Need some expert opinion here guys :)

[ali97hakim]

Hello, bitcointalk!

I have wanted to own a bitcoin business for a while now. There have been services that come and gone in the past but most no one really offers a simple, easy, reliable way for anyone to buy bitcoin using a credit/debit card. I want to develop a site that would allow novices and experts to easily purchase bitcoin using prepaid card or credit card, without having to go through a ton of processes to get their coin & being bombarded with massive fees. In a relatively quick time.

I am an experienced web developer with a fair amount of knowledge in bitcoin.

My questions:

1). How should I set this up legally so that I am abiding by the laws & paying the right taxes? (I am looking for a bitcoin lawyer, if I can find one)

2). What type of verification could I go through that my visitors know that this is a legitimate service and not some scam site?

3). For security purposes I am thinking of handling all orders manually from my cold storage vault and delivering within 24 hours, thoughts?

4). I obviously don't know everything at the moment, so what major problems should I look out for when it comes to this?

5). What are your overall thoughts & concerns about this idea?

Here are some photos of what I have developed so far
https://i.imgur.com/bgBOlGD.jpg
https://i.imgur.com/rp5iBlk.jpg

[Jet Cash]

Two things spring to mind.

You should check the anti-money laundering laws and policy in your country.

Verify that credit cards do not/will not consider an exchange to Bitcoin as a cash advance.

[ali97hakim]

Two things spring to mind.

You should check the anti-money laundering laws and policy in your country.

Verify that credit cards do not/will not consider an exchange to Bitcoin as a cash advance.

I live in the United States. Bitcoin is taxed as property by the IRS, maybe I could sell it as that somehow online? not sure, i have a lot of research to do...

[crazyivan]

Credit Card charge back is a major issue. This is why all major sites like Payza or Solid Trust Pay allow buying BTC only with debit cards or wire. I suggest you pay attention to that.

[MyBTT]

I really have no idea about how to make a Bitcoin business. But I know that there aren't any Bitcoin lawyers.

[ATguy]

I want to develop a site that would allow novices and experts to easily purchase bitcoin using prepaid card or credit card, without having to go through a ton of processes to get their coin & being bombarded with massive fees.

4). I obviously don't know everything at the moment, so what major problems should I look out for when it comes to this?

The problem is there is market of stollen Visa/MC cards finding ways how to safelly empty the cards without getting caught, so expect high % number of chargebacks by Visa/MC from these stollen cards. Thats why the fees are massive for such exchange.

[equator]

First thing is you have to check with which country you reside and what are their laws and taxation on Bitcoin, Second you have to be very caution with the payment system, as some of them have mentioned that credit card are reversible as their are lot of stolen credit card users. So you have to think about payment options. Third you have to give a very tight security to your server as it dont get hacked. for this you should have a full knowledgeable team for the site.

[bob123]

You have to make sure you won't get scam by Debit Card Fraud.
Additionally if you really want to start a serious business, make sure to get a professional back-end coder.

[Erkallys]

Credit Card charge back is a major issue. This is why all major sites like Payza or Solid Trust Pay allow buying BTC only with debit cards or wire. I suggest you pay attention to that.

Back in time, when I bought for the only time I ever did a fraction of a Bitcoin, I've been able to deposit money on Payza via a credit card and directly buy on Indacoin.

[Glucose]

3). For security purposes I am thinking of handling all orders manually from my cold storage vault and delivering within 24 hours, thoughts?

Seems good to me. The exchange I'm using delivers bitcoins twice a day. To me it never has been a problem. Be sure to create a FAQ on your future website with the withdrawal timing question.

4). I obviously don't know everything at the moment, so what major problems should I look out for when it comes to this?

5). What are your overall thoughts & concerns about this idea?

This kind of service could be really of good use for the community. I guess there is a lot of demand for this.

I guess your main problem will be to face chargeback (even on this forum a lot of people are "selling" credit card numbers), etc... It's quite a scammy situation for your project.

Second one is to be sure the security of your website is good enough. No body wants to give credit card informations and you will probably soon or later face hack attempts / DDOS attempts.

Be sure to find a law specialist before launching your project. You have to be sure of the tax your service will have to pay & think about a SIG campaign when you will launch your service. It will only work if enough people use it.

[ali97hakim]

3). For security purposes I am thinking of handling all orders manually from my cold storage vault and delivering within 24 hours, thoughts?

Seems good to me. The exchange I'm using delivers bitcoins twice a day. To me it never has been a problem. Be sure to create a FAQ on your future website with the withdrawal timing question.

4). I obviously don't know everything at the moment, so what major problems should I look out for when it comes to this?

