Tradehill is correct that the Dwolla blog suggests transactions are free of chargeback concerns.
But unfortunately, Dwolla's (current at least) "Terms & Conditions" -- which includes clauses overruling anything they might say anywhere else -- states the following, in sharp conflict to the Dwolla blog entry:
Returns -- The receiving party of a transaction may be subject to chargebacks occurring within the account if claims are made by the sending party or by the financial institution. In the event fraud occurs, funds may be reversed and arbitration will begin with both parties.
Abuse -- At any time Dwolla retains the right to close, suspend, or limit account activity. Dwolla may, in the event of excess returns, chargebacks, or suspected illegal activity revoke access to the account for 90 days.
Dwolla wants to depend on ACH (Automated Clearing House), which is inherently
reversible. MtGox & Tradehill want to depend on Dwolla. And we want to depend on them for fast, convenient transactions.
There is a problem here which may ultimately force us to revert to bank wires, bank checks, money orders, and other cashlike transfers. To buy a non revocable currency might take a non revocable transaction.
Does anyone know how exchanges for Pecunix, Liberty Reserve, etc. handle this issue?
One way might be to limit the size of transfers for new customers of exchanges ... while absorbing a certain amount of new-user fraud as inevitable. I would be sad to see that happen, because it would raise exchange fees, reducing one of the great advantages BTC exchanges have over traditional markets.As a compromise, higher fees could be assessed only on revocable deposits: users would pay more for convenience & speed.
Exchanges could thereby self-insure or obtain insurance against losses to fraud, without eliminating rapid transfers.
Dwolla blog, http://www.dwolla.org/blog/retail-merchants-rejoice-web-kiosk-online/
which currently says "Remember, these are cash-based transactions! No credit card fees, chargeback concerns, or signing necessary!"
"Terms & Conditions" link on the registration page at https://www.dwolla.com/register.aspx#