heads up that CoinPal might be broken at the moment. I just tried to place an order and PayPal told me that there was a problem with the sellers email address that meant the transaction could not be processed.

Given mndrixs performance so far I'm sure this will be resolved shortly.

This problem should be resolved now.  [mike], thanks for the report.

For other users who may encounter this problem: this particular error intermittently affects only a few individual orders and for various reasons I've chosen to resolve the problem manually.  If you encounter the error, PM me your PayPal email address and I'll take care of the problem as soon as I can.  Sorry the inconvenience of the manual process.

I just ran into the same problem about 90 minutes ago.  i tried using the link i received in email a while later, and got a message that my order had expired.  Upon attempt to re-order i received a message that i exceeded my weekly limit...

?help

thank you

-tom



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: MDKing on February 28, 2011, 12:28:37 AM
Great service, I've used it several times already. Today was my first large purchase of 40 BTC. Is the weekly limitation of 40 BTC still enforced?



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on February 28, 2011, 04:13:10 PM
Great service, I've used it several times already. Today was my first large purchase of 40 BTC. Is the weekly limitation of 40 BTC still enforced?

Thanks.  Yes, the 40 BTC limit is still enforced.  Once I have a better handle on fraud levels, I plan to increase the limit for returning customers.  It may be another month before that happens though.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: abstraction on March 01, 2011, 01:09:47 AM
I'm now getting an invalid bitcoin address message. I've not seen this before.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 01, 2011, 01:42:08 AM
I'm now getting an invalid bitcoin address message. I've not seen this before.

The bitcoin daemon on my server crashed causing the BTC address verification to fail.  I've restarted the daemon and test orders appear to be working fine.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 01, 2011, 12:12:24 PM
The bitcoin daemon hung again.  CoinPal is closed until I can figure out what's going on


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 02, 2011, 02:52:02 PM
CoinPal is open again.

I wasn't able to pinpoint the bitcoind problem, but I did upgrade to 0.3.20.01, so we'll see if that fixes it.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mgiuca on March 07, 2011, 01:56:00 AM
Good work on CoinCard. I have been wondering for awhile how to get coins out of the Bitcoin system without doing a mass trade on MtGox. I just wrote up a blog post (http://mattblr.tumblr.com/post/3686935855/how-to-order-a-pizza-with-bitcoin) about CoinCard (but I haven't yet tried it myself).

The Domino's "proof of concept" was a good idea. Any idea whether Domino's gift cards work outside the United States? (Actually, given that last week I went to a Domino's store with one of their own vouchers and they told me it was invalid and I had to pay full price, I'm unlikely to try CoinCard on them. But I might try the PayPal approach.)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: doublec on March 07, 2011, 02:20:31 AM
The Domino's "proof of concept" was a good idea. Any idea whether Domino's gift cards work outside the United States?

They are US only, excluding Hawaii and Alaska.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 07, 2011, 02:42:35 PM
Good work on CoinCard. I have been wondering for awhile how to get coins out of the Bitcoin system without doing a mass trade on MtGox. I just wrote up a blog post (http://mattblr.tumblr.com/post/3686935855/how-to-order-a-pizza-with-bitcoin) about CoinCard (but I haven't yet tried it myself).

Thanks for the write-up.  doublec's response is spot on about Domino's gift card validity.

For anyone who tried to buy coins through CoinPal yesterday, I've restocked my inventory.  I added a bunch more coins on Saturday night, but it still wasn't enough to see us through Sunday's purchases.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 08, 2011, 05:09:55 PM
PayPal approved me for one of their merchant rates.  I've passed the full savings through to buyers by decreasing CoinPal fees 0.4 percentage points.

I've also finished some analysis on past fraud rates and patterns.  As a result, I've increased purchase limits for customers 14 and 45 days after their first successful order.  This is a calculated risk and I may reverse this decision as more data comes in.  You can read details about the new limits (http://coinpal.ndrix.com/page/limits).


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: 8668 on March 09, 2011, 01:18:26 AM
PayPal approved me for one of their merchant rates.  I've passed the full savings through to buyers by decreasing CoinPal fees 0.4 percentage points.

I've also finished some analysis on past fraud rates and patterns.  As a result, I've increased purchase limits for customers 14 and 45 days after their first successful order.  This is a calculated risk and I may reverse this decision as more data comes in.  You can read details about the new limits (http://coinpal.ndrix.com/page/limits).


Good deal! You can count on my orders increasing by around 0.4%   ;D


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 09, 2011, 06:16:46 PM
CoinPal was down for a couple hours while I upgraded the server.  It's back now


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 23, 2011, 01:40:32 PM
bitcoind crashed last night.  I've restarted it and the site is taking orders again.  If you placed an order before the crash and didn't get your coins, hang tight.  I'll send them shortly.  Sorry for the trouble


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mike Hearn on March 24, 2011, 05:49:33 PM
Did you get a core dump? It might be useful. There must be a memory corruption or race in there. Maybe time t break out Valgrind.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: dsg on March 24, 2011, 07:34:19 PM
Did you get a core dump? It might be useful. There must be a memory corruption or race in there. Maybe time t break out Valgrind.

Not sure it'd be wise to post bitcoin coredumps online publicly, as it seems likely there might be private keys in them. This may not be obvious to everyone.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 24, 2011, 08:51:36 PM
Sorry, I should have said "hung" rather than "crashed".  The daemon process was still alive and the debug log showed it was still involved in peer exchange, but it wouldn't respond to RPC calls.  This has happened enough, I'll post what I know in the developer channel.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: jgarzik on March 24, 2011, 09:11:21 PM
Did you get a core dump? It might be useful. There must be a memory corruption or race in there. Maybe time t break out Valgrind.

Unfortunately c3f140033c531e9c5eae920c16fe2ecc80faa1a2 in bitcoin.git catches SIGSEGV, which means no more core dumps :/


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 25, 2011, 07:09:55 PM
CoinPal now offers increased purchase limits (http://coinpal.ndrix.com/page/prices) for buyers with good OTC ratings (ranging from 10 to 120 BTC per week).  More details are available at the bottom of the purchase limits page.  Of course, people can still use CoinPal without knowing anything about PGP or OTC.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 29, 2011, 03:59:46 PM
PayPal reduced my fees again.  I'm passing on those savings, so customers should save about $0.10 in fees on a typical order.  This is probably the last fee reduction PayPal will give me for a while.  I'm still considering ways to reduce the 3% fee that I keep for myself.  Unfortunately, fraud rates have eaten most of that 3% so far.  Hopefully as I improve fraud detection mechanisms, I'll be able to do it.

I've also recalculated the fee range that I show on the Prices page.  Because of PayPal's fixed $0.30 processing fee per order, it's possible for some small orders paid with non-US PayPal accounts to reach  a 10% effective fee.

I'm planning to sell Bitcoins for Dwolla (https://en.bitcoin.it/wiki/Dwolla) starting sometime this summer.  The fees will be substantially lower since they only charge $0.25 per transaction.  Of course, this will only help US customers.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: eMansipater on March 29, 2011, 04:03:49 PM
CoinPal now offers increased purchase limits (http://coinpal.ndrix.com/page/prices) for buyers with good OTC ratings (ranging from 10 to 120 BTC per week).  More details are available at the bottom of the purchase limits page.  Of course, people can still use CoinPal without knowing anything about PGP or OTC.
This is great!  For newcomers to the OTC web of trust, would it be possible to earn a few trust points through repeated purchasing?  I know I've used CoinPal relatively often since its inception, so as my initial purchases pass the maximum time for chargebacks that ought to be worth a point or two, no?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 29, 2011, 04:12:25 PM
CoinPal now offers increased purchase limits (http://coinpal.ndrix.com/page/prices) for buyers with good OTC ratings (ranging from 10 to 120 BTC per week).  More details are available at the bottom of the purchase limits page.  Of course, people can still use CoinPal without knowing anything about PGP or OTC.
This is great!  For newcomers to the OTC web of trust, would it be possible to earn a few trust points through repeated purchasing?  I know I've used CoinPal relatively often since its inception, so as my initial purchases pass the maximum time for chargebacks that ought to be worth a point or two, no?

Definitely.  Eventually, this will be automated.  Until then, link your GPG account to your CoinPal account (as mentioned above).  Then PM me on IRC asking that I rate you for CoinPal orders


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: eMansipater on March 29, 2011, 04:17:46 PM
CoinPal now offers increased purchase limits (http://coinpal.ndrix.com/page/prices) for buyers with good OTC ratings (ranging from 10 to 120 BTC per week).  More details are available at the bottom of the purchase limits page.  Of course, people can still use CoinPal without knowing anything about PGP or OTC.
This is great!  For newcomers to the OTC web of trust, would it be possible to earn a few trust points through repeated purchasing?  I know I've used CoinPal relatively often since its inception, so as my initial purchases pass the maximum time for chargebacks that ought to be worth a point or two, no?

Definitely.  Eventually, this will be automated.  Until then, link your GPG account to your CoinPal account (as mentioned above).  Then PM me on IRC asking that I rate you for CoinPal orders
Cool, will do.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 31, 2011, 02:36:30 PM
I had another wave of fraudulent orders last night.  CoinPal is down for maintenance until I can make some more anti-fraud adjustments.  Hopefully I'll be able to reopen later tonight.

CoinCard is still operating as normal


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: dacoinminster on March 31, 2011, 06:22:01 PM
I had another wave of fraudulent orders last night.  CoinPal is down for maintenance until I can make some more anti-fraud adjustments.  Hopefully I'll be able to reopen later tonight.

Ugh. That stinks. How bad was it?

Remember my idea about using a physical letter to a physical address? All you need is to hook into a service like L-Mail and send the buyer a verification code to their mailing address, and you can have strong proof that the account isn't stolen.

I also think you should automate your SMS verification so you can run that before a new buyer places their first order.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 31, 2011, 07:53:42 PM
Ugh. That stinks. How bad was it?

I probably won't know the full extent for another couple weeks.  It's bad enough that I need to make some reasonable changes, but not bad enough to quit yet :)

Quote
Remember my idea about using a physical letter to a physical address? All you need is to hook into a service like L-Mail and send the buyer a verification code to their mailing address, and you can have strong proof that the account isn't stolen.

I also think you should automate your SMS verification so you can run that before a new buyer places their first order.

Thank you for the ongoing suggestions. I've been testing both of these techniques for the last couple months.  I don't yet have enough data to expand them to all purchases yet.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: morpheus on March 31, 2011, 09:35:42 PM
Anyone still looking to buy bitcoin with Paypal while mndrix's service is down can use my service: http://bitcoinmorpheus.tumblr.com/


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on March 31, 2011, 11:16:59 PM
I wasn't able to finish all the changes today.  I'll try and reopen the site for trusted buyers (those with a purchase limit over 40 BTC per week) tomorrow morning.  Until then, I can vouch for morpheus' service.  I've purchased from him before with excellent results.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mewantsbitcoins on April 01, 2011, 01:57:26 AM
mndrix, in my opinion your service is vital to the expansion of this community. I recently come back to Bitcoins after about a year out of touch and only stayed here because I was able to purchase some Bitcoins via CoinPal. I am sure morpheus' service is a viable option, but instantanious transactions is what today's public is expecting

One idea I had was - you could limit number of transactions/time period. I know you already have 40/a day, but I think it should be more restrictive. The amount could stay the same but lets say you only do 40/week/person. This would limit the damage in case of fraud while still allowing legit users to get their initial 40 Bitcoins and participate in the community, playing bitlotto or whatever. With time restriction could be lifted


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Ricochet on April 01, 2011, 02:06:08 AM
Isn't the limit already 40 BTC per week, not per day?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mewantsbitcoins on April 01, 2011, 02:10:27 AM
yes, just checked. my mistake.

maybe it should be 40/2 weeks then


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: error on April 01, 2011, 02:31:45 AM
Last time I checked, most of PayPal's internal fraud detection took place within the hour after the transaction. And while they send an email in the case of such a suspicious transaction, I don't recall whether anything comes across the API. In any case, if it came down to it, I'd be willing to wait an hour versus not having the service at all.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 01, 2011, 03:05:47 AM
Thank you all for the suggestions and comments.  I agree that near-instant Bitcoin sales help the community.  I'm not sure I'd be working on Bitcoin if the old Bitcoin Gateway hadn't been open the night I read Satoshi's paper.  I'll do what I can to keep the site open.

The current plan is to reduce the purchase limit for first-time buyers back to approximately $20 (essentially what mewantsbitcoins suggested).  That was the limit when I started, but Bitcoin appreciation has pushed it closer to $40 recently.  I'll also be changing the purchase limits for returning customers based on the chargebacks I've seen.  There will also be some behind-the-scenes changes which I can't describe in detail.

error, PayPal does report chargebacks through their API.  I'll keep the 1 hour window in mind. Thanks.

I also plan to enhance integration with the #bitcoin-otc web of trust, for those who want to participate.  I think the WOT makes many exciting Bitcoin projects possible.  If it were strong already, my work at CoinPal would be much easier :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 01, 2011, 03:07:06 PM
CoinPal is open again for trusted customers.  If you bought Bitcoins from the site more than 7 days ago, you fall into that category.  Of course, beta testers and those with OTC ratings are trusted as well.  I'm still planning to reopen to the public later today.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: dacoinminster on April 01, 2011, 03:26:38 PM
Being able to quickly and easily buy bitcoins is essential to their success, but the seller in such an enterprise is a HUGE fraud magnet.

Here's some other ideas:
 - Transfer the coins in installments, i.e. 10% of your order per hour
 - Bigger fees for first-time buyers
 - Add donation addresses to your forum post signatures and web pages so we can help support this essential service
 - Consider everyone a scammer until proven otherwise!

On Jan 7th, after some prodding by email, mndrix gave me this donation address, which I assume is still valid: 15VmbbyvpZQk7P4Vs7EvzYrGbtKTnW1f27

Obviously don't send anything there until he confirms it.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 01, 2011, 10:03:55 PM
CoinPal is open to the public again.  The donation address dacoinminster presented is correct.  I've put it in my signature in case others are inclined that way.

The only publicly visible change is that new customers can purchase only 20 BTC their first week.  After the first week, it goes up to 40 BTC.  After that, the old purchase limits apply.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Meni Rosenfeld on April 09, 2011, 07:04:15 PM
- Bigger fees for first-time buyers
 - Consider everyone a scammer until proven otherwise!
These are a bit problematic for a service supposed to be an easy entry point for newcomers.

