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Author Topic: Dwolla Begins Paypal-Style Account Suspensions  (Read 4313 times)
Jason
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January 25, 2013, 06:36:04 PM
 #1

Just came across this article:  http://codinginmysleep.com/dwolla-begins-suspensions/

Did a quick search and I don't see any references to it here, so I'm posting it as a new topic since it seems like it may be of general interest to the bitcoin community.  If the specter of account suspension is hung over our heads by Dwolla, then coinbase is going to start making a lot more sense, despite the higher fees (1% vs. $0.25).


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January 25, 2013, 06:40:28 PM
 #2

Already saw this posted here =]
https://bitcointalk.org/index.php?topic=138746.msg0;boardseen#new
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January 25, 2013, 10:12:44 PM
 #3


Just tried to delete the post as a dup, but couldn't.  I'm sure one of the moderators will get it.  The other post was 6 minutes earlier than mine...


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January 25, 2013, 11:27:11 PM
 #4

Dwolla needs to go bankrupt, but them having allied with da guv'mint would mean they'd get a bailout.

If you do business with dwolla you're asinine.

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January 25, 2013, 11:48:50 PM
 #5

Dwolla needs to go bankrupt, but them having allied with da guv'mint would mean they'd get a bailout.

If you do business with dwolla you're asinine.

Dwolla is trying to bring legitimacy to BitCoin by connecting with the powerbase, e.g. our elected government/leadership.

Without that, BitCoin's true potential will never be realized and it will be permanently relegated to a fringe currency used by a small minority of people.

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January 26, 2013, 12:26:33 AM
 #6

Bitcoin's true potential will never be realized if it cooperates with governments.  Bitcoin is bigger than governments and you will see this in your lifetime. Bitcoin does not need legitimacy.  It simply needs to be used by more and more people.  When people use it they will at the same time realize what a scam government currencies are because it will be obvious.


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January 26, 2013, 12:29:35 AM
 #7

suspension for what?  A chargeback or involvment with bitcoin?

If you are involved in a chargeback, it makes sense.
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January 26, 2013, 07:34:59 PM
 #8

Dwolla needs to go bankrupt, but them having allied with da guv'mint would mean they'd get a bailout.

If you do business with dwolla you're asinine.

Dwolla is trying to bring legitimacy to BitCoin by connecting with the powerbase, e.g. our elected government/leadership.

If that's true, then they're going about it the wrong way. People are seeing what a sham the world financial/economic system is; now is the worst possible time to be trying to ally oneself with those who run it, especially considering the strings attached to doing so.


Quote
Without that, BitCoin's true potential will never be realized and it will be permanently relegated to a fringe currency used by a small minority of people.

Even if that were true (and I respectfully disagree that it is,) I personally don't see what the problem is with that.

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January 26, 2013, 08:05:22 PM
 #9

Dwolla needs to go bankrupt, but them having allied with da guv'mint would mean they'd get a bailout.

If you do business with dwolla you're asinine.

Dwolla will eventually run out of money and be purchased by a big bank who will then write off the acquisition cost.

Dwolla has no revenue.
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January 27, 2013, 02:38:00 AM
 #10

Dwolla is trying to bring legitimacy to BitCoin by connecting with the powerbase, e.g. our elected government/leadership.

Link?  Dwolla doesn't even admit Bitcoin exists.  Dwolla has nothing to do with Bitcoin other than users started using it to fund exchange accounts and engage in direct sales.  Nothing on Dwolla site, blog, or corporate reports even mentions the word Bitcoin.

If Bitcoin died tomorrow the only thing that Dwolla would be upset about is the loss of fees.  In the long run Bitcoin as a disruptive technology is just as harmful to Dwolla profit model as it is to PayPal's.
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January 27, 2013, 05:56:45 AM
 #11

Quote

Dwolla will eventually run out of money and be purchased by a big bank who will then write off the acquisition cost.

Dwolla has no revenue.

^^ this ^^


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January 27, 2013, 06:18:05 AM
 #12

Dwolla is trying to bring legitimacy to BitCoin by connecting with the powerbase, e.g. our elected government/leadership.

Without that, BitCoin's true potential will never be realized and it will be permanently relegated to a fringe currency used by a small minority of people.

Bwahahahahahahaha...

Where do you people come up with this garbage?

I spat up my coffee when I read that also lol


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January 27, 2013, 06:44:25 AM
 #13

I actually know one of the companies that are invested into Dwolla, and they have hired a lot more staff and have been doing pretty well financially.
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January 27, 2013, 06:53:36 AM
 #14

In the long run Bitcoin as a disruptive technology is just as harmful to Dwolla profit model as it is to PayPal's.

