Certified Customer, Store Hours, or Purchase Limits

[lotsofblocks]

What do you guys think would be the most useful if you had a store selling crypto?

• Restrict sales to certified customers
• Restrict sales during store hours (to avoid complaints)
• Set purchase limits per person and time (like 24 hours only $200).

[OmegaStarScream]

Why would you limit anything? If your goal is to make profit and sell your bitcoins then I see no reason to make any restrictions unless you have to due to regulations.

[lotsofblocks]

You wouldn't be concerned with scamming/theft by fraudulent credit cards and Paypal accounts?

[magneto]

Obviously getting people certified would be the best option. However, even then there is a risk of people charging back and as a result, you lose out on a lot of your profits. Though you also have to consider the fact that not a lot of people would be even interested in using your site if you require verification, since they can just use other exchanges instead.

I'd suggest having a small purchase limit on unverified accounts (say $50 per week), and a larger limit on those who are verified. I don't think that store hours would help.

You still got to understand though that these are only reducing the risk, they are not eliminating the risk of chargeback. If possible, I suggest staying away from dealing with CC/paypal when selling BTC altogether.

[Lanatsa]

Obviously getting people certified would be the best option. However, even then there is a risk of people charging back and as a result, you lose out on a lot of your profits. Though you also have to consider the fact that not a lot of people would be even interested in using your site if you require verification, since they can just use other exchanges instead.

I'd suggest having a small purchase limit on unverified accounts (say $50 per week), and a larger limit on those who are verified. I don't think that store hours would help.

You still got to understand though that these are only reducing the risk, they are not eliminating the risk of chargeback. If possible, I suggest staying away from dealing with CC/paypal when selling BTC altogether.

Good idea and a Good advise!

Store hours has nothing to do with this business and when it comes to PP/card to BTC transactions chargeback will be always there no matter if they are verified ones but you cant really guarantee that you would be on excemption. If he do have a conserable or attractive rates then its possible to get some buyers that dont expect would be too much yet most people here do always prefer to make use on most reputable exchangers.

[lotsofblocks]

Agree.

Unverified and verified are limited for Stripe and Paypal.  Verified can be a little more but still needs a limit.

Zelle and Paypal with friends unlimited.  Funds cannot be charged back from my understanding.

The hours are just so people know that they won't get the crypto instantly and start complaining.

[SFR10]

Some modifications:

• Restrict sales to certified customers

Have different limits for each verification level:
- Email and number verification (level 1)
- ID and pic verification (level 2)

BTW, I value this restriction more since sooner or later, you'll be forced to go with this route (you might as well go with it from the start [based from what I've noticed recently]).

• Restrict sales during store hours (to avoid complaints)

Not just "store hours" but instead a few hrs prior to it (to allow for everything to be sorted out in the same day).

[buwaytress]

Instead of blocking off times, an accurate delivery system displaying estimated times to different stages of delivery/purchase is much better. So any item can be bought at any time, but they should be informed of estimated time to payment settlement, product fulfilment, etc.

Good call on SFR for full verification or KYC at the process of onboarding first, and then higher level verification necessary, but always triggering when attempting activity requiring it, never, ever after. Users should only be able to access features after passing required verification.

Oh and full crypto, please. No 3rd party bitcoin processor like Bitpay. You'll appreciate it, your customers will too.

[lotsofblocks]

Some modifications:

• Restrict sales to certified customers

Have different limits for each verification level:
- Email and number verification (level 1)
- ID and pic verification (level 2)

BTW, I value this restriction more since sooner or later, you'll be forced to go with this route (you might as well go with it from the start [based from what I've noticed recently]).

• Restrict sales during store hours (to avoid complaints)

Not just "store hours" but instead a few hrs prior to it (to allow for everything to be sorted out in the same day).

I definitely want the 2 levels now with restrictions on the amount that can be purchased within a timeframe.  I'm thinking around $100 per week for level 1 and $200 for level 2.  The dollar amounts and timeframe can be adjusted later if they are too low or high and short or long, respectively.

After I get the verification levels then I will think about the store hours more.  I like ending the cut off period to avoid people ordering at the last minute and not getting their order until the next day.  It could be confusing plus a lot of work to code to have items appearing and/or not orderable at all different times of the day plus how many stores will actually use it correctly.

I'm going to get to coding and let you know what I get working.  Thanks for all the input.

[timerland]

A tiered verification system makes the most sense to me. Each tier would have its own verification standards, e.g. tier one has to complete their personal info, and can only buy $10 worth of BTC in 24h, etc. as the limits gradually build up.

If you want a structure to reference to, look at what Virwox is doing with their verification tiers and you can take what you want from them.

Goes without saying though that this is high risk stuff you're dealing with. Make sure that you understand the risks as a lot of fraudulent paypal/cc's will be used on your site in attempt to purchase BTC.

I'm not that fond of store hours though, because isn't the idea so that you can buy BTC 24/7? Otherwise, just set up a LBC account.

[lotsofblocks]

LBC has a lot of nice features.  I don't see the ability to sell other crypto, bitcoin price tracking, custom pricing criteria for regular customers, and other common market features.

I got the SMS and email verification working so that will add protection.  Really great idea to add these 2 verifications together to avoid fraudulent accounts.  I also added to deny known spam email addresses.

Next adding limits on purchases.

[lotsofblocks]

Got the purchase limits:

Total purchases for the last 7 days plus cart total
Level 1 - $100
Level 2 - $250

Store hours I think I will just leave as a store description for now.