The donation address dacoinminster presented is correct.
I don't mean to imply dacoinminster is untrustworthy, but it's good practice to quote such things for preservation.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 11, 2011, 03:50:27 PM
PayPal has placed a 5% reserve requirement on my account.  For each PayPal payment I receive, they hold 5% of the payment for 90 days.  This is a standard precaution for sellers of high-risk goods.  I'm a little surprised they didn't institute the requirement immediately after my initial discussions with them.  It reflects no dissatisfaction on PayPal's behalf.  They're just being cautious.  However, it is one more reason I'd love to see Bitcoin succeed :)

In the long-run, the reserve requirement shouldn't affect anyone but me.  It only translates to a $500 higher reserve than I had calculated for my own personal risk threshold.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nanotube on April 11, 2011, 03:53:04 PM
ooo interesting, mndrix. :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: sharkonwhisky on April 12, 2011, 03:38:27 AM
Hi there,

Forgive me ignorance as I'm new to the world of Bitcoin and CoinPal, but I have very recently purchased 12 Bitcoins, and was wondering how long it takes for them to appear in my Bitcoin account? Or have I missed something, it's definitely possible.

Thanks.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: kiba on April 12, 2011, 03:46:44 AM
Hi there,

Forgive me ignorance as I'm new to the world of Bitcoin and CoinPal, but I have very recently purchased 12 Bitcoins, and was wondering how long it takes for them to appear in my Bitcoin account? Or have I missed something, it's definitely possible.

Thanks.

There is no bitcoin account. Anyway, it takes about 10 minutes for a transaction to be confirmed.

IF there's no bitcoin that appears in your client, you probably didn't complete the download of blocks.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: sharkonwhisky on April 12, 2011, 03:51:44 AM
Okey dokey. Well I meant that Bitcoin thing on my computer. It turns out I've been selected for a manual review by CoinPal. Thanks for the prompt reply though, this is all new territory for me, all this talk of blocks makes me think of Tetris...definitely need to do a little more research on all this.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: travex on April 12, 2011, 08:11:27 AM
@mndrix : How come I cant sell more than 82 BTC in your site mate ? it always display "insufficient fund in your account... blah blah"


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Meni Rosenfeld on April 12, 2011, 09:44:37 AM
@mndrix : How come I cant sell more than 82 BTC in your site mate ? it always display "insufficient fund in your account... blah blah"
He doesn't have enough $$ on his PayPal balance. Check back in a day or so and he'll probably have it.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: travex on April 12, 2011, 12:42:27 PM
@mndrix : How come I cant sell more than 82 BTC in your site mate ? it always display "insufficient fund in your account... blah blah"
He doesn't have enough $$ on his PayPal balance. Check back in a day or so and he'll probably have it.

Thx mate  :D


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: sharkonwhisky on April 12, 2011, 02:13:28 PM
Hi,

Is there anywhere particularly good or useful that I can read the basics of what is going on? I just paid for 12 Bitcoins from CoinPal and my Bitcoin address had mysteriously changed again, with my coins being sent to my old address...are they lost to the void now and have I lost my money? Why would the address change if there were no transactions taking place? Or do they do it randomly when generating coins as well? Sorry having some probably quite simple and silly complications here.

Thanks.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: cdhowie on April 12, 2011, 02:15:54 PM
Is there anywhere particularly good or useful that I can read the basics of what is going on? I just paid for 12 Bitcoins from CoinPal and my Bitcoin address had mysteriously changed again, with my coins being sent to my old address...are they lost to the void now and have I lost my money? Why would the address change if there were no transactions taking place? Or do they do it randomly when generating coins as well? Sorry having some probably quite simple and silly complications here.

The GUI client will periodically present you with a new address, I think after a transaction is received at the one that was displayed before.  None of this matters though, because your client never discards secret keys.  In other words, as long as you have not lost your wallet, you will always be able to use coins that arrive at any address your client has ever created for itself.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Ricochet on April 12, 2011, 02:17:26 PM
EDIT:  Already answered by cdhowie while I was typing.  Oh well, posting anyway.

The client likes to make new addresses for you automatically.  I think it's supposed to happen only after you receive coins on a certain address (to encourage you to only use each address once) though I could swear it sometimes makes new ones just for the heck of it, lol.

Rest assured, as long as the address appears in your Address Book, it is valid and you will be able to accept coins on it as many times as you wish.  However, it is probably best to get into the habit of using each address only once, and clearly labeling each one so you know exactly where the coins came from.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: sharkonwhisky on April 12, 2011, 02:23:50 PM
Hey guys,

Many thanks for the very prompt replies. Yeah I think my address did just change for the hell of it, as the only previous transaction was my free 0.05 Bitcoins, and I've already had 3 different addresses. But my coins have come through now, think I'm new to the system and it takes a little while to get up to speed when you first start using it. Will definitely do some more reading around though.

Cheers.  8)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Meni Rosenfeld on April 13, 2011, 10:01:54 AM
Is there a problem with the site? I've been trying to use it and I keep getting the "invalid bitcoin address" message with several different addresses.
Looks like there is indeed a problem. I have used it successfully twice before, but now I get this message too.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 13, 2011, 02:17:43 PM
bitcoind hung last night causing the errors you observed.  It's restarted now and orders are coming through again.  On Friday, I'll try and upgrade my bitcoind to a version with the deadlock patch to prevent this from happening again.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 15, 2011, 08:54:12 PM
Based on some calculations of the discount rate of credit card scammers, I've increased the purchase limits (http://coinpal.ndrix.com/page/prices) for returning customers more rapidly than I was doing before.  I've also added a slight purchase limit increase for customers three days after their first purchase.  This 3-day increase is experimental and I may remove it on short notice.

For OTC users who have linked their GPG key to CoinPal (http://coinpal.ndrix.com/user/gpg), I've increased the purchase limits further still.  You'll now get more credit for positive ratings and being well-connected in the web of trust.

I've also upgraded bitcoind to a nightly build that includes the deadlock fix.  Hopefully, the service can now operate uninterrupted.

As always, I welcome feedback.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: rurah on April 17, 2011, 06:36:53 PM
Getting error when putting my Bitcoin address in.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nebiz on April 18, 2011, 01:27:21 AM
Same, getting error when putting my receive address in.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: EllisD on April 18, 2011, 06:38:08 AM
I get the same error, just postin to confirm other 2 posters' claims


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: clonedone on April 18, 2011, 01:09:56 PM
yeah I tried 4 different addresses but it still says its wrong.
hope you can fix it  :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 18, 2011, 02:06:13 PM
Same, getting error when putting my receive address in.

I've restarted some server components and the site appears to be working fine now.  I'll investigate the failures later this morning.  Thanks for the reports.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 18, 2011, 07:32:22 PM
I've reduced fees for repeat customers by .5 percentage points.  This reflects my reduced costs for servicing such customers.  First-time buyers still pay approximately the same as they did before.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: EllisD on April 18, 2011, 08:05:01 PM
bitcoin address was accepted, thanks


e - just received, thanks


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: grue on April 18, 2011, 08:10:08 PM
I've reduced fees for repeat customers by .5 percentage points.  This reflects my reduced costs for servicing such customers.  First-time buyers still pay approximately the same as they did before.
repeat customer = same email, correct?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 18, 2011, 09:28:41 PM
repeat customer = same email, correct?

Yes, that's right.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 18, 2011, 09:37:20 PM
I have to concentrate on some big projects that are coming up (not related to Bitcoin) and won't be able to devote much time to the forum for the next several months.  I'll still manage CoinPal as I have over the last few months.  I'll try to check in on this thread about once a week, usually on Fridays.  If you notice problems with CoinPal, please contact me at coinpal@ndrix.com so that I can fix them right away.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 18, 2011, 10:20:45 PM
For customers who have linked their PGP key to their CoinPal account (http://coinpal.ndrix.com/user/gpg), OTC ratings are now automatic.  Within an hour of linking your account, your OTC rating will be updated.  As you place new, successful orders, your rating will be updated if justified.  Likewise, chargebacks are automatically reported through negative ratings.

If CoinPal has already rated you for past trades, new trades may not give you a higher rating immediately.  The ratings are based on PayPal payment age and volume.  This is essentially the same formula I was using when rating OTC users manually.

Thanks to nanotube for making the automated ratings possible.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Meni Rosenfeld on April 20, 2011, 03:32:03 AM
I have to concentrate on some big projects that are coming up (not related to Bitcoin) and won't be able to devote much time to the forum for the next several months.  I'll still manage CoinPal as I have over the last few months.  I'll try to check in on this thread about once a week, usually on Fridays.  If you notice problems with CoinPal, please contact me at coinpal@ndrix.com so that I can fix them right away.
Good luck with those projects. I hope managing CoinPal/CoinCard will include improvements to their automation, robustness, prices and limits.

Have you considered making an automated service for selling MoneyPak for bitcoins? These can't be chargebacked, right? If it's possible, it should really help with maintaining cash for CoinCard while obviating your need to buy MoneyPak on the forum.

For customers who have linked their PGP key to their CoinPal account (http://coinpal.ndrix.com/user/gpg), OTC ratings are now automatic.  Within an hour of linking your account, your OTC rating will be updated.  As you place new, successful orders, your rating will be updated if justified.  Likewise, chargebacks are automatically reported through negative ratings.
I'm confused about the "Order ID" part of linking PGP. Does it need to be the order ID of any one of my orders, the first one, all of them?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 20, 2011, 02:35:20 PM
Have you considered making an automated service for selling MoneyPak for bitcoins? These can't be chargebacked, right? If it's possible, it should really help with maintaining cash for CoinCard while obviating your need to buy MoneyPak on the forum.

I have considered something similar.  I may pursue it further once my schedule lightens up.

Quote
For customers who have linked their PGP key to their CoinPal account (http://coinpal.ndrix.com/user/gpg), OTC ratings are now automatic.  Within an hour of linking your account, your OTC rating will be updated.  As you place new, successful orders, your rating will be updated if justified.  Likewise, chargebacks are automatically reported through negative ratings.
I'm confused about the "Order ID" part of linking PGP. Does it need to be the order ID of any one of my orders, the first one, all of them?

Any order ID will work.  I'll try to clarify the instructions.  Thanks for the feedback.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: eMansipater on April 21, 2011, 01:34:15 AM
@mndrix here's a driveby idea:  What about offering bitcoin subscriptions?  It would stabilise exchange rates during the inflationary period, reduce risk, and you could create an open futures market to fill them :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on April 21, 2011, 11:33:21 AM
@mndrix here's a driveby idea:  What about offering bitcoin subscriptions?  It would stabilise exchange rates during the inflationary period, reduce risk, and you could create an open futures market to fill them :)

Basically you could subscribe with paypal and automatically get coins sent each month or week ?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: eMansipater on April 21, 2011, 06:08:42 PM
@mndrix here's a driveby idea:  What about offering bitcoin subscriptions?  It would stabilise exchange rates during the inflationary period, reduce risk, and you could create an open futures market to fill them :)

Basically you could subscribe with paypal and automatically get coins sent each month or week ?
Yup.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 22, 2011, 09:28:28 PM
What about offering bitcoin subscriptions?

That's an interesting idea.  I'll consider it.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 22, 2011, 09:37:28 PM
Some CoinPal orders from first-time buyers are now verified with an automated phone call.  These orders were previously reviewed manually which required buyers to wait 2-48 hours for my attention.  The new system completes these orders immediately after verifying their phone number.  It should be a more pleasant experience for everyone :)

The phone number used is the one on your PayPal account.  The language used on the automated phone recording is one of 30 possible languages.  It's chosen based on your browser's Accept-Language header.

Some orders will still be reviewed manually.  Overall, I think this new approach provides more accurate order screening.  Hopefully it can help reduce fraud rates and labor costs so that I can further reduce CoinPal fees.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Ricochet on April 23, 2011, 12:01:15 AM
Heh, and Bitcoin once again forces me to check to see which phone numbers I have on file with various places.  The first time was when I was first buying Bitcoins through Bitcoin Gateway but realized my bank had my parents' home phone number on file instead of my own.  Wouldn't be surprised if I did that for PayPal too.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mike Hearn on April 23, 2011, 08:53:27 AM
That's excellent. You really are doing a superb job mndrix.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: eMansipater on April 25, 2011, 06:06:33 AM
That's excellent. You really are doing a superb job mndrix.
+1


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 29, 2011, 04:47:43 PM
I've been out sick for the last couple days and am just now catching up on emails.  I may continue to be slower than usual responding to emails over the coming few days.  Just so you know, I'm not ignoring you all on purpose :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Keefe on April 30, 2011, 05:22:50 AM
Welcome back. I hope you're feeling alright now.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 30, 2011, 06:11:27 PM
Because of recent Bitcoin appreciation and to keep fraud losses manageable, I've reduced the purchase limit for first time customers to 10 BTC.  All other purchase limits remain the same.

I may have to drop that limit to 5 BTC, if current prices and past fraud conditions remain constant.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Cheeseman on April 30, 2011, 08:32:21 PM
ETA on when the site will be back up?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 30, 2011, 10:25:16 PM
ETA on when the site will be back up?

Funny that you should ask.  PayPal just froze my accounts.  I'll post more details shortly.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: eleuthria on April 30, 2011, 10:33:20 PM
ETA on when the site will be back up?

Funny that you should ask.  PayPal just froze my accounts.  I'll post more details shortly.

That's not good, I hope it comes back up soon :(.  I've enjoyed using your service as a fast way to cash out my BitCoins to pay for new hardware.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on April 30, 2011, 10:49:18 PM

PayPal has frozen my account so CoinPal won't continue as we know it.  My funds (only about $5k) are tied up there for the next 180 days.  Read the huge wall of text below for all the details :)

History and details about the freeze

When I started coding CoinPal back in December 2010, I emailed compliance@paypal.com asking for permission to sell Bitcoins using PayPal.  I also emailed aupviolations@paypal.com seeking clarification on whether selling Bitcoins met their definition of "currency exchange".  After about two weeks, I received no response to either email. I decided to start operating the site, thinking they wanted to see something working before spending time on a response.

After operating for two months, PayPal's anti-fraud department called me to discuss some earlier chargebacks.  We spoke for 20 minutes and PayPal told me it was fine to sell Bitcoins as long as I kept chargebacks low.  Two months after that, PayPal placed a 5% reserve on my account.  I spoke with the high-risk goods department on the phone a few days later.  They were fine with me continuing business as long as I had a reserve on the account to cover any chargebacks that might arise.