Dwolla had a golden opportunity to play Trainman, ferrying money back and forth between our world (the Matrix) and the machine world.

But Dwolla is funded by venture capital, whose vast investments in regulatory capture are threatened by Bitcoin.

By siding with obsolete anti-consumer PayPal style technology and eschewing truly disruptive innovation, Dwolla relegates itself to unprofitable infamy.


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January 28, 2013, 07:06:57 AM
 #15

By siding with obsolete anti-consumer PayPal style technology and eschewing truly disruptive innovation, Dwolla relegates itself to unprofitable infamy.

Right now, Dwolla fills a niche because it allows those of us with US bank accounts to cheaply convert between and dollars.

How much more would you pay to support a bitcoin-friendly business that provides the same service?  Twice?  Three times?  How about forty times as much!  A typical $1000 transfer between Mt. Gox from Dwolla costs $0.25.  It would cost $10 to use coinbase.

I'd love to support bitcoin-friendly businesses like coinbase, but until they are able to reduce their fees to be somewhat more competitive, using their service doesn't make sense to me.  If they changed to a flat-rate fee schedule, they'll have me as a customer even at quadruple what Dwolla charges.

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January 28, 2013, 02:32:56 PM
 #16

By siding with obsolete anti-consumer PayPal style technology and eschewing truly disruptive innovation, Dwolla relegates itself to unprofitable infamy.

Right now, Dwolla fills a niche because it allows those of us with US bank accounts to cheaply convert between and dollars.

How much more would you pay to support a bitcoin-friendly business that provides the same service?  Twice?  Three times?  How about forty times as much!  A typical $1000 transfer between Mt. Gox from Dwolla costs $0.25.  It would cost $10 to use coinbase.

I'd love to support bitcoin-friendly businesses like coinbase, but until they are able to reduce their fees to be somewhat more competitive, using their service doesn't make sense to me.  If they changed to a flat-rate fee schedule, they'll have me as a customer even at quadruple what Dwolla charges.


Jason. Not gonna happen. No business can make a profit at that fee level. Even at scale.

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January 28, 2013, 06:01:39 PM
 #17

Jason. Not gonna happen. No business can make a profit at that fee level. Even at scale.

If you're right, then it's just a matter of time before Dwolla either goes out of business or raises its fees.  Until that happens it makes sense for me to keep using them so long as they remain reliable.

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January 28, 2013, 06:13:44 PM
 #18

Jason. Not gonna happen. No business can make a profit at that fee level. Even at scale.

If you're right, then it's just a matter of time before Dwolla either goes out of business or raises its fees.  Until that happens it makes sense for me to keep using them so long as they remain reliable.


So you think current dwolla model is doomed?
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January 28, 2013, 06:18:21 PM
 #19

Jason. Not gonna happen. No business can make a profit at that fee level. Even at scale.

If you're right, then it's just a matter of time before Dwolla either goes out of business or raises its fees.  Until that happens it makes sense for me to keep using them so long as they remain reliable.


So you think current dwolla model is doomed?

Run the numbers

They've taking in 10M inventure capital

They take 0.25 per transaction (over 10.00).

not a great revenue model.

Dwolla is a service. That banks will subsidize it.  Kind of like a modernized ACH system.

Dwolla will not remain a stand alone company.  If it doesn't fail before an acquisition by (Chase, BofA or some Visa/Amex like association) which is obviously the exit strategy.



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January 28, 2013, 06:28:57 PM
 #20

Jason. Not gonna happen. No business can make a profit at that fee level. Even at scale.

If you're right, then it's just a matter of time before Dwolla either goes out of business or raises its fees.  Until that happens it makes sense for me to keep using them so long as they remain reliable.


So you think current dwolla model is doomed?

Run the numbers

They've taking in 10M inventure capital

They take 0.25 per transaction (over 10.00).

not a great revenue model.

Dwolla is a service. That banks will subsidize it.  Kind of like a modernized ACH system.

Dwolla will not remain a stand alone company.  If it doesn't fail before an acquisition by (Chase, BofA or some Visa/Amex like association) which is obviously the exit strategy.

What is cost of transferring money? If they make themselves like ACH, I think the cost is not high. (If they stick to all payments are final. Period. Refund should be negotiated between parties, not dwolla)

Even liberty Reserve only ask for 1% and they are not even a legit business model.
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