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Author Topic: BitcoinGateway.com - BTC & MtGoxUSD via Visa/Mastercard (US only)  (Read 15233 times)
chaord
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November 22, 2010, 06:29:52 PM
 #1

Hi guys,

It's been a while since I have posted on the forums.  But just to clarify, I have not lost faith or interest in bitcoin.  In fact I have spent the last month creating a new bitcoin-enabled website https://www.bitcoingateway.com  BitcoinGateway.com is open for business!

The purpose of BitcoinGateway is to allow normal credit-card bearing consumers to purchase bitcoins and automatically send them to an address under their control (eg, a character address at http://www.dragons.tl/  or an account at mtgox, etc).  Generally speaking these will be the non-sophisticated users of bitcoin (otherwise they would just access the markets directly).

Of course, when taking the plunge and accepting credit cards for bitcoins, there is inherent charge-back and identity theft risk.  For this reason I have implemented an extensive customer verification procedure.  Whenever a new credit card is registered with BitcoinGateway.com, the following steps are taken:
  • Require all normal customer address/billing information
  • Additionally, require customer's billing phone number
  • Additionally, require 1-800 customer service number on back of credit-card (issuing bank for the credit card)
  • Confirmation code is given/emailed to customer
  • Performed by BitcoinGateway.com:  Call the credit card's issuing bank, and verify the billing phone number given by the customer.
  • If the bank records match the number given by the customer, then call that billing number. (record this call)
  • Request the confirmation number originally given to the customer (verifies that the actual bank customer made the BTC purchase)
  • Process transaction

The above goes on behind the scenes, but it does delay the processing of initial transactions.  However, the hope here is that it will weed out the vast majority of charge-back and fraud risk (and therefore, keep prices low).

As always, feedback/comments are welcome and appreciated.  Either post here, or email me at chaord@bitcoingateway.com

Happy bitcoining!

--Chaord
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jimbobway
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November 22, 2010, 06:34:14 PM
 #2

Have you considered text message code that is sent to a phone?  It would be another step for security...

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chaord
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November 22, 2010, 06:46:50 PM
 #3

Have you considered text message code that is sent to a phone?  It would be another step for security...

I did consider that (and may still implement it), however the important thing here is that I call the billing phone number for the credit card (whether it's a mobile phone or not).  Unfortunately such a long procedure isn't incredibly scalable, so if business/demand is good I have some automation techniques I can chase after as well (eg, a random pending charge between $1 and $3 and asking the customer to check their statement and put in the exact amount).  Unfortunately fully automated might draw people who have actually phished for full bank credentials and such.  For this reason I'm sticking with phone calls for now.   Thanks for the feedback!
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November 22, 2010, 06:52:25 PM
 #4

chaord, good luck with it! it should really help attract more users into bitcoin community!

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November 22, 2010, 06:52:55 PM
 #5

What about gift/prepaid credit cards?  Is there any way to use these in case people want anonymity?

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VISIT OUR WEBSITE
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chaord
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November 22, 2010, 06:59:59 PM
 #6

What about gift/prepaid credit cards?  Is there any way to use these in case people want anonymity?

Hmm, hadn't thought about that.  I'll have to look up gift/prepaid cards and see how the charge-back stuff works.  If it's not possible for customers to call the issuer of the gift/prepaid card and dispute a charge then I may be able to accept them without much verification at all.  However, if the charge-back risk is there I'm inclined to say no.

Of course, if you are a trusted member of the bitcoin community, you can contact me directly and we may be able to work something out :-)
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November 22, 2010, 07:02:32 PM
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What about gift/prepaid credit cards?  Is there any way to use these in case people want anonymity?

Hmm, hadn't thought about that.  I'll have to look up gift/prepaid cards and see how the charge-back stuff works.  If it's not possible for customers to call the issuer of the gift/prepaid card and dispute a charge then I may be able to accept them without much verification at all.  However, if the charge-back risk is there I'm inclined to say no.

Of course, if you are a trusted member of the bitcoin community, you can contact me directly and we may be able to work something out :-)

Ok, if there was little or no charge back risk it would be great.  How many bitcoins do u have for sale?

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VISIT OUR WEBSITE
TWITTER 】【 FACEBOOK 】【 TELEGRAM

ribuck
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November 22, 2010, 07:54:42 PM
 #8

I'd love to use your service, but I'm not from the USA. Although my credit card has a customer service phone number on the back, it's not toll-free, and I'm sure they won't discuss my phone number with people who call that number.

I would like to find a verification process that is workable and is acceptable to you (e.g. mailing an original copy of my credit card statement perhaps).
chaord
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November 22, 2010, 08:03:55 PM
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Ok, if there was little or no charge back risk it would be great.  How many bitcoins do u have for sale?