Today PayPal called to say they were freezing my account because they consider Bitcoins an "ecurrency".  I told them that they had given me permission on two separate occasions to sell Bitcoins.  They responded, "that department isn't authorized to make those decisions."  The official statement in my account says "This limitation cannot be appealed."

During the entire time I operated CoinPal, my fraud rate was 1.5%  That includes the first wave of fraud when I was still learning how the scammers operated.  If that first weekend is excluded, my fraud rate was 0.9%  I obviously honored my end of the arrangement.

CoinPal was a success

During the four months that CoinPal operated, it helped introduce Bitcoin to 1,484 people by distributing 60,858 BTC (not counting MoneyPak trades).  It also helped 76 people (http://bitcoin-otc.com/viewratingdetail.php?nick=coinpal&sign=ANY&type=SENT) bootstrap their OTC ratings.

My personal view is that PayPal freezing my account is a coming of age for Bitcoin.  Previous PayPal account freezes in the Bitcoin community were related to chargeback volume.  That was obviously not the problem here.  Someone inside PayPal specifically decided that Bitcoin was a big enough risk that it should be prohibited.  I see no greater compliment to a Hydra than cutting off one of her heads :)

CoinPal's future

I'm not entirely sure what CoinPal's future will be.  I have a nice long train ride from Denver to San Francisco next week (on my way to Google IO) which should give me plenty of time to consider.

I've thought of selling Bitcoins for Dwolla, but it sounds like Mt Gox has that under control.  I'd consider selling/donating the CoinPal source code but PayPal will certainly shutdown any official sucessor now that they've decided that Bitcoins are "ecurrency".  The fraud detection code is probably the most valuable component.  Perhaps I can leverage that in some way to help Bitcoin succeed.  I can't open source the anti-fraud code since most anti-fraud measures are "security through obscurity".  Of course, I'm open to any suggestions on CoinPal's future.

CoinCard will be easier to bring back, minus PayPal payments.  It only needs a debit card number to operate.  A possible PayPal freeze was one reason I focused on "gift cards" rather than PayPal exclusively.

This whole situation has reminded me once again why distributed, resilient systems like Bitcoin and OTC are so important.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: LightRider on April 30, 2011, 10:55:53 PM
That sucks. Good luck with your future endeavors and all the shiny new toys they'll give you at Google IO.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: PabloW on April 30, 2011, 10:59:00 PM
Damn PayPal! :(
Now how im going to get my money i dont know. I sadly need paypal for now.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Ricochet on April 30, 2011, 10:59:19 PM
Well damn, really sorry to hear that.  Thanks again for your hard work.  


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mewantsbitcoins on April 30, 2011, 11:00:45 PM
What a bunch of cunts!

What if this community decided to put their paypal accounts where their mouth is and gave you their own account to operate coinpal with. Is it even feasible? If so, how many frozen paypal accounts do you think it would take for them to reverse the policy?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: BitcoinBonus on April 30, 2011, 11:06:16 PM

I also heard from Bitcoin Morpheus that PayPal has shut him down from receiving PayPal Payments.  He is tied up on another unrelated project this weekend and won't have much time to get back to people about this until Sunday night or Monday, but he'll provide an update on his service then.

--Darrell



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: PabloW on April 30, 2011, 11:11:27 PM
Anyone know an easy, still alive, service like this one to change bitcoins for paypal?
Im afraid of getting stuck now with my bitcoins, since the only way for me to get money at this time is this PayPal crap =/


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: beala on April 30, 2011, 11:12:29 PM
Ah darn. What frustrating news! I definitely really liked this service.

Anyway, please check your coincard email, mndrix. I sent you 50 BTC for an order I made right before your site went down for maintenance. I now see why I haven't received the paypal funds.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Ricochet on April 30, 2011, 11:21:59 PM
Anyone know an easy, still alive, service like this one to change bitcoins for paypal?
Im afraid of getting stuck now with my bitcoins, since the only way for me to get money at this time is this PayPal crap =/

At this point, I'm guessing your best bet would be Bitcoin-OTC, which can be relatively low-key and fly under Paypal's radar.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: n4l3hp on April 30, 2011, 11:30:32 PM
How about AlertPay?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: snelan on April 30, 2011, 11:35:42 PM
I don't know if this is possible, but could you replace the Paypal client with one that transfers to major Credit/Debit cards instead? There would be more trust involved here, but I know that wouldn't shy me away.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: PabloW on April 30, 2011, 11:41:33 PM
How about AlertPay?

Actually this might be a great idea. Also I think there's also some services that change alertpay money for paypal


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: joepie91 on April 30, 2011, 11:43:26 PM
Maybe you could try a payment processor like Plimus or 2Checkout as a "middleman" between you and Paypal?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Geomancer on April 30, 2011, 11:46:23 PM
Transferring to eWallets like Neteller would be good as well, but I haven't looked on their terms to see if they accept this kind of transfers.

For foreign users, it would be great to withdraw the funds at the ATM using Neteller's prepaid Master Card.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Ricochet on April 30, 2011, 11:51:27 PM
I don't know if this is possible, but could you replace the Paypal client with one that transfers to major Credit/Debit cards instead? There would be more trust involved here, but I know that wouldn't shy me away.

For a while, Bitcoin Gateway exchanged Bitcoins for debit/credit card funds, and that's actually how I got my first coins.  The problem is that credit cards (and debit to a lesser extent) also have the same chargeback/fraud issues that PayPal has.  The only reason Bitcoin Gateway was able to work is because the guy manually called up the bank to make sure it was actually your card, and then called you personally to confirm the order, using the phone number on file with the bank.  It was a lot of manual labor and because of that, it couldn't scale to the size that CoinPal/CoinCard reached.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: snelan on May 01, 2011, 12:01:22 AM
I don't know if this is possible, but could you replace the Paypal client with one that transfers to major Credit/Debit cards instead? There would be more trust involved here, but I know that wouldn't shy me away.

For a while, Bitcoin Gateway exchanged Bitcoins for debit/credit card funds, and that's actually how I got my first coins.  The problem is that credit cards (and debit to a lesser extent) also have the same chargeback/fraud issues that PayPal has.  The only reason Bitcoin Gateway was able to work is because the guy manually called up the bank to make sure it was actually your card, and then called you personally to confirm the order, using the phone number on file with the bank.  It was a lot of manual labor and because of that, it couldn't scale to the size that CoinPal/CoinCard reached.

I see. I do love how CoinCard is just a simple click of the mouse.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: djex on May 01, 2011, 12:19:02 AM
Wow this is really unfortunate. I just used coin card this morning and thought it was a great service and was easy to use.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: error on May 01, 2011, 12:21:17 AM
No way with such a low fraud rate that PayPal just suddenly decided to cut you off. I'll bet good bitcoins that somebody (i.e. the admins at overclock.net) tipped them off.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: snelan on May 01, 2011, 12:29:06 AM
No way with such a low fraud rate that PayPal just suddenly decided to cut you off. I'll bet good bitcoins that somebody (i.e. the admins at overclock.net) tipped them off.

I basically live by OCN, but I know those mods, and if one of them tipped PayPal off I'm gonna be really mad. There was a huge thread about it with like 3000 replies on OCN.

EDIT: Yea it just go closed, http://www.overclock.net/other-software/1001123-earn-your-gpu-bitcoin-mining-guide-165.html


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: error on May 01, 2011, 12:33:03 AM
No way with such a low fraud rate that PayPal just suddenly decided to cut you off. I'll bet good bitcoins that somebody (i.e. the admins at overclock.net) tipped them off.

I basically live by OCN, but I know those mods, and if one of them tipped PayPal off I'm gonna be really mad. There was a huge thread about it with like 3000 replies on OCN.

EDIT: Yea it just go closed, http://www.overclock.net/other-software/1001123-earn-your-gpu-bitcoin-mining-guide-165.html

It was huge because of the incredibly large number of trolls and naysayers. I was hardly expecting the staff to be trolls and naysayers themselves.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: snelan on May 01, 2011, 12:36:01 AM
Well, with every major forum comes trolls, and trolls there are on OCN.

I don't really blame the nay-sayers though, who would believe that you can sell bitcoins and acquire them by doing basically nothing?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Satori on May 01, 2011, 12:48:30 AM
PayPal, owned by eBay, is in the middle of their third class-action for defrauding customers and freezing accounts.

Regardless of whether or not the department that gave you permission to trade BitCoins was authorized to, you have their permission.  In commerce law, this is referred to as "principal and agent".  The agent (say a teller at a bank) is understood to represent the principal (the bank manager) and vice-versa.  If they misrepresent, it's the bank that must keep its word to you - not you that must be inconvenienced by the bank.  Same goes here.

As for "This limitation cannot be appealed", they mean within PayPal's internal faux-court.  In PayPal's EULA, there is a proviso which requires you to agree that, in the event of a dispute with PayPal, you agree to forfeit your access to a real court and must instead seek remedy exclusively through a hearing comprised of PayPal staff.  In 1992 a real court ruled that PayPal couldn't include that proviso, because it fraudulently convinced Paypal users that they had no access to real courts as a result.  Last I checked a few months ago, the proviso was still in PayPal's EULA despite the court ruling.

You have a strong case, and PayPal has left itself wide open in its flagrantly abusive practices.  You might come out of this financially ahead given punitive damages, and what's more a lawsuit against PayPal would be effective material for a press release.  News coverage would certainly be free advertising, and in this case such a venture would actually make it advertising that paid you instead.

Submitted for your consideration.  Be well.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: B!0HaZard on May 01, 2011, 12:56:25 AM
I basically live by OCN, but I know those mods, and if one of them tipped PayPal off I'm gonna be really mad. There was a huge thread about it with like 3000 replies on OCN.
What would OCN tell Paypal that would make them shut down CoinPal? Bitcoins are goods traded by users for money and other services, so I don't see what Paypal can really do about this business. I'm don't know a lot about how the financial world works, but Bitcoins aren't "an actual currency", just virtual points that people buy/sell for real money.

PayPal, owned by eBay, is in the middle of their third class-action for defrauding customers and freezing accounts.

Regardless of whether or not the department that gave you permission to trade BitCoins was authorized to, you have their permission.  In commerce law, this is referred to as "principal and agent".  The agent (say a teller at a bank) is understood to represent the principal (the bank manager) and vice-versa.  If they misrepresent, it's the bank that must keep its word to you - not you that must be inconvenienced by the bank.  Same goes here.

As for "This limitation cannot be appealed", they mean within PayPal's internal faux-court.  In PayPal's EULA, there is a proviso which requires you to agree that, in the event of a dispute with PayPal, you agree to forfeit your access to a real court and must instead seek remedy exclusively through a hearing comprised of PayPal staff.  In 1992 a real court ruled that PayPal couldn't include that proviso, because it fraudulently convinced Paypal users that they had no access to real courts as a result.  Last I checked a few months ago, the proviso was still in PayPal's EULA despite the court ruling.

You have a strong case, and PayPal has left itself wide open in its flagrantly abusive practices.  You might come out of this financially ahead given punitive damages, and what's more a lawsuit against PayPal would be effective material for a press release.  News coverage would certainly be free advertising, and in this case such a venture would actually make it advertising that paid you instead.

Submitted for your consideration.  Be well.

This might be the greatest post I've ever read.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Satori on May 01, 2011, 12:59:09 AM
A solution would be to create a website, perhaps in Drupal, that would automatically purchase BitCoins from users who wanted to sell.  Users would log in, put their BitCoins up for sale, and the site would draw from a credit line to purchase them at current valuation.  Thus you could put cash in at one end, and accumulate a trickle of BitCoins as they came out of your site.  Your site could then also sell them to users by accepting credit card orders.  This would stimulate BitCoin usage by allowing users entry into the economy.  A minor transaction fee would probably be in order, to cover the hosting costs and credit card processing fees.

People would essentially be buying and selling with your site itself, and unlike a person it would be constantly available and always-on.

[EDIT: I recently compiled a comparison list (http://hubpages.com/hub/Online-Credit-Card-Payment-Gateways-Comparison-Shopping) of the top online credit card payment processing gateways, which you may find useful.]

Be well.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: DD on May 01, 2011, 01:01:21 AM
Oh man, I just started getting into this. Coincard is by far the simplest, easiest and safest way that i've searched for to convert to paypal USD. It's so damn easy. I depend on you guys so much for BTC -> Paypal!!!


I dont know what/where to go now..
this sucks =(


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: PabloW on May 01, 2011, 01:02:09 AM
PayPal, owned by eBay, is in the middle of their third class-action for defrauding customers and freezing accounts.

Regardless of whether or not the department that gave you permission to trade BitCoins was authorized to, you have their permission.  In commerce law, this is referred to as "principal and agent".  The agent (say a teller at a bank) is understood to represent the principal (the bank manager) and vice-versa.  If they misrepresent, it's the bank that must keep its word to you - not you that must be inconvenienced by the bank.  Same goes here.

As for "This limitation cannot be appealed", they mean within PayPal's internal faux-court.  In PayPal's EULA, there is a proviso which requires you to agree that, in the event of a dispute with PayPal, you agree to forfeit your access to a real court and must instead seek remedy exclusively through a hearing comprised of PayPal staff.  In 1992 a real court ruled that PayPal couldn't include that proviso, because it fraudulently convinced Paypal users that they had no access to real courts as a result.  Last I checked a few months ago, the proviso was still in PayPal's EULA despite the court ruling.

You have a strong case, and PayPal has left itself wide open in its flagrantly abusive practices.  You might come out of this financially ahead given punitive damages, and what's more a lawsuit against PayPal would be effective material for a press release.  News coverage would certainly be free advertising, and in this case such a venture would actually make it advertising that paid you instead.

Submitted for your consideration.  Be well.

This is VERY VERY interesting information. Ill be waiting for ndrix to respond, hopefully soon.
Also press free advertising would easily help bitcoin to spread out to the world :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: frycicle on May 01, 2011, 01:05:29 AM
Try Amazon Payments. It is almost the same as Paypal nad most people have Amazon accounts.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: RTJakarta on May 01, 2011, 01:22:29 AM
Just reason number #9,001 why PayPal is an awful establishment. Ugh. They've had an account of mine frozen for about 6 months now.

Which wouldn't be that bad if I didn't have a few thousand in my account. Idiots.  :-\


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Satori on May 01, 2011, 01:42:10 AM
No way with such a low fraud rate that PayPal just suddenly decided to cut you off. I'll bet good bitcoins that somebody (i.e. the admins at overclock.net) tipped them off.