5). What are your overall thoughts & concerns about this idea?

This kind of service could be really of good use for the community. I guess there is a lot of demand for this.

I guess your main problem will be to face chargeback (even on this forum a lot of people are "selling" credit card numbers), etc... It's quite a scammy situation for your project.

Second one is to be sure the security of your website is good enough. No body wants to give credit card informations and you will probably soon or later face hack attempts / DDOS attempts.

Be sure to find a law specialist before launching your project. You have to be sure of the tax your service will have to pay & think about a SIG campaign when you will launch your service. It will only work if enough people use it.

This seems this is going to be quite an expensive startup, I am thinking of offering cash deposit payments & wire transfers. Because they are secure & and I can send bitcoin orders out quicker too because I would just have to verify the deposit in my bank account.

[NorrisK]

You will very likely go bankrupt because of credit card fraud. If you don't put in the necessary id verification steps you are asking for people to use stolen cards on your site.

Next, 24 hour deliveries are not of this era. Everything is going on continuously and becoming more and more instantaneously. Why would I use your service if there are at least 2 services available in my country that allow buying bitcoin with my debit card and have them delivered as soon as the next block hits?

[ali97hakim]

You will very likely go bankrupt because of credit card fraud. If you don't put in the necessary id verification steps you are asking for people to use stolen cards on your site.

Next, 24 hour deliveries are not of this era. Everything is going on continuously and becoming more and more instantaneously. Why would I use your service if there are at least 2 services available in my country that allow buying bitcoin with my debit card and have them delivered as soon as the next block hits?

good points, I can see why there aren't many sites that offer this. I still want to move with this idea & maybe offer cash deposit/wire transfer payments. Like bitquick.co but much faster.

[lolxxxx]

hey Ali Bro,

I have a question , If (me) a buyer came to your site ,looking to buy some bitcoins obviously how can he feel secure while buying bitcoins from your site ? Convince me ?

[NorrisK]

You will very likely go bankrupt because of credit card fraud. If you don't put in the necessary id verification steps you are asking for people to use stolen cards on your site.

Next, 24 hour deliveries are not of this era. Everything is going on continuously and becoming more and more instantaneously. Why would I use your service if there are at least 2 services available in my country that allow buying bitcoin with my debit card and have them delivered as soon as the next block hits?

good points, I can see why there aren't many sites that offer this. I still want to move with this idea & maybe offer cash deposit/wire transfer payments. Like bitquick.co but much faster.

Speed and easy of use are most important for the customers. If you can create something like that, while protecting your own bank from fraudsters, you might be able to get a lot of traffic.

Good luck with your efforts! Bitcoin can use businesses like this.

[liquidiser]

Check if operating your business would classify you as a money transmitter as in American law. If your business would be classified as a money transmitter then it would need a license to operate in each American state it has customers in. if it did business with New York residents it would also need a Bit License. I think getting money transmitter licenses for all American states can cost over a million dollars per year.

[countryfree]

Hello, bitcointalk!

I have wanted to own a bitcoin business for a while now. There have been services that come and gone in the past but most no one really offers a simple, easy, reliable way for anyone to buy bitcoin using a credit/debit card.

You're not the first one to have this idea, so ask yourself why isn't anyone (that including folks with large resources) offering that kind of service?
What you must consider is that you cannot do it all by yourself. You will need to sign a partnership with a credit card processing service. If it was easy, somebody would be doing it, already.

[OROBTC]

I really have no idea about how to make a Bitcoin business. But I know that there aren't any Bitcoin lawyers.

A quick Google search "Bitcoin, lawyers" yielded up at least four law firms on the first page of results.

thebtclawyer.com/

bitcoinlaw.net

www.attorneybitcoin.com/

www.mushkinlaw.com/bitcoin-law1.html

*   *   *

Someone, somewhere, at some time is going to find a way to sell BTC without all of the AML/KYC regulations.  And they will make a fortune, a gold mine.

[ali97hakim]

hey Ali Bro,

I have a question , If (me) a buyer came to your site ,looking to buy some bitcoins obviously how can he feel secure while buying bitcoins from your site ? Convince me ?

This whole thread is for brainstorming. But, my question exactly, what would convince you?

[franky1]

hey Ali Bro,

I have a question , If (me) a buyer came to your site ,looking to buy some bitcoins obviously how can he feel secure while buying bitcoins from your site ? Convince me ?

This whole thread is for brainstorming. But, my question exactly, what would convince you?

money service business(MSB) registration numbers
domain name not hidden behind WHOIS guards
proper business registration
no PO BOX addresses
no using an agent as a registration address