My goal is to be able to process transactions of up to 300 BTC at any given time (hopefully more later).

I'd love to use your service, but I'm not from the USA. Although my credit card has a customer service phone number on the back, it's not toll-free, and I'm sure they won't discuss my phone number with people who call that number.

I would like to find a verification process that is workable and is acceptable to you (e.g. mailing an original copy of my credit card statement perhaps).

You can email me if you'd like to come up with some sort of alternative arrangement, although speaking with the bank directly is probably what I will prefer.
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November 22, 2010, 08:41:12 PM
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What is the minimum amount you will sell? Is there a fixed fee, %fee, or are you just going to run a spread?

If a person gets verified on the first purchase, is it much simpler for future purchases with the same card?

Not asking for myself, might refer some noobs. I've been reluctant to spread the word to friends when the best way to get coins would be for people to buy from me.

Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone.
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November 22, 2010, 09:41:02 PM
 #11

What is the minimum amount you will sell? Is there a fixed fee, %fee, or are you just going to run a spread?
The default transaction amount when you click "buy" is 50 BTC, the minimum is less (closer to 10 currently).  Any fees are included in the quoted price (eg my prices are slightly higher than the spot rate on the markets).

Quote
If a person gets verified on the first purchase, is it much simpler for future purchases with the same card?
Yes, that's precisely what BitcoinGateway is designed for, repeat customers.  Once a card is registered and verified it's as easy as clicking "buy", putting in the number of BTC.

Quote
Not asking for myself, might refer some noobs. I've been reluctant to spread the word to friends when the best way to get coins would be for people to buy from me.
Thanks for the referral!  Incidentally, I'm working on a referral system where you could get a BTC referal fee as a % of the BTC that they purchase.
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November 22, 2010, 10:47:52 PM
 #12

What is the minimum amount you will sell? Is there a fixed fee, %fee, or are you just going to run a spread?
The default transaction amount when you click "buy" is 50 BTC, the minimum is less (closer to 10 currently).  Any fees are included in the quoted price (eg my prices are slightly higher than the spot rate on the markets).

Quote
If a person gets verified on the first purchase, is it much simpler for future purchases with the same card?
Yes, that's precisely what BitcoinGateway is designed for, repeat customers.  Once a card is registered and verified it's as easy as clicking "buy", putting in the number of BTC.

Quote
Not asking for myself, might refer some noobs. I've been reluctant to spread the word to friends when the best way to get coins would be for people to buy from me.
Thanks for the referral!  Incidentally, I'm working on a referral system where you could get a BTC referal fee as a % of the BTC that they purchase.

That all sounds great.

Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone.
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November 23, 2010, 01:57:43 AM
 #13

It would be nice if the site actually worked (currently getting "server not responding")...
chaord
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November 23, 2010, 02:55:57 AM
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It would be nice if the site actually worked (currently getting "server not responding")...

Hmm...everything seems to be working fine on my end.  Could you please email admin@bitcoingateway.com with details of the server-not-responding incident you received.  Sorry for the inconvenience if it was on my end.
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November 23, 2010, 03:32:11 AM
 #15

It's working now, so maybe it was an internet glitch or something...
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November 23, 2010, 10:47:18 AM
 #16

Have you thought about using 3D secure?

This forces the customer to enter a password for each purchase. The password is issued by his bank.

In combination with email verification it's probably secure enough.

Your present procedure is cumbersome. It will discourage a good percentage of potential customers.

I personally find the idea of someone calling me on my mobile phone over some $50 Bitcoin purchase very invasive.  If someone is going to interrupt me at work, it better be something important.  Maybe it's just cultural...

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November 23, 2010, 11:02:27 AM
 #17

Have you thought about using 3D secure?

This forces the customer to enter a password for each purchase. The password is issued by his bank.

In combination with email verification it's probably secure enough.

Your present procedure is cumbersome. It will discourage a good percentage of potential customers.

I personally find the idea of someone calling me on my mobile phone over some $50 Bitcoin purchase very invasive.  If someone is going to interrupt me at work, it better be something important.  Maybe it's just cultural...

Better that than letting the scammers shut down another credit card exchanger.
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November 23, 2010, 04:09:49 PM
 #18

Hi guys,
Just a heads up.  BitcoinGateway.com's Linode seems to be down right now.  I'm not sure if it's them or me (probably me), but I'm working to resolve the situation asap.  Sorry for any inconvenience this may have caused.
--Chaord
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November 23, 2010, 07:30:58 PM
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it's "them" - http://status.linode.com/2010/11/fremont-connectivity.html

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November 24, 2010, 01:21:19 AM
 #20

Shiesh...well, long days journey into night, and the site is back up.  Sorry everyone.
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