Actually, PayPal does this with its merchants systematically.

The frozen funds all get pooled, and PayPal earns interest off the cash while the funds remain frozen.  So they have a certain motivation to freeze accounts, then require their users to justify their existence with all sorts of paperwork they never mentioned upon sign-up.  For instance, a utility bill that must be in your name.  Not all of us have that.

In short, they're not happy until you're not happy.

The primary reason people use them as the standard is because they heard about PayPal through the mainstream media outlets.  Those media outlets are essentially owned by the same few megacorporations, so what they hype vias the media determines what the majority of people use - until people can discover a better alternative.  Thus sites like Facebook and Google, both the bastard offspring of C.I.A.-based investment firm In-Q-Tel, have become what the mainstream use.  Never mind that they work closely with the Information Awareness Office, which actively compiles data on users and tries to keep it all cross-referenced in its own databases for easy domestic snooping of citizens.  It's the federal government's approach to using commercial entities to get around the Fourth Amendment safeguard against unreasonable search and seizure, with a fair amount of tycooning and market manipulation thrown in for good measure.

Well, I say "good" measure...   ::)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: demonofelru on May 01, 2011, 01:45:27 AM
No way with such a low fraud rate that PayPal just suddenly decided to cut you off. I'll bet good bitcoins that somebody (i.e. the admins at overclock.net) tipped them off.

Actually, PayPal does this with its merchants systematically.

The frozen funds all get pooled, and PayPal earns interest off the cash while the funds remain frozen.  So they have a certain motivation to freeze accounts, then require their users to justify their existence with all sorts of paperwork they never mentioned upon sign-up.  For instance, a utility bill that must be in your name.  Not all of us have that.

In short, they're not happy until you're not happy.

The primary reason people use them as the standard is because they heard about PayPal through the mainstream media outlets.  Those are essentially owned by the same few megacorporations, so what they hype determines what the majority of people use - until they can hear of a better alternative.  Thus sites like Facebook and Google, both the bastard offspring of C.I.A.-based investment firm In-Q-Tel, have become what the mainstream use.  Never mind that they work closely with the Information Awareness Office, which actively compiles data on users and tries to keep it all cross-referenced in its own databases for easy domestic snooping of citizens.  It's the federal government's approach to using commercial entities to get around the Fourth Amendment safeguard against unreasonable search and seizure, with a fair amount of tycooning and market manipulation thrown in for good measure.

Well, I say "good" measure...   ::)

QFT! That's why I don't use I'm out big money because a buyer said I shipped them a broken computer they shipped me back random pieces of wood.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: tomcollins on May 01, 2011, 01:49:51 AM
Just reason number #9,001 why PayPal is an awful establishment. Ugh. They've had an account of mine frozen for about 6 months now.

Which wouldn't be that bad if I didn't have a few thousand in my account. Idiots.  :-\

PayPal was founded with such noble intentions.  It's a shame such assclowns are now in charge.

I have a feeling it will only get harder and harder to purchase/sell Bitcoins, the fees will rise as the risk level rises, and they drown the currency.  I am more committed than ever to make this work, though.  This mean WAR!


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: RTJakarta on May 01, 2011, 01:52:20 AM
No way with such a low fraud rate that PayPal just suddenly decided to cut you off. I'll bet good bitcoins that somebody (i.e. the admins at overclock.net) tipped them off.

Actually, PayPal does this with its merchants systematically.

The frozen funds all get pooled, and PayPal earns interest off the cash while the funds remain frozen.  So they have a certain motivation to freeze accounts, then require their users to justify their existence with all sorts of paperwork they never mentioned upon sign-up.  For instance, a utility bill that must be in your name.  Not all of us have that.

Exactly. God. Then I'm sure when I have utilities in my name, I'll be asked to scan copy of my 4th grade report card...


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on May 01, 2011, 02:10:54 AM
They are scared. It means we are winning.

I hope it goes well for you mndrix.



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: tomcollins on May 01, 2011, 02:13:10 AM
They are scared. It means we are winning.

I hope it goes well for you mndrix.



It depends what they are scared of.  They have to avoid government scrutiny as well, and they have a lot on the line to lose if they piss off the government.  So it's not *entirely* their fault they suck.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: shivansps on May 01, 2011, 02:22:39 AM
mmmmm what about using some system like, Payoneer instead of paypal?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: kiba on May 01, 2011, 02:24:19 AM
Bitcoin is not the natural enemy of Paypal.

They just decide to be assholes a long time ago and end up making lot of enemies.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Satori on May 01, 2011, 02:29:14 AM

The frozen funds all get pooled, and PayPal earns interest off the cash while the funds remain frozen.  So they have a certain motivation to freeze accounts, then require their users to justify their existence with all sorts of paperwork they never mentioned upon sign-up.  For instance, a utility bill that must be in your name.  Not all of us have that.


Here's a thought.  What about a site which accepted credit card payments from users who sought to purchase BitCoins, and then bought BitCoins when other users sold them to the site?  It could then transfer its BitCoins to users who'd already paid, on a first-come, first-served basis.

You'd be enabling people to acquire BitCoins with cash.  You'd be earning interest off the cash in the meantime.  The availability of BitCoins would help the system thrive.  The steady demand for BitCoins would make them even more valuable, and cause an increase in their valuation.  BitCoins at once become more accessible to people, and yet also worth more.

You'd have legitimate interest earned off the funds, much as PayPal does but in this case legitimately, to fund the server costs and credit card processing.  The site would be providing quite a service to the BitCoin community, and potentially gleaning interest above costs, without having to charge users for the convenience.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: proudhon on May 01, 2011, 02:38:39 AM
Today PayPal called to say they were freezing my account because they consider Bitcoins an "ecurrency".  I told them that they had given me permission on two separate occasions to sell Bitcoins.  They responded, "that department isn't authorized to make those decisions."  The official statement in my account says "This limitation cannot be appealed."

Well, on the bright side, now it's official, bitcoin is a currency.  Next up, Amazon.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: xf2_org on May 01, 2011, 02:39:59 AM
"First they ignore you, then they laugh at you, then they fight you, then you win." - Mahatma Ghandi

Eventually PayPal will support BTC as a currency, just like they support USD or EUR.  Then we win.  :)



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mewantsbitcoins on May 01, 2011, 02:44:17 AM
Paypal has just generated lots of publicity for it's arch enemy bitcoin and it is even not bad publicity. They dig their own grave.


They dug their grave along with governments when they cut off Wikileaks funds. Now it's just the last nails into the coffin


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: ADgordo on May 01, 2011, 02:46:35 AM
Amazon Payments seems like a good plan


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: kiba on May 01, 2011, 02:47:27 AM

This highlight the need for peer to peer network of bitcoin exchangers.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: proudhon on May 01, 2011, 02:51:25 AM
Paypal has just generated lots of publicity for it's arch enemy bitcoin and it is even not bad publicity. They dig their own grave.


They dug their grave along with governments when they cut off Wikileaks funds. Now it's just the last nails into the coffin

I'm a little worried that the anons will catch wind of this little scuffle and initiate an all out war with PayPal, which could end up bringing negative press to bitcoin.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: shivansps on May 01, 2011, 02:55:06 AM
The big problem is non-US Users... for example i actually NEED the money on PP, so i can transfer it to Payoneer card so i can go to the ATM...


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: TurboK on May 01, 2011, 02:56:19 AM
Sucks that this had to go, it was so simple to use. I never could get the hang of the ridiculous chain you needed from mtgox to libertyreserve to who-knows-what.

mtgox can do direct bank transfers in EUR though, can't it? I suppose that would be even simpler if it works, since it cuts off paypal as the middleman.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: DD on May 01, 2011, 02:58:46 AM
Sucks that this had to go, it was so simple to use. I never could get the hang of the ridiculous chain you needed from mtgox to libertyreserve to who-knows-what.

I couldn't agree more with you on that. Although mt.gox has been easy to sell bitcoins, its extremly hard for me to understand how to transfer the USD to my bank lol.

Also, anyone having a problem getting mt.gox to open?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: TurboK on May 01, 2011, 03:07:08 AM
No, it's down here as well. I wish I could see current buy/sell rate, see if it broke 4.0 or if it went back under 3 now.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: TheShoura on May 01, 2011, 03:08:19 AM
Google checkout???

Why has Google Checkout not been suggested? Its the same damn thing as Paypal... isn't Google involved in BTC???


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mjsbuddha on May 01, 2011, 03:16:56 AM
Google checkout???

Why has Google Checkout not been suggested? Its the same damn thing as Paypal... isn't Google involved in BTC???

agreed


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: xf2_org on May 01, 2011, 03:19:31 AM
Google checkout???

Why has Google Checkout not been suggested? Its the same damn thing as Paypal... isn't Google involved in BTC???

Search the forums.  Google Checkout has already rejected bitcoin.



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mjsbuddha on May 01, 2011, 03:24:02 AM
seriously, can someone not just sell "lollypops" at current exchange rates?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: TheShoura on May 01, 2011, 03:36:37 AM
Google checkout???

Why has Google Checkout not been suggested? Its the same damn thing as Paypal... isn't Google involved in BTC???

Search the forums.  Google Checkout has already rejected bitcoin.



Searched and found it. Thanks
For the record, amazon payments also is out of the question


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on May 01, 2011, 03:41:31 AM
Thanks to those who have expressed appreciation for CoinPal and CoinCard.  I'll consider all the recommendations made here about PayPal alternatives, etc.  I won't pursue a lawsuit against PayPal.  Whatever publicity might be had for Bitcoin, I won't obtain it that way.

I was reminded of PayPal's blog post about Bitcoin (https://www.x.com/community/ppx/devzone/blog/2011/02/12/fyi-virtual-currency-bitcoin-reaches-dollar-parity).  It was two days later that PayPal contacted me and suggested ways to improve CoinPal so that I avoided chargebacks and reduced PayPal fees.  I would be intrigued to hear the board room discussions at PayPal that happened then and the ones that have happened this week.  Somewhere along the way, they lost courage in this experiment.

I agree with xf2_org's sentiment.  Someday, when people are depositing Bitcoins into their PayPal accounts, we'll look back at this time and chuckle.  It'll be a fun ride.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: njloof on May 01, 2011, 03:45:23 AM
I'm more than happy to say nasty things about PayPal on general principles, but I wonder if they see bitcoin as a potential threat to their business.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: sherbetlemon on May 01, 2011, 03:45:53 AM
I was using coinpal and gutted that it is frozen... I would try Alertpay they are used by some adult services etc. and seem to deal more with fringe type business also there is Moneybookers, but think this is mainly Europe, suits me as I'm in the UK


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Littleshop on May 01, 2011, 03:57:38 AM
Thanks to those who have expressed appreciation for CoinPal and CoinCard.  I'll consider all the recommendations made here about PayPal alternatives, etc.  I won't pursue a lawsuit against PayPal.  Whatever publicity might be had for Bitcoin, I won't obtain it that way.


Why don't you allow for sending checks or ACH for people in the USA.  You would make more profit due to no paypal fees on your end.  Sure, not everyone wants that, but it would work for some.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Satori on May 01, 2011, 04:07:50 AM
I'm more than happy to say nasty things about PayPal on general principles, but I wonder if they see bitcoin as a potential threat to their business.


In that context, PayPal's attempted rejection of BitCoin makes an even stronger case against them.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Satori on May 01, 2011, 04:12:08 AM
With U.S. maintaining even stricter regulations than most countries, I wonder if overseas currency exchanges might be easier to implement.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Meni Rosenfeld on May 01, 2011, 04:30:33 AM
This is absolutely dreadful! Especially wrt CoinCard. How are we supposed to convince mainstream shops and organizations to accept bitcoins now?

mndrix, thank you for making available this wonderful service while it lasted.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on May 01, 2011, 04:44:30 AM
I think alertpay has a tos section about not using it for ecurrency exchange.



What if we came up with a code word for bitcoins and called then carrots....

Would paypal stop you selling carrots at carrotpal ?
 :D




Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: JJG on May 01, 2011, 05:15:04 AM
I think gift cards to major e-tailers is the way to go. Especially for e-tailers who allow you to stack as many gift cards as you have.

I'd trade bitcoin for Newegg credit in a heartbeat.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Miner-TE on May 01, 2011, 05:15:45 AM
I'm pissed  :(

Let us know what we can do to assist.  


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: marcus_of_augustus on May 01, 2011, 05:56:15 AM

So it begins, the first shot is fired in the bitcoin wars.

PayPal can go pound sand ... they have shown their true colours ... kind of knew that after the wikileaks fiasco.

So much for hip new internet business PayPal are just suck up toadies to the corrupted old money power elite establishment ... losers.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: AaronM on May 01, 2011, 06:31:04 AM
PayPal, owned by eBay, is in the middle of their third class-action for defrauding customers and freezing accounts.

Regardless of whether or not the department that gave you permission to trade BitCoins was authorized to, you have their permission.  In commerce law, this is referred to as "principal and agent".  The agent (say a teller at a bank) is understood to represent the principal (the bank manager) and vice-versa.  If they misrepresent, it's the bank that must keep its word to you - not you that must be inconvenienced by the bank.  Same goes here.

As for "This limitation cannot be appealed", they mean within PayPal's internal faux-court.  In PayPal's EULA, there is a proviso which requires you to agree that, in the event of a dispute with PayPal, you agree to forfeit your access to a real court and must instead seek remedy exclusively through a hearing comprised of PayPal staff.  In 1992 a real court ruled that PayPal couldn't include that proviso, because it fraudulently convinced Paypal users that they had no access to real courts as a result.  Last I checked a few months ago, the proviso was still in PayPal's EULA despite the court ruling.

You have a strong case, and PayPal has left itself wide open in its flagrantly abusive practices.  You might come out of this financially ahead given punitive damages, and what's more a lawsuit against PayPal would be effective material for a press release.  News coverage would certainly be free advertising, and in this case such a venture would actually make it advertising that paid you instead.

Submitted for your consideration.  Be well.

Please do this! You will make me a happy man. :D
PayPal Class-Action Lawsuit information (http://www.freedweiss.com/PayPal-Holding-Money.shtml)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: ottodv on May 01, 2011, 06:33:38 AM
Moneybookers might be a solution, it functions much like paypal, it has an e-wallet and allows payment by credit card.
However they locked out Wikileaks months before Paypal did, so who knows how tolerant they would be of BitCoin?

