BTC Chargebacks

[TheJunkieMonkey]

Hi

I am new to BTC as I now have customers who want to pay me in it.

I have signed up with VirWoX as I can cash out to Paypal.

I am just wandering if anybody was to pay me then put a Chargeback through with there Card Issuer and/or Paypal do I lose out?

Thanks

[1715413128]

1715413128

[1715413128]

1715413128

[ranochigo]

It is impossible to charge back on bitcoin. Since it is P2P, once you send something out, they cannot tell anyone that they didn't receive it and want it back. Once your BTC leave your wallet, it will be gone to the destination address immediately. Virwox cannot charge back on you since they are only an exchange and don't manage bitcoin transfers.

[PangPang]

As long as the bitcoin tx has confirmations (the more the better), it is almost impossible to reverse it.

Remark: Theoretically speaking, it is possible with double spending, but the attacker himself need to have overwhelming hashrate (51% attack) or extreme luck (able to find a few blocks in a row by solo-mining with little hashrate).

[TheJunkieMonkey]

Hi

Thanks for the info, but I Think we have got mixed up, I will be sending out Physical Goods, they will just pay by BTC.

As they seem to be the only company that allows cashout to Paypal I don't want to get on the wrong side of them.

So My question is : If somebody gave me BTC and I send the goods out THEN they do a Chrageback would they or any other company take the funds back off me and leave a mark against me (like paypal for example) or as it is BTC just automatically go in my favour?

Thanks

[ranochigo]

Hi

Thanks for the info, but I Think we have got mixed up, I will be sending out Physical Goods, they will just pay by BTC.

As they seem to be the only company that allows cashout to Paypal I don't want to get on the wrong side of them.

So My question is : If somebody gave me BTC and I send the goods out THEN they do a Chrageback would they or any other company take the funds back off me and leave a mark against me (like paypal for example) or as it is BTC just automatically go in my favour?

Thanks

No, they should not know that you are cashing out from virwox. Virwox also cannot doba charge back since they are not the middle man for that transaction.

[TheJunkieMonkey]

Sorry is that No they Won't Fuck me or No they Won't work in My Favour?

Sorry I am new to this, very new to this.

[ranochigo]

Sorry is that No they Won't Fuck me or No they Won't work in My Favour?

Sorry I am new to this, very new to this.

No, they won't fuck you. Since the transaction is done in bitcoin, they cannot prove that you indeed didn't deliver the goods. They are just an exchange, not a payment gateway.

[JohnFromWIT]

It takes time to wrap your head around it.
The important thing to note here is, if you have your own wallet, no one can take coins out of it except you.
I'm not sure what virwox is, but when receiving coins you should receive them to a wallet not attached to another company.

[DannyHamilton]

Where are you located?

VirWoX is a very expensive way to convert BTC to local currency, and PayPal isn't a very good way to receive the local currency.

If you are not in the U.S. then you should look into BitPay.

If you are in the U.S., then you should look into BitPay, Coinbase, or BitSimple.

BitSimple will convert your BTC to PayPal for you.  Coinbase and BitSimple will transfer your local currency directly into your bank account.

It's not clear when you say, "THEN they do a Chrageback", who is the "they" that you are talking about?

Are you asking what happens if VirWoX does a chargeback? Or are you asking what happens if the person that gives you the BTC does a chargeback?

There are no "chargebacks" in BTC.  Therefore, the person that gives you BTC CAN'T do a chargeback.  There's no such thing.  That's a bit like asking, "I am just wandering if anybody was to walk into my store and hand me U.S. dollars to pay then put a Chargeback through with there Card Issuer and/or Paypal do I lose out?"

[boumalo]

Where are you loacted?

VirWoX is a very expensive way to convert BTC to local currency, and PayPal isn't a very good way to receive the local currency.

If you are not in the U.S. then you should look into BitPay.

If you are in the U.S., then you should look into BitPay, Coinbase, or BitSimple.

BitSimple will convert your BTC to PayPal for you.  Coinbase and BitSimple will transfer your local currency directly into your bank account.

It's not clear when you say, "THEN they do a Chrageback", who is the "they" that you are talking about?

Are you asking what happens if VirWoX does a chargeback? Or are you asking what happens if the person that gives you the BTC does a chargeback?

There are no "chargebacks" in BTC.  Therefore, the person that gives you BTC CAN'T do a chargeback.  There's no such thing.  That's a bit like asking, "I am just wandering if anybody was to walk into my store and hand me U.S. dollars to pay then put a Chargeback through with there Card Issuer and/or Paypal do I lose out?"

You said :"Actually I use VirWoX as I can cash out to Paypal

My fear is somebody pays me in BTC, I send the physical goods (not BTC) then they do a chargeback and I get fucked.

But if the sites have 3D secure I should be Safe(er)?

Thanks"
=>They won't do a charge back on Paypal since they didn't send any money to you Paypal account you did from your VirWox

The customers could ask for their BTC back or make claims to get it back but they cannot charge back; I don't know if the customers send the BTC to VirWox or to your own wallet, I would suggest to ask being paid directly to your wallet as DannyHamilton suggested

[FattyMcButterpants]

if they paid BTC, there is no third party (Virwox, Paypal) that could accept their claim. that is the beauty of BTC. once you are paid, you are golden.

[notlist3d]

Once they send you bitcoin's there is not a thing such as "charge-backs" in it.  Just make sure to see it get's conformations and they actually sent it.