Another possibility could be Click and Buy, http://clickandbuy.com/ , not looked at them in detail, but I used them once to pay something by credit card.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: n4l3hp on May 01, 2011, 06:42:56 AM
Got this "Loadavg too high due to ddos, please retry in ~5 min" when I tried MtGox.   :(


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mewantsbitcoins on May 01, 2011, 06:44:16 AM
mndrix, I just realized that you and your site built up such a good reputation that you could try taking Credit/Debit card payments. As recent events show, community support is everything and you've earned every bit we can provide.

Please don't abandon this project


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Ricochet on May 01, 2011, 07:04:08 AM
I'd vote against AlertPay, though I will openly admit that this is because they cut off funds to a site I support for (what I consider to be) stupid reasons, and they didn't allow the site-owner to withdraw the funds in his account after they cut him off.  So I'm possibly biased.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: shivansps on May 01, 2011, 07:56:26 AM
the thing is, there are several countrys that now they cant do anything...

for example in my country if someone wanted to make some money and buy a better mining rig, the only way was using Payoneer card... with by itselft is a very indirect way, the only way to load a payoneer card is trough PP, so there is nothing now.

After the scam with the "liberty dollars", i dubt any company will accept bitcoin marketing.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: SgtSpike on May 01, 2011, 08:38:39 AM
This will make small BTC --> USD conversions extremely difficult.  :(  I need the money to pay off loans, not to buy things from retailers!  Gift cards do me no good.  :(


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: fellowtraveler on May 01, 2011, 08:42:48 AM

The effect of cutting Bitcoin exchangers off of Paypal: 

1) Users will still trade Bitcoins for Dollars.

2) But now they will be individually paypalling those dollars to each other, instead of using a central service.

3) Seems to me that if you have a supercomputer, and you have access to Amazon's transactions, and you have access to the block chain, then this move makes it suddenly much easier to associate block chain transactions with paypal transactions.

4) Basically if this came from higher up, the purpose was to make the block chain traceable.

5) Anyone receiving dollars in Paypal has a verified identity, taxpayer ID, bank account, etc.


I think it's time for Bitcoin aficionados to consider anonymity layers...


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: deadlizard on May 01, 2011, 08:45:08 AM
otc needs a web interface. irc isn't for everyone  :P


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: TiagoTiago on May 01, 2011, 08:54:25 AM
I'd vote against AlertPay, though I will openly admit that this is because they cut off funds to a site I support for (what I consider to be) stupid reasons, and they didn't allow the site-owner to withdraw the funds in his account after they cut him off.  So I'm possibly biased.
+1


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: B!0HaZard on May 01, 2011, 08:57:11 AM
How can Europeans get their BTC converted now that CoinCard is down? I'm expecting to have 100 BTC by the end of May.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mahkul on May 01, 2011, 10:11:27 AM
otc needs a web interface. irc isn't for everyone  :P

BitMarket.eu is going to become one in a week or so, we have already spoken about that.

EDIT: Some major changes are being done to the website, including incorporation of the otc-ratings.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mahkul on May 01, 2011, 10:14:09 AM
@mndrix if you end up filing a lawsuit against Paypal I will be more than happy to toss a few thousands of BTC to support your case (or EUR should that be more useful).


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: joepie91 on May 01, 2011, 11:36:34 AM
Have you considered accepting Ukash/PaySafeCard/Wallie/other prepaid vouchers in exchange for bitcoins? These are anonymous already (in general) and at least in Europe you can easily buy them in physical stores, although I am not sure about the US.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: error on May 01, 2011, 11:39:40 AM
From the little I understand, I don't think mndrix's service can scale very well unless he can exchange in both directions.

Reloadable debit cards come to mind, though you have the problem of getting one into someone's hands.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: joepie91 on May 01, 2011, 11:48:13 AM
From the little I understand, I don't think mndrix's service can scale very well unless he can exchange in both directions.

Reloadable debit cards come to mind, though you have the problem of getting one into someone's hands.
Yes, but that would partly be solved by accepting Ukash/PSC/Wallie/Creditcard, and giving out gift cards for various different stores plus potentially VCCs.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Rabiesekorre on May 01, 2011, 12:51:08 PM
This really sux, this was my only way to sell bitcoins. I really hope you get coincard back up soon.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: JackSparrow on May 01, 2011, 01:05:47 PM
Do you still give OTC-Ratings?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: error on May 01, 2011, 01:15:52 PM
From the little I understand, I don't think mndrix's service can scale very well unless he can exchange in both directions.

Reloadable debit cards come to mind, though you have the problem of getting one into someone's hands.
Yes, but that would partly be solved by accepting Ukash/PSC/Wallie/Creditcard, and giving out gift cards for various different stores plus potentially VCCs.

I can't take a virtual card number to the grocery store.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Drifter on May 01, 2011, 01:50:50 PM
otc needs a web interface. irc isn't for everyone  :P

+1! I really wish this was possible. OTC could be a phenomenal market but they're cutting off a very large portion of internet users who do not know IRC well(90%+ of users).


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: m0mchil on May 01, 2011, 02:00:49 PM
But... PayPal seems to tolerate other currencies and exchanges. See Virwox (https://www.virwox.com/) for example. What are the differences compared to CoinPal?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: deadlizard on May 01, 2011, 02:07:31 PM
But... PayPal seems to tolerate other currencies and exchanges. See Virwox (https://www.virwox.com/) for example. What are the differences compared to CoinPal?
At VirWoX, you do not buy from us or sell to us
I wouldn't pretend to know PayPal's motivations but it looks more like an otc exchange.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Satori on May 01, 2011, 02:12:27 PM
From the little I understand, I don't think mndrix's service can scale very well unless he can exchange in both directions.

Reloadable debit cards come to mind, though you have the problem of getting one into someone's hands.

So what you'd need is some kind of ATM access.

There's probably a local credit union somewhere with an online presence willing to allow online bill pay to a BitCoin to USD exchange site.

Also, there are purely online banks now.  The cards they send work with ATMs.  The rest is done online.  Univest is one.

Green Dot cards are reloadable at 7-11s.  Wonder if they have an API that BitCoin site could use to accept Green Dot-loaded funds.

Someone out there will appreciate the new business that BitCoin can bring them.

[EDIT: If organizations have difficulty with the concept of BitCoin as rival currency, perhaps you would find it easier to describe it as a digital commodity.  When businesses like credit unions think of BitCoin as that can be bought and sold online, like groceries, the mental aversion is very likely to disappear.]


Be well,

- Satori


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: EvanR on May 01, 2011, 02:55:05 PM
For all the people who said that they can no longer get fiat money for BTC because they can only use paypal:

I'm currently advocating two services, alertpay and dwolla. Both of these are as easy to set up as paypal, differences follow.

Alertpay will eventually treat bitcoins like paypal does and shut you down. However they haven't reacted yet as far as I know. So this is a good stepping stone in the river of opposition. Also has saner international currency handling than paypal.

Dwolla will eventually treat bitcoins like paypal does and shut you down. However the community opinion is they will take much longer to do that. Dwolla also has lower fees. The downside is that it is American USD only, American bank accounts only.

I accept both of these now as payment, and at this stage it would be good for basically everyone to switch in order to avoid paypal.

We will re-evaluate once alertpay and dwolla attempt to bust bitcoins balls.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Boxeo on May 01, 2011, 02:59:58 PM
For all the people who said that they can no longer get fiat money for BTC because they can only use paypal:

I'm currently advocating two services, alertpay and dwolla. Both of these are as easy to set up as paypal, differences follow.

Could you let us know what your website is please or how to access your service. thanks!


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: EvanR on May 01, 2011, 03:36:06 PM
#bitcoin-otc ;)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: deadlizard on May 01, 2011, 03:42:15 PM
Alertpay
EPIC FEES. $5 for a bank transfer?
Paypal didn't charge a fee to deposit or withdraw
#bitcoin-otc ;)
Just registered, but I stand by my earlier comment


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: EvanR on May 01, 2011, 03:49:30 PM
$5? I didn't pay that much when I did a test deposit. I guess it depends on your bank. And your country. I deposited for free.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Ulysses on May 01, 2011, 04:12:48 PM
mndrix, can you

1) Apply for merchant account with your bank (and implement the same security paypal uses - charging the small amount and then entering the confirmation code). Plus if you add sms confirmation, i think you'll get a much lower than your current 1.5% chargeback rate. If you don't have time to program this, than i can help and you will handle only financial issues.
2) To send money in the reverse direction - use direct transfer to visa and mastercard. It works well outside US, and as far as i can see supported in US now too: http://www.ecommercez.net/featured/visa-now-you-can-direct-money-transfer-between-credit-card/

I think you will need to apply for money transfer license, but i think it worth it. I think community will be able to raise fund for license cost.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: deadlizard on May 01, 2011, 04:16:12 PM
Plus if you add sms confirmation ...
people without phones can't use it (like me :( )


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Ulysses on May 01, 2011, 04:30:37 PM
people without phones can't use it (like me :( )

You probably don't have a card too and can't use it anyway?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: TiagoTiago on May 01, 2011, 04:32:22 PM
Can you use Google Voice for the sms confirmation thingy?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: deadlizard on May 01, 2011, 04:36:23 PM
people without phones can't use it (like me :( )

You probably don't have a card too and can't use it anyway?
Just because I don't have any use for a phone doesn't mean I can't get a visa pre-paid card if it was useful.  ::)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: pera on May 01, 2011, 04:50:24 PM
why paypal freezes everything? :S

Plus if you add sms confirmation ...
people without phones can't use it (like me :( )
and me..


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: trentzb on May 01, 2011, 05:17:18 PM
Regardless of whether or not the department that gave you permission to trade BitCoins was authorized to, you have their permission.  In commerce law, this is referred to as "principal and agent".  The agent (say a teller at a bank) is understood to represent the principal (the bank manager) and vice-versa.  If they misrepresent, it's the bank that must keep its word to you - not you that must be inconvenienced by the bank.  Same goes here.
This is only applicable and useful if you have evidence to support such permission. Satori is absolutely right that the agent(s) represent the entity and thus if they misrepresent the entity the entity is liable for such misrepresentation. Without evidence of the misrepresentation it would be foolish to enter a court and attempt to hold the entity responsible. Always collect evidence when interacting with PayPal and similar companies. It is perfectly legal to record a telephone conversation with PayPal and many other companies without notifying them you are recording (in ALL US states) and such recording can be used as evidence in court.

In 1992 a real court ruled that PayPal couldn't include that proviso, because it fraudulently convinced Paypal users that they had no access to real courts as a result.  Last I checked a few months ago, the proviso was still in PayPal's EULA despite the court ruling.
Are you sure that was 1992? :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Fiyasko on May 01, 2011, 05:32:00 PM
otc needs a web interface. irc isn't for everyone  :P

I couldnt agree more, As far as i know i've got a PGP key but.. Well, Thats the extent of what i know about the IRC otc GPG/PGP key thing. Seriously.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: JackSparrow on May 01, 2011, 05:39:24 PM
I couldnt agree more, As far as i know i've got a PGP key but.. Well, Thats the extent of what i know about the IRC otc GPG/PGP key thing. Seriously.
Then learn to use it. Sending and receiving singed and encrypted messages is not big deal.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mewantsbitcoins on May 01, 2011, 06:25:30 PM
I couldnt agree more, As far as i know i've got a PGP key but.. Well, Thats the extent of what i know about the IRC otc GPG/PGP key thing. Seriously.
Then learn to use it. Sending and receiving singed and encrypted messages is not big deal.

What's more, it may prove very useful in the near future 


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Satori on May 01, 2011, 10:35:57 PM
Regardless of whether or not the department that gave you permission to trade BitCoins was authorized to, you have their permission.  In commerce law, this is referred to as "principal and agent".  The agent (say a teller at a bank) is understood to represent the principal (the bank manager) and vice-versa.  If they misrepresent, it's the bank that must keep its word to you - not you that must be inconvenienced by the bank.  Same goes here.
This is only applicable and useful if you have evidence to support such permission. Satori is absolutely right that the agent(s) represent the entity and thus if they misrepresent the entity the entity is liable for such misrepresentation. Without evidence of the misrepresentation it would be foolish to enter a court and attempt to hold the entity responsible. Always collect evidence when interacting with PayPal and similar companies. It is perfectly legal to record a telephone conversation with PayPal and many other companies without notifying them you are recording (in ALL US states) and such recording can be used as evidence in court.

In 1992 a real court ruled that PayPal couldn't include that proviso, because it fraudulently convinced Paypal users that they had no access to real courts as a result.  Last I checked a few months ago, the proviso was still in PayPal's EULA despite the court ruling.
Are you sure that was 1992? :)


You're correct of course, it was 2002 (http://itlaw.wikia.com/wiki/Comb_v._PayPal).

For the record, our modern chancery courts aren't "real" courts within the Union either.  But they did manage to supplant our common law courts over the last couple hundred years.  Interestingly the court ruled against PayPal essentially for seeking to do to its customers what the government had already been doing to its citizenry.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: kblessinggr on May 02, 2011, 12:47:14 AM
Alertpay
EPIC FEES. $5 for a bank transfer?
Paypal didn't charge a fee to deposit or withdraw
#bitcoin-otc ;)
Just registered, but I stand by my earlier comment

It was only 50 cents for me to to do a bank transfer. The only more expensive bank option was a wire for 15$.

The only $5 option I saw was to fund a credit or debit card as a means of withdrawl.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: opticbit on May 02, 2011, 03:08:33 AM
Can you use Google Voice for the sms confirmation thingy?

yes, I have a google voice # that I used on coinpal.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: VillageChump on May 02, 2011, 05:38:03 AM
I really hate Paypal!  >:( Thanks for your help ndrix.  :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Kick on May 02, 2011, 07:50:00 AM
havent had the time, but how about amazon payments?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: n4l3hp on May 02, 2011, 08:09:28 AM
There are many countries not supported by Amazon.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: colossus on May 02, 2011, 09:10:29 AM
How about switching to http://www.paymate.com

they are in direct competition with paypal and might welcome the custom.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Third Way on May 02, 2011, 11:17:22 AM
How about switching to http://www.paymate.com

they are in direct competition with paypal and might welcome the custom.

Good idea. After the PayPal fiasco,  It would also be prudent to work out all details beforehand so as to not face some form of similar consequence


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: BitcoinBonus on May 02, 2011, 11:31:12 AM
I'd suggest people use Venmo (https://venmo.com/i/darrell-duane.cFL.pdq).
This payment system has no transaction fees for the consumer, it is funded when people use it with merchants.  
Bitcoin Bonus provides 50 cents USD worth of Bitcoin when you sign up for it via the link above and fully complete your Venmo profile, and then Claim (https://bitcoinbonus.com/claim) your Venmo Bonus (https://bitcoinbonus.com/venmo) by entering in your Venmo username.   (You'll also get a dollar from Venmo).

You also can go social with Venmo and optionally let other people know that you're buying bitcoin, helping promote it, but you can keep your transactions private as well.  Here are some more details from the Venmo website:

Venmo: The story.
Venmo was built by two friends that found it incredibly frustrating to pay each other and their friends back. I'll get you, you get me back hardly ever works out, and eventually the missing cash starts to add up. Venmo was built to solve this problem by allowing anyone with a phone to settle mini debts between friends in person, securely and instantly. But that's not all. Venmo is designed to be social and fun, just like the times you have when you're spending money with your friends. You can share your payments, keep track of the places you're spending money, and leave personal notes with every payment you make. We think of Venmo as the best payment service for friends.
What is Venmo?
Venmo is an iPhone, Android and Blackberry App that lots of people use to pay back their friends. It's completely FREE (no transaction fees) to use, and it makes splitting the bill at a restaurant between a group of friends very easy, and kind of fun. There are plenty of other ways to use Venmo, for example paying your roommates back for living expenses like rent, utilities and groceries, or getting your co-workers back for lunch runs or coffee runs. It's even useful to send friends birthday cash, or other cash gifts instead of writing checks. Whenever a friend owes you money, just use Venmo.
How big is Venmo?
Tens of thousands of people in America use Venmo, and we've processed millions of dollars in transaction volume between friends. And, we're still in Private Beta. That's awesome, right?
What are some ways to use Venmo?
The most frequent use case is splitting up a lunch or dinner bill at a restaurant with 2 or more friends. We've all been there before, one person gets the bill and has to figure out how to collect the money from everyone. Venmo saves the day in this situation. Other ways people use Venmo are to settle living expenses with roommates like rent, utilities or cable; to get money for concert tickets and trips; to pay co-workers back for coffee or lunch runs. Basically, whenever someone owes you money, or you owe someone money, just settle it up with Venmo.
How do I pay someone, where does the money come from?
It comes from a credit card or a debit card that you link to your phone number. Once you signup, we walk you through the whole process, and it only takes a couple minutes.
If I receive money, how does it get into my personal Bank Account?
That's easy. Just setup Direct Deposit when you signup, and we automatically transfer all the money you receive on Venmo into your bank account every two weeks. You can always cash out manually if you'd like, but rolling deposits make it really convenient for you to get your money. To setup Direct Deposit, you need to know your bank's routing number and account number (you can find it on a check from your bank or in your online banking portal), that's all! We designed it this way so you don't have to worry about maintaining an extra balance somewhere.
What banks does Venmo work with?
We've partnered up with all the major banks in the country.
Is Venmo Secure?
Absolutely. Venmo uses Bank Grade Security and 256-bit SSL to encrypt and transmit all of your data. Venmo is also certified by Verisign, the leading SSL provider in world.
Venmo is certified by Verisign
What makes Venmo better than other payment services?
For starters, we're completely free to use and there are no transaction fees when you make a payment.

There are lots of other reasons too:

    * Direct Deposit. You can setup direct deposit and we'll automatically transfer any money you receive on Venmo into your bank account every two weeks. You're free with your cash, and we're not trying to earn interest on the float.
    * It's Social. Venmo is the first social payments service. On Venmo, you can share select payments with your friends on Venmo, Facebook, Twitter, and Foursquare as a way of telling them what you're up to. This is a fun way to engage with Venmo, and you get to leave comments on shared payments. Don't worry, only friends you explicitly accept can see the payments you share.
    * Realtime Statistics. We give you detailed statistics after every payment you make. This keeps you informed about how much you're spending with your friends, and if you add your location to a payment, we tell you how many times you've visited that place and how much you're spending there.
    * Your Phone Comes First. You can do everything on your phone. That includes signing up, adding your credit card and making your first payment. This makes it so easy to get your friends to use Venmo with you, especially when your hanging out with each other!

How much does it cost to use Venmo?
It's completely free to use Venmo. There are no fees to signup, and there are no transaction fees.
If it's free to use, how does Venmo make money?
While Venmo does not work with any service providers, or businesses right now, it has plans to work with them in the future. There will be standard transaction fees charged to any business that uses Venmo. This will allow Venmo to remain free for friends to use with each other.
How do I get an invite to Venmo?
Just join our waiting list, or ask a friend that's on there to invite you. We're constantly sending out invitations to new users.
I have more questions
Not a problem! Just use our contact form to get in touch with us, and we'll be happy to answer any of your questions.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: deadlizard on May 02, 2011, 11:39:23 AM
I'd suggest people use Venmo (https://venmo.com/i/darrell-duane.cFL.pdq).
sounds interesting. is it international?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: HostFat on May 02, 2011, 11:53:13 AM
It does't work here in Italy ...


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on May 02, 2011, 03:05:01 PM
Do you still give OTC-Ratings?

Yes.  Automated OTC ratings still work.  You can link your PGP key (http://coinpal.ndrix.com/user/gpg) to your CoinPal account to receive automated OTC ratings.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on May 02, 2011, 03:07:07 PM
Green Dot cards are reloadable at 7-11s.  Wonder if they have an API that BitCoin site could use to accept Green Dot-loaded funds.

As far as I can tell, Green Dot doesn't have a public API for accepting payment.  I've contacted them several times about selling Bitcoins for MoneyPak, but they never return my calls or emails.

Thank you to everyone for the suggestions about alternative payment methods.  I'll consider them all in the coming months.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Psychoactive on May 02, 2011, 03:10:21 PM
this sucks, coincard was one of the main reasons I love bitcoin
hopefully the accounts will be unfrozen soon.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: SgtSpike on May 02, 2011, 04:19:09 PM
+1 on Venmo, sounds awesome, and exactly what we need!


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: trentzb on May 02, 2011, 04:34:25 PM

3.1 - Sending Limits.
We may, at our discretion, impose limits on the amount of money you can send through our Service. If you have a Verified Account, we may increase your sending limits.

5.5 - Security Interest.
To secure your performance of this Agreement, you grant to Venmo a lien on and security interest in your Account.

6.2 - Withdrawal Limits.
Depending on the degree to which you have Verified your Account, we may limit you to withdrawing no more than $500.00 USD per month. In addition, we may delay withdrawals of large sums of money while we screen for risk.

Venmo might work ok for most as most people don't read User Agreements/Terms. Just click "Ok, I Accept" and proceed. Not uncommon terms though.



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: deadlizard on May 02, 2011, 04:50:07 PM
Do you still give OTC-Ratings?

Yes.  Automated OTC ratings still work.  You can link your PGP key (http://coinpal.ndrix.com/user/gpg) to your CoinPal account to receive automated OTC ratings.
Awesome thanks, it doesn't seem to accept coincard transactions but I'm happy to have an otc rating for the bitcoins I bought  ;D


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: SgtSpike on May 02, 2011, 04:51:30 PM

3.1 - Sending Limits.
We may, at our discretion, impose limits on the amount of money you can send through our Service. If you have a Verified Account, we may increase your sending limits.

5.5 - Security Interest.
To secure your performance of this Agreement, you grant to Venmo a lien on and security interest in your Account.

6.2 - Withdrawal Limits.
Depending on the degree to which you have Verified your Account, we may limit you to withdrawing no more than $500.00 USD per month. In addition, we may delay withdrawals of large sums of money while we screen for risk.

Venmo might work ok for most as most people don't read User Agreements/Terms. Just click "Ok, I Accept" and proceed. Not uncommon terms though.
Aww, that's a shame.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Satori on May 02, 2011, 05:21:17 PM
Suggestion to mndrix:

Rather than devote yourself to creating one site for everyone in the world, perhaps working on allowing people to create their own, using their own countries' available services, would provide something more robust for people.

If there were a Drupal module for BitCoin, anyone could start a site and the only difficulty would be finding a service that would be tolerant of BitCoin.

The result would be that the effort would become distributed.  Lots of sites where people could use, and purchase, BitCoin.

If the BitCoin community collaboratively funded a BitCoin module for Drupal, it would certainly get written.  All manner of BitCoin services would appear, limited only by the number of users who had approached ATM and card service providers and had arranged something with them.  People would become motivated to approach those services and seek to co-ordinate with them, because the result would be a site they owned that many BitCoin users would use.  Small transaction profits would add up.

For BitCoin users who are unfamiliar with Drupal: It's a free open-source system for developing websites.  Very easy to create them, and you essentially just select modules (like a BitCoin module) and configure them for your site.  No programming skills are needed.  Point and click.

BitCoin users who'd like to contribute to developing such a module will probably find this (http://groups.drupal.org/node/128389) useful.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: dacoinminster on May 02, 2011, 07:29:29 PM
If you are sad you can't buy bitcoins with your paypal account, you can always bid on my ebay auction. See the thread about it here: http://bitcointalk.org/index.php?topic=7072


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Darth Severus on May 03, 2011, 02:30:48 AM
Ah here is the discussion I hoped to start here:http://bitcointalk.org/index.php?topic=7069.msg103412#msg103412 (http://bitcointalk.org/index.php?topic=7069.msg103412#msg103412), I made a list with all options I know.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: schnak on May 03, 2011, 06:09:57 PM
https://squareup.com/ might be an option for accepting credit card payments.... the logistics of actually doing it are a little beyond what my brain is willing to handle at the moment but it presents a path that may be walkable.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: dacoinminster on May 03, 2011, 06:14:36 PM
https://squareup.com/ might be an option for accepting credit card payments....

Actually, I just realized that you can buy bitcoins with your credit card right now on the ebay auction I linked to, if you are in the U.S.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Longmarch on May 03, 2011, 06:19:31 PM
https://squareup.com/ might be an option for accepting credit card payments.... the logistics of actually doing it are a little beyond what my brain is willing to handle at the moment but it presents a path that may be walkable.

Squareup looks like it might be pretty awesome, just in general.  At first glance at least.

Wrt Bitcoin, it could be excellent for face-to-face transactions.  Swipe the card, wait for the money to clear, use your phone to send the bitcoins.  Though, I can't imagine how there would be a significant amount of business for someone selling bitcoin in the streets like that.



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: rabit on May 03, 2011, 06:23:50 PM
Liqpay is also a good credit card payment processing service.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: schnak on May 03, 2011, 06:29:32 PM
I use square for my tech support business, it works as a good platform / example of how the transaction process might be able to work with a bitcoin wallet app. Either it does not require that you have the card, you can manually key in the CC info as well. Square has no idea what was bought, your CC company won't see the transactions as bitcoin.

But then who is going to email their CC info? I would hope very few unless they were using onetime use cards.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Stephen Gornick on May 03, 2011, 06:35:43 PM
Squareup looks like it might be pretty awesome, just in general.  At first glance at least.

Wrt Bitcoin, it could be excellent for face-to-face transactions.  Swipe the card, wait for the money to clear, use your phone to send the bitcoins.  Though, I can't imagine how there would be a significant amount of business for someone selling bitcoin in the streets like that.

Since a chargeback against a credit card transaction is easy, I don't know that this would be an option for selling bitcoin "in the streets", though I suppose for friends and family it might be suitable.  2.75%.  No different than using PayPal, except that PayPal has the "personal / gift" option where no fees are incurred by the recipient.  AmEx's Serve is another credit-card + ACH based payment network similar to PayPal, and for now (through August, 2011) they charge no fees to either the sender or the recipient.  

Again, if you trust that you won't get charged back, these all work fine for person-to-person payment methods.

  http://squareup.com (http://squareup.com)
  http://gopayment.com (http://gopayment.com)
  http://serve.com (http://serve.com)
  http://dwolla.com (http://dwolla.com)

There's a good list of options being built here: http://bitcointalk.org/index.php?topic=7069.0

Exchanging in and out of bitcoins for each transaction certainly gets to be expensive though.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Intermediary on May 03, 2011, 11:54:40 PM
I'd just like to thank you for your support in helping me to get some of my first bitcoins.  The transactions were always swift and without hassle.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: marcus_of_augustus on May 04, 2011, 11:50:18 AM

The effect of cutting Bitcoin exchangers off of Paypal: 

1) Users will still trade Bitcoins for Dollars.

2) But now they will be individually paypalling those dollars to each other, instead of using a central service.

3) Seems to me that if you have a supercomputer, and you have access to Amazon's transactions, and you have access to the block chain, then this move makes it suddenly much easier to associate block chain transactions with paypal transactions.

4) Basically if this came from higher up, the purpose was to make the block chain traceable.

5) Anyone receiving dollars in Paypal has a verified identity, taxpayer ID, bank account, etc.


I think it's time for Bitcoin aficionados to consider anonymity layers...


I agree.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: chaostheory on May 05, 2011, 11:58:35 AM
So is there any way to actually get my money from bitcoin account? Actually I need this money asap and since I can't just 'start an order' I need to say I'm pretty screwed :(


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Meni Rosenfeld on May 05, 2011, 12:17:35 PM
So is there any way to actually get my money from bitcoin account? Actually I need this money asap and since I can't just 'start an order' I need to say I'm pretty screwed :(
What do you mean by "get my money from bitcoin account"? Do you have bitcoins you wish to send to someone?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: fetokun on May 05, 2011, 12:18:25 PM
Did you took a look at http://www.bitcoincashout.com/ ?

there is a bunch of others: https://en.bitcoin.it/wiki/Trade#Currency_exchange


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on May 05, 2011, 01:38:53 PM
So is there any way to actually get my money from bitcoin account? Actually I need this money asap and since I can't just 'start an order' I need to say I'm pretty screwed :(

How many do you have ?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: AntiVigilante on May 05, 2011, 07:11:02 PM
What a bunch of cunts!

What if this community decided to put their paypal accounts where their mouth is and gave you their own account to operate coinpal with. Is it even feasible? If so, how many frozen paypal accounts do you think it would take for them to reverse the policy?

PM me if you have ideas. Very serious about what you said, but a different strategy in mind.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: sverre on May 06, 2011, 09:45:14 AM
What about Western Union?