[FattyMcButterpants]

we will see "BTC chargebacks" (note the quotes) when we see more centralized entities holding peoples' bitcoins for them. i think that is inevitable. off the blockchain, "BTC" may only be numbers on a ledger.

[TheJunkieMonkey]

Where are you located?

VirWoX is a very expensive way to convert BTC to local currency, and PayPal isn't a very good way to receive the local currency.

If you are not in the U.S. then you should look into BitPay.

If you are in the U.S., then you should look into BitPay, Coinbase, or BitSimple.

BitSimple will convert your BTC to PayPal for you.  Coinbase and BitSimple will transfer your local currency directly into your bank account.

It's not clear when you say, "THEN they do a Chrageback", who is the "they" that you are talking about?

Are you asking what happens if VirWoX does a chargeback? Or are you asking what happens if the person that gives you the BTC does a chargeback?

There are no "chargebacks" in BTC.  Therefore, the person that gives you BTC CAN'T do a chargeback.  There's no such thing.  That's a bit like asking, "I am just wandering if anybody was to walk into my store and hand me U.S. dollars to pay then put a Chargeback through with there Card Issuer and/or Paypal do I lose out?"

Thanks for the Info,

I am so new to this it is embarrassing.

I would rather have money in my account and the easiest way I thought was with Virwox to Paypal.

I am UK based so I will check out Bitpay in the morning

[DannyHamilton]

Where are you located?

VirWoX is a very expensive way to convert BTC to local currency, and PayPal isn't a very good way to receive the local currency.

If you are not in the U.S. then you should look into BitPay.

If you are in the U.S., then you should look into BitPay, Coinbase, or BitSimple.

BitSimple will convert your BTC to PayPal for you.  Coinbase and BitSimple will transfer your local currency directly into your bank account.

It's not clear when you say, "THEN they do a Chrageback", who is the "they" that you are talking about?

Are you asking what happens if VirWoX does a chargeback? Or are you asking what happens if the person that gives you the BTC does a chargeback?

There are no "chargebacks" in BTC.  Therefore, the person that gives you BTC CAN'T do a chargeback.  There's no such thing.  That's a bit like asking, "I am just wandering if anybody was to walk into my store and hand me U.S. dollars to pay then put a Chargeback through with there Card Issuer and/or Paypal do I lose out?"

Thanks for the Info,

I am so new to this it is embarrassing.

I would rather have money in my account and the easiest way I thought was with Virwox to Paypal.

I am UK based so I will check out Bitpay in the morning

With BitPay, you can accept bitcoins and have GBP direct deposited into your bank account with a 1% transaction fee.

If you are doing enough business to upgrade (more than 1,765 GPB per month in transactions), you can pay 17.65 GPB per month (instead of the 1% fee) for almost 5,900 GBP per month in transactions.

BitPay acts as a payment processor, and will work with you to integrate their interface into your system.

[TheJunkieMonkey]

Where are you located?

VirWoX is a very expensive way to convert BTC to local currency, and PayPal isn't a very good way to receive the local currency.

If you are not in the U.S. then you should look into BitPay.

If you are in the U.S., then you should look into BitPay, Coinbase, or BitSimple.

BitSimple will convert your BTC to PayPal for you.  Coinbase and BitSimple will transfer your local currency directly into your bank account.

It's not clear when you say, "THEN they do a Chrageback", who is the "they" that you are talking about?

Are you asking what happens if VirWoX does a chargeback? Or are you asking what happens if the person that gives you the BTC does a chargeback?

There are no "chargebacks" in BTC.  Therefore, the person that gives you BTC CAN'T do a chargeback.  There's no such thing.  That's a bit like asking, "I am just wandering if anybody was to walk into my store and hand me U.S. dollars to pay then put a Chargeback through with there Card Issuer and/or Paypal do I lose out?"

Thanks for the Info,

I am so new to this it is embarrassing.

I would rather have money in my account and the easiest way I thought was with Virwox to Paypal.

I am UK based so I will check out Bitpay in the morning

With BitPay, you can accept bitcoins and have GBP direct deposited into your bank account with a 1% transaction fee.

If you are doing enough business to upgrade (more than 1,765 GPB per month in transactions), you can pay 17.65 GPB per month (instead of the 1% fee) for almost 5,900 GBP per month in transactions.

BitPay acts as a payment processor, and will work with you to integrate their interface into your system.

Do you know if you can accumulate funds, for instance there maybe 1 or 2 months where I will receive more then  2k can I have those funds then deposit them over 2 or more months? I don't want to upgrade just for a couple of months

Or could it be I sign up with more then 1 account and then I can have 1765 multiplied by as many accounts I open or do they frown upon that? 

I can see they want paperwork etc sent over, is there any that are ok not to be verified?

[Harley997]

As long as the bitcoin tx has confirmations (the more the better), it is almost impossible to reverse it.

Remark: Theoretically speaking, it is possible with double spending, but the attacker himself need to have overwhelming hashrate (51% attack) or extreme luck (able to find a few blocks in a row by solo-mining with little hashrate).

Double spend attacks are very expensive to pull off. For low value TX as the OP is likely dealing in, it would likely be not worth it to attempt.

You do not need 51% to successfully pull off a double spend attack, you would only need that much hashrate to pull it off with a 100% success rate

[Velkro]

Bitcoin is great for sellers, Paypal is horrible for sellers