If I can use my W.U. online account to send money to someone in China, who then picks up in cash, they've clearly addressed the fraud charge-back thing (I think they ring you to confirm the transaction). Could CoinCard use WU instead?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: TiagoTiago on May 06, 2011, 10:02:12 AM
Don't they charge like 50 bucks for international transfers?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Meni Rosenfeld on May 06, 2011, 11:55:23 AM
Don't they charge like 50 bucks for international transfers?
Yes. (I was quoted $45 for transferring $1000 from Israel to US by MoneyGram). WU is the polar opposite of CoinCard (which was about instant, cheap, easy cashout for small to medium amounts). BitcoinExchange (http://bitcointalk.org/index.php?action=profile;u=9730) offers cashing out bitcoins for WU.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Darth Severus on May 06, 2011, 01:07:17 PM
Western Union is expensive, it makes sense for big transfers but not for small. There is also Moneygram as alternative.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: matteumayo on May 06, 2011, 03:25:08 PM
Glad to hear you might just send it using debit cards.

I think that'll be a better long-term plan, and most people already have one.

Please update us with any new info! I'll probably not sell btc for a while, but when I do hopefully you get this working again!  :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: BCEmporium on May 07, 2011, 12:51:24 AM
Actually we could create a "Western Union" ourselves, doing e-transfers by BTC and local by cash.
Eg:

A is in US and needs to send 1000 US to B that is in China
A contacts C who deals with BTC - OR - A himself has a 1000USD worth of BTC
A/C sends the BTC to the Chinese local operator who delivers the money to B.

Alternative paths would include:

A buying 1000USD worth of BTC from C and send them to the Chinese operator

A sending BTC to B who cashes them out with the Chinese operator

This would need just a bit of organization to put forth, along with ways to contact the needed operators.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Satori on May 07, 2011, 07:26:13 AM
Actually we could create a "Western Union" ourselves, doing e-transfers by BTC and local by cash.
Eg:

A is in US and needs to send 1000 US to B that is in China
A contacts C who deals with BTC - OR - A himself has a 1000USD worth of BTC
A/C sends the BTC to the Chinese local operator who delivers the money to B.

Alternative paths would include:

A buying 1000USD worth of BTC from C and send them to the Chinese operator

A sending BTC to B who cashes them out with the Chinese operator

This would need just a bit of organization to put forth, along with ways to contact the needed operators.

Nice.

A Google Map, with people adding labels for their location and contact info, would do it.

...and relinquish their anonymity in the process.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: LightRider on May 07, 2011, 08:21:55 AM
This is very similar to what www.Ubitex.org is doing.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: BCEmporium on May 07, 2011, 09:57:26 AM
Nice.

A Google Map, with people adding labels for their location and contact info, would do it.

...and relinquish their anonymity in the process.

I believe this would need a bit more organization than a simple distributed grid, specially due to liquidity. Imagine you sent some BTC, like $100 worth, to someone that's near an "independent exchanger" for him to cash it back, if that independent exchanger has no more than $10 with him the cashing out wouldn't be possible.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: TiagoTiago on May 07, 2011, 10:48:16 PM
Actually we could create a "Western Union" ourselves, doing e-transfers by BTC and local by cash.
Eg:

A is in US and needs to send 1000 US to B that is in China
A contacts C who deals with BTC - OR - A himself has a 1000USD worth of BTC
A/C sends the BTC to the Chinese local operator who delivers the money to B.

Alternative paths would include:

A buying 1000USD worth of BTC from C and send them to the Chinese operator

A sending BTC to B who cashes them out with the Chinese operator

This would need just a bit of organization to put forth, along with ways to contact the needed operators.

If we had local exchangers everywhere we wouldn't be having this discussion to start with


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: CaptainPicard on May 09, 2011, 06:06:44 PM
Here is a way to get around paypal's rules about selling currency.

You setup your website so the user can have a balance in BTC and USD (or whatever currency you like).
You use paypal to add money, or cash out from your sites USD balance.
Another way is to sell "tokens" or whatever you want to call the balance on your site.

Your site will then do conversion between BTC and USD using the balance in his account.
The difference here is that you are not selling currency (BTC) with paypal, you are selling tokens for your site.

You could also do it more practical, like sell email addresses (customer@yourdomain.com) for $50.
Then allow customer to sell the email address back to you for bitcoins.
It doesn't have to be emails, you could do this by selling anything that you can create one time and does not cost anything further to distribute, like software license keys etc...
Again here your not directly exchanging BTC for paypal.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: marcus_of_augustus on May 10, 2011, 03:14:08 AM
Here is a way to get around paypal's rules about selling currency.

You setup your website so the user can have a balance in BTC and USD (or whatever currency you like).
You use paypal to add money, or cash out from your sites USD balance.
Another way is to sell "tokens" or whatever you want to call the balance on your site.

Your site will then do conversion between BTC and USD using the balance in his account.
The difference here is that you are not selling currency (BTC) with paypal, you are selling tokens for your site.

You could also do it more practical, like sell email addresses (customer@yourdomain.com) for $50.
Then allow customer to sell the email address back to you for bitcoins.
It doesn't have to be emails, you could do this by selling anything that you can create one time and does not cost anything further to distribute, like software license keys etc...
Again here your not directly exchanging BTC for paypal.

Precisely right. Selling crypto-keys associated-with/linked-to/backed-by merchant held accounts is perfectly acceptable. Open Transactions already has all the machinery in place for merchants, exchangers to do all this, essentially issue their own keys/token/licences/currency (call it whatever you like at this point) Merchant Credits ... OT can do all this if someone wanted to just use the back-end library and API, then put a web interface on top of it.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: bitcoinTrader on May 10, 2011, 06:51:48 AM
mndrix,

Any update on the situation?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: bitcoinTrader on May 10, 2011, 07:21:18 AM
Here is a way to get around paypal's rules about selling currency.

You setup your website so the user can have a balance in BTC and USD (or whatever currency you like).
You use paypal to add money, or cash out from your sites USD balance.
Another way is to sell "tokens" or whatever you want to call the balance on your site.

Your site will then do conversion between BTC and USD using the balance in his account.
The difference here is that you are not selling currency (BTC) with paypal, you are selling tokens for your site.

You could also do it more practical, like sell email addresses (customer@yourdomain.com) for $50.
Then allow customer to sell the email address back to you for bitcoins.
It doesn't have to be emails, you could do this by selling anything that you can create one time and does not cost anything further to distribute, like software license keys etc...
Again here your not directly exchanging BTC for paypal.

Precisely right. Selling crypto-keys associated-with/linked-to/backed-by merchant held accounts is perfectly acceptable. Open Transactions already has all the machinery in place for merchants, exchangers to do all this, essentially issue their own keys/token/licences/currency (call it whatever you like at this point) Merchant Credits ... OT can do all this if someone wanted to just use the back-end library and API, then put a web interface on top of it.


If any1 wants to develop frontend for OT, I am available, since I am already doing it currently for the Money Changer OT client.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mewantsbitcoins on May 10, 2011, 08:21:41 AM
I heard a rumor that mndrix sent paypal a letter. In the envelope there was nothing except this picture:
http://i.imgur.com/cJJYp.jpg


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: AntiVigilante on May 10, 2011, 04:37:36 PM
I heard a rumor that mndrix sent paypal a letter. In the envelope there was nothing except this picture:
http://i.imgur.com/cJJYp.jpg

the man is a fighter


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on May 11, 2011, 04:14:11 AM
Any update on the situation?

Nothing much to report.  PayPal will keep my frozen funds for the next 6 months.  I won't try to persuade them otherwise.  I have obligations that will occupy my time for the next few months.  When those projects are done, I'll revisit CoinPal/CoinCard and decide how to proceed.

I'm still very interested in Bitcoin and plan to continue working on Bitcoin projects.  The Bitcoin ecosystem can change a lot in a few months.  When that time comes, I'll see what needs can be met and go from there.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: deadlizard on May 11, 2011, 08:51:33 AM
I won't try to persuade them otherwise. 
meanwhile they earn interest on your money.
I couldn't take that lying down, but then again losing that amount of money would break me.
To each his own. I'm glad you won't let this deter you from working on bitcoin projects in the future  ;D


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: EvanR on May 18, 2011, 02:44:07 PM
I got a call from phone number 402 935 7733. While answering I dropped the phone and it rebooted, cancelling the call. Research suggests it's paypal calling about unusual activity on my account. People reported questions like 'what kind of items are you selling' and 'do you intend to continue selling this kind of item.' I don't know what they would have asked me, but this is disturbing.

I have used coinpal once, and I trade with a lot of people on #bitcoin-otc. Something tells me I'm in the middle of a giant witch hunt. Nothing of mine has been frozen yet, and I am keeping zero balance in my account.

Reviewing the terms of service to determine if I have to answer those above questions. Not that it would stop them from freezing my account if I don't.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on May 18, 2011, 02:58:24 PM
I got a call from phone number 402 935 7733. While answering I dropped the phone and it rebooted, cancelling the call. Research suggests it's paypal calling about unusual activity on my account. People reported questions like 'what kind of items are you selling' and 'do you intend to continue selling this kind of item.' I don't know what they would have asked me, but this is disturbing.

I have used coinpal once, and I trade with a lot of people on #bitcoin-otc. Something tells me I'm in the middle of a giant witch hunt. Nothing of mine has been frozen yet, and I am keeping zero balance in my account.

Reviewing the terms of service to determine if I have to answer those above questions. Not that it would stop them from freezing my account if I don't.

This is almost stalkerish on the part of paypal. Ive heard a few bitcoiners so far  have been contacted by them personally at home and at their places of work. I suspect they have created some sort of data mining to link anyone using services like coinpal and other people who publicly accept paypal for btc.

Perhaps its time to collect data on paypal and note when they ring and what questions they ask. It needs some sort of strategy because a private company targetting individuals like this is unnacceptable. If this continues I suggest all the data be shown to the EFF. I can imagine the publicity if it got out what paypal is doing here.

 :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: trentzb on May 18, 2011, 03:15:35 PM
Perhaps its time to collect data on paypal and note when they ring and what questions they ask. It needs some sort of strategy because a private company targetting individuals like this is unnacceptable. If this continues I suggest all the data be shown to the EFF. I can imagine the publicity if it got out what paypal is doing here.

The next time someone gets a call from PayPal answer and tell them you can't talk right now but will be happy to call them back shortly, get a phone number to call them back at, return their call and record the conversation. You do NOT need to get their consent to record the call legally. The recording can also be presented in a court as evidence. This is legal in all states in the USA, I don't know about the legality in other countries.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: SgtSpike on May 18, 2011, 03:28:16 PM
Perhaps its time to collect data on paypal and note when they ring and what questions they ask. It needs some sort of strategy because a private company targetting individuals like this is unnacceptable. If this continues I suggest all the data be shown to the EFF. I can imagine the publicity if it got out what paypal is doing here.

The next time someone gets a call from PayPal answer and tell them you can't talk right now but will be happy to call them back shortly, get a phone number to call them back at, return their call and record the conversation. You do NOT need to get their consent to record the call legally. The recording can also be presented in a court as evidence. This is legal in all states in the USA, I don't know about the legality in other countries.
Uh... you may not need their consent, but in the majority of states, you DO need to notify them that you are recording the phone call.  It is inadmissible as evidence if you do not follow your local laws regarding this.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Anonymous on May 18, 2011, 03:29:48 PM
Perhaps its time to collect data on paypal and note when they ring and what questions they ask. It needs some sort of strategy because a private company targetting individuals like this is unnacceptable. If this continues I suggest all the data be shown to the EFF. I can imagine the publicity if it got out what paypal is doing here.

The next time someone gets a call from PayPal answer and tell them you can't talk right now but will be happy to call them back shortly, get a phone number to call them back at, return their call and record the conversation. You do NOT need to get their consent to record the call legally. The recording can also be presented in a court as evidence. This is legal in all states in the USA, I don't know about the legality in other countries.
Uh... you may not need their consent, but in the majority of states, you DO need to notify them that you are recording the phone call.  It is inadmissible as evidence if you do not follow your local laws regarding this.

Agreed. And record yourself telling them that.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: trentzb on May 18, 2011, 03:41:04 PM
Uh... you may not need their consent, but in the majority of states, you DO need to notify them that you are recording the phone call.  It is inadmissible as evidence if you do not follow your local laws regarding this.

Agreed. And record yourself telling them that.

Sorry, I misspoke. You do NOT need to notify them that you are recording the phone call. I just rang PayPal to double check at 1-402-935-2050 and verified. They give you their consent at the beginning of the call, no need to notify or ask for consent. Listen carefully to their consent and make your own determination whether it could be provided as evidence in court. I would have no hesitation recording a call (and have many times) and presenting it in court if necessary (no need as of yet).

You gave your consent by calling them, they gave their consent at the beginning of the call. This IMO satisfies 2-party consent.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: SgtSpike on May 18, 2011, 03:47:38 PM
Uh... you may not need their consent, but in the majority of states, you DO need to notify them that you are recording the phone call.  It is inadmissible as evidence if you do not follow your local laws regarding this.

Agreed. And record yourself telling them that.

Sorry, I misspoke. You do NOT need to notify them that you are recording the phone call. I just rang PayPal to double check at 1-402-935-2050 and verified. They give you their consent at the beginning of the call, no need to notify or ask for consent. Listen carefully to their consent and make your own determination whether it could be provided as evidence in court. I would have no hesitation recording a call (and have many times) and presenting it in court if necessary (no need as of yet).

You gave your consent by calling them, they gave their consent at the beginning of the call. This IMO satisfies 2-party consent.
Ah, I didn't realize they gave consent before you even asked for it.  :P  I would agree then, you shouldn't have to notify them of call recording if they explicitly state that it is ok for you to record their calls.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: BCEmporium on May 18, 2011, 06:30:42 PM
Not to alarm you, but some people also found some withdrawals from their Paypal-linked account/CC after receiving those calls.
Something like: PAYPAL 4029357733 SGP.

Rather keep an eye over your accounting for a while, just in case.

Paypal is really getting desperate with bitcoin, isn't it?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: EvanR on May 18, 2011, 06:50:53 PM
So it's a scam?

Or paypal is stealing peoples money??


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: SgtSpike on May 18, 2011, 07:42:16 PM
Withdrawing via Virwox/Second Life still seems to work ok.  I would imagine going the other way would be safe as well.  Paypal has been doing business with Second Life for a long time, so it is unlikely that you would raise any red flags going that route.

I think I will no longer do any sort of direct bitcoin <-> Paypal transactions though.  All of these accounts getting frozen is making me rather averse to the idea.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: BCEmporium on May 18, 2011, 09:12:04 PM
So it's a scam?

Or paypal is stealing peoples money??

Actually, according to the reports, it seams it's Paypal itself doing it. For "verification" (ripoff) purposes, I guess.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: dr-mosfet on May 18, 2011, 09:53:59 PM
Hi, I have been tiring to buy bitcoin with paypal and came across your site, and send Paypal a Email, asking if they allow buying bitcoin. the reply:
*************
I can assure you that there is no policy against the purchase of
BitCoins, however it is possible that BitCoin simply do not accept
payment through PayPal.
*************
The reply might mean that the front line that replys to this E-mails has no ideal what Bitcoin is?
if enough people sends them E-mail asking for Bitcoins, they might give it some weight in future decision.
I will attempt inform them of what a Bitcoin is.

By the way, sorry if some one posted a similar reply, a lot of people have a lot to say about this, and i can't read it all.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: SgtSpike on May 18, 2011, 10:01:09 PM
Hi, I have been tiring to buy bitcoin with paypal and came across your site, and send Paypal a Email, asking if they allow buying bitcoin. the reply:
*************
I can assure you that there is no policy against the purchase of
BitCoins, however it is possible that BitCoin simply do not accept
payment through PayPal.
*************
The reply might mean that the front line that replys to this E-mails has no ideal what Bitcoin is?
if enough people sends them E-mail asking for Bitcoins, they might give it some weight in future decision.
I will attempt inform them of what a Bitcoin is.

By the way, sorry if some one posted a similar reply, a lot of people have a lot to say about this, and i can't read it all.
Interesting.  Care to post the full email here?  Definitely update on any future replies they come back with...

Discrepancies in what their employees tell us may force Paypal to outright announce that Bitcoin transactions aren't allowed.  It'd be good publicity.  :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: darbsllim on May 25, 2011, 09:56:09 AM
You shouldn't wait to get involved in bitcoin projects! You have a great mind for what's needed and what people like!

 
I'm still very interested in Bitcoin and plan to continue working on Bitcoin projects.  The Bitcoin ecosystem can change a lot in a few months.  When that time comes, I'll see what needs can be met and go from there.


If you still have that anti-fraud software available, I'd love to talk to you about licensing it for some of my bitcoin projects to save us some time on that end.

Send me a PM!

Brad


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Meni Rosenfeld on May 25, 2011, 10:14:42 AM
If you still have that anti-fraud software available, I'd love to talk to you about licensing it for some of my bitcoin projects to save us some time on that end.

Send me a PM!

Brad
You'll probably get a faster response sending him an email, see http://ndrix.com/ .


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: cloud9 on May 30, 2011, 11:48:33 PM
mndrix: 

When selling BTC, you could maybe pursue becoming a merchant accepting Credit Card payments for BTC digital cryptographic key rights, and not process your credit card customer's purchases through Paypal. 

Then when you buy BTC digital cryptographic key rights, you could maybe still pay your sellers with paypal because of your good reputation with your BTC sellers - that you will not reverse any paypal payments.

BTC being anonymous is open to discussion, BTC being an e-currency and not maybe just plain digital cryptographic key rights is open to discussion.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: TiagoTiago on May 31, 2011, 02:05:41 AM
Pardon my ignorance, what exactly is a "BTC digital cryptographic key rights"?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: AntiVigilante on May 31, 2011, 04:28:30 AM
Pardon my ignorance, what exactly is a "BTC digital cryptographic key rights"?

Rights to numbers in wallets as opposed to the value.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: TiagoTiago on May 31, 2011, 04:48:09 AM
you mean the private keys?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: forbun on May 31, 2011, 02:45:46 PM

This whole situation has reminded me once again why distributed, resilient systems like Bitcoin and OTC are so important.


I love this statement.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on October 27, 2011, 03:14:53 PM
PayPal thawed my account today (after 6 months).  My full PayPal balance is being transferred to my bank account.  I received two small chargebacks shortly after the freeze and none for the following 5.5 months.  Those chargebacks didn't materially affect the fraud rates I mentioned in April (https://bitcointalk.org/index.php?topic=2555.msg101084#msg101084).

My plan is to bring back CoinCard (http://coincard.ndrix.com/) within the next month or so (minus PayPal plus a couple other payment methods).  Once that's running smoothly again, I'll start implementing credit card payments on CoinPal (http://coinpal.ndrix.com/).  I don't have a timeline, but I think my anti-fraud systems are up to the task.  I've kind of missed swimming with the sharks :-)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Coinabul on October 27, 2011, 03:17:30 PM
I do believe AccessCoin beat you to the punch on the creditcard idea. :(


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Meni Rosenfeld on October 27, 2011, 03:59:02 PM
PayPal thawed my account today (after 6 months).  My full PayPal balance is being transferred to my bank account.  I received two small chargebacks shortly after the freeze and none for the following 5.5 months.  Those chargebacks didn't materially affect the fraud rates I mentioned in April (https://bitcointalk.org/index.php?topic=2555.msg101084#msg101084).

My plan is to bring back CoinCard (http://coincard.ndrix.com/) within the next month or so (minus PayPal plus a couple other payment methods).  Once that's running smoothly again, I'll start implementing credit card payments on CoinPal (http://coinpal.ndrix.com/).  I don't have a timeline, but I think my anti-fraud systems are up to the task.  I've kind of missed swimming with the sharks :-)
Great news!

I do believe AccessCoin beat you to the punch on the creditcard idea. :(
A service that charges 20% extra doesn't count.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on October 27, 2011, 06:04:40 PM
I do believe AccessCoin beat you to the punch on the creditcard idea. :(
A service that charges 20% extra doesn't count.

MemoryDealers beat me too it also (via physical delivery).  As I understand it, AccessCoin uses Google Checkout whose ToS prohibit currency exchange.  I'm sure Google will be friendlier than PayPal was, so I wish AccessCoin the best of luck.

I don't want to promise a specific fee at this point, but I'll be disappointed with myself if it's above 10%.  High fees tend to discourage honest customers, leaving only the fraudulent ones using the service.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Coinabul on October 27, 2011, 06:08:53 PM
I do believe AccessCoin beat you to the punch on the creditcard idea. :(
A service that charges 20% extra doesn't count.

MemoryDealers beat me too it also (via physical delivery).  As I understand it, AccessCoin uses Google Checkout whose ToS prohibit currency exchange.  I'm sure Google will be friendlier than PayPal was, so I wish AccessCoin the best of luck.

I don't want to promise a specific fee at this point, but I'll be disappointed with myself if it's above 10%.  High fees tend to discourage honest customers, leaving only the fraudulent ones using the service.
I thought Google Checkout was friendly to digital currency?


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on October 27, 2011, 07:32:13 PM
I thought Google Checkout was friendly to digital currency?

It's always a little hard to tell how the ToS will be interpreted.  Google says they prohibit "wholesale currency" transactions (https://checkout.google.com/support/sell/bin/answer.py?answer=75724&hl=en) which includes "currency exchanges."  I don't know whether Google's legal department considers Bitcoin a currency.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: jgarzik on October 31, 2011, 02:25:01 AM
I thought Google Checkout was friendly to digital currency?

Not at all.

Months ago, I ran the Bitcoin Store, which sold bitcoins in return for Liberty Reserve / GlobalDigitalPay / etc.  Tried to add Google Checkout, and was explicitly denied within 24 hours of adding G.C. to my site.  When bitcoins were explained to Google, they pointed me to the "no digital currencies" portion of their ToS.



Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: px403 on November 09, 2011, 08:39:46 AM
I run btcnow.net, and after months of fighting with google checkout (got my IPN code working tonight), I'm taking my chances with paypal (with some major restrictions).  It will be a good test to see if they are still hostile towards bitcoin.  I operated fine on checkout for a while, but once one jackass got it in their head that it was some sort of criminal scam, they banned my account, and hunted down any new ones I tried to open up.  They said I didn't violate any TOS, but my business model was just "incompatible" with google checkout, and they wouldn't tell me anything more for "security reasons".


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on July 18, 2012, 06:02:45 PM
For those subscribed to this thread, I posted another thread about anti-fraud lessons learned (https://bitcointalk.org/index.php?topic=93770.0) while operating CoinPal.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nebiz on April 27, 2013, 07:01:27 AM
Thanks for the lessons learned thread, good tribal knowledge!


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: coinmama on May 13, 2013, 09:04:04 AM
We at CoinMama.com (http://CoinMama.com) also had the misfortune of having or PayPal account reviewed and frozen after a period of 2 months.
But now we're working with Western Union and MoneyGram money transfers.
This way we can allow people to buy bitcoins with a credit card since Western Union and MoneyGram offer the option of making a money transfer through a credit card or debit card (in certain countries).  


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Vladimir on May 13, 2013, 09:21:00 AM
damn necros...  ;D

This thread poped up and I am reading all those smart people saying smart things.. and thinking WTF? is it bitcointalk or am I dreaming...




Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nor9865 on May 06, 2015, 02:43:44 PM
I'm wanting to know if they ever unfroze your account? Did you get your money back from them that was seized? Since they are now starting to mingle with bitcoins, I was curious if they would release funds they seized during their btc is against TOS.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Mayer Amschel on May 06, 2015, 02:50:20 PM
I got scammed 6k selling BTC on PayPal. Does this CoinPal guarantee insurance in case of charge back from credit card buyers?

- Mayer Amschel


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nor9865 on May 06, 2015, 03:13:12 PM
I got scammed 6k selling BTC on PayPal. Does this CoinPal guarantee insurance in case of charge back from credit card buyers?

- Mayer Amschel

Coinpal is shut down. They seized and froze the assets due to trading currencies. I was curious if they ever got their money back now that Paypal is starting to verse with Bitcoin. Sorry you lost money on there. Maybe you will get it back one day.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: jdebunt on May 06, 2015, 03:57:04 PM
Coinpal is shut down. They seized and froze the assets due to trading currencies. I was curious if they ever got their money back now that Paypal is starting to verse with Bitcoin. Sorry you lost money on there. Maybe you will get it back one day.

Anyone with more than two peas for a brain saw that coming from miles away.... :)


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Meni Rosenfeld on May 06, 2015, 09:51:41 PM
I'm wanting to know if they ever unfroze your account? Did you get your money back from them that was seized? Since they are now starting to mingle with bitcoins, I was curious if they would release funds they seized during their btc is against TOS.
Unless I'm missing something, the account was unfrozen long ago - https://bitcointalk.org/index.php?topic=2555.msg595903#msg595903.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nor9865 on May 06, 2015, 10:10:11 PM
I'm wanting to know if they ever unfroze your account? Did you get your money back from them that was seized? Since they are now starting to mingle with bitcoins, I was curious if they would release funds they seized during their btc is against TOS.
Unless I'm missing something, the account was unfrozen long ago - https://bitcointalk.org/index.php?topic=2555.msg595903#msg595903.


Thats great. Thank you very much for responding to this. I was extremely curious if Paypal would give the money back or unfreeze accounts since now they are having dealings with bitcoins.  I wonder how much money Paypal acutally had tied up with these type of accounts that were hit. Its kinda a large number I would imagine.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: mndrix on May 06, 2015, 11:30:13 PM
I'm wanting to know if they ever unfroze your account?

As Meni mentioned, PayPal unfroze my account about 6 months after freezing it.  I was able to withdraw my cash at that time.

However, until last month (about 4 years after the freeze) that PayPal account was still restricted.  That is, I was unable to add or withdraw any new funds or make any transactions with that account.  Before those restrictions were lifted, I had to provide a verbal promise that I would not use the account to trade virtual currencies.  So PayPal's baby steps towards Bitcoin haven't reached the ToS department yet, apparently.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: nor9865 on May 06, 2015, 11:36:08 PM
I'm wanting to know if they ever unfroze your account?

As Meni mentioned, PayPal unfroze my account about 6 months after freezing it.  I was able to withdraw my cash at that time.

However, until last month (about 4 years after the freeze) that PayPal account was still restricted.  That is, I was unable to add or withdraw any new funds or make any transactions with that account.  Before those restrictions were lifted, I had to provide a verbal promise that I would not use the account to trade virtual currencies.  So PayPal's baby steps towards Bitcoin haven't reached the ToS department yet, apparently.



Well it is quite a step for them to take I would imagine. Think of all the money that they froze. All the people that had interactions with because of it. I'm not saying that you was last on the list, but it was about what 2 months ago that they announced publicly that they would begin to determine if bitcoin would be a viable resource they could use? So 1 month and they did at least update your account. So, to me, that means that they must have have realistic intentions of implementing btc into their company.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: AlgoSwan on June 03, 2015, 09:13:29 AM
You guys forgot one important thing: Paypal (a system player) can't and won't go against the system. Neither of these small steps taken by them indicates less hostility towards BTC.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: hasmukhh on June 07, 2015, 07:03:00 AM
paypal itself has become a risk for many people nowadays. many of the paypal accounts have been hacked by the hackers.
in this situation using paypal and bitcoin together will be a huge risk for yourself.
its a completely risky thing but if its secured by the hackers completely then may be you can be successful in attracting many people towards this.


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: knowhow on June 07, 2015, 12:13:56 PM
paypal still the best payment processors over the world since most ebusiness use it,bitcoin is new and already got a part of the cake,besides those is hard to exchange to paypal as a user can open a fight and get back the money sent on the 60 days ahead the transaction,soo exchange to paypal currently would be a disaster since desonest people will open a dispute and take the btc as well the money back.... soo better avoid paypal....


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: MarkMJ on June 17, 2015, 08:34:57 AM
Hello

Took me some time to read all the page
Now I have more than one points about some questions that I already find the answers here
Thank you @mndrix


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: estenity on June 23, 2017, 07:56:19 AM
paypal a true myth...


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: Jacob211 on June 23, 2017, 08:34:38 PM
This service is great. I enxchanged paypal to bitcoin one time about 6 months ago and I got a lot of troubles because my paypal name is not the same with my real name on the identity


Title: Re: CoinPal beta - Buying bitcoins with PayPal
Post by: bitcoinvestor on June 23, 2017, 10:41:12 PM
10 to 20 BTC , it s big amount of money. I think you should lower the minimum purchase, 0.1 is great for all paypal users. I find difficult to buy bitcoin with paypal. Most exchanger don't accept paypal but they can sell bitcoin to paypal accout. I mean we make bitcoi to paypal balance. That 's good idea. Most internet users still use paypal as one of the biggest payment gateway.