Anyone here experienced a chargeback for P2P with KYC before?

[pornflixandchill]

hi guys, i want to know if implementing KYC will prevent a scammer buyer from requesting a chargeback?

So far, my experience selling and buying on Binance has been good.

What happen if a scammer decide to do a chargeback?
I hope Binance will give KYC to us and we report it to relevant authorities.

[1714749186]

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[1714749186]

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[mk4]

A chargeback would probably just result into the person him/herself getting banned from the platform, but really unlikely that authorities would be involved unless were talking about hundreds thousands of dollars worth of money.

You gotta watch out even if the exchange has KYC, especially when talking about PayPal transactions whereas chargebacks are really really common.

[bL4nkcode]

If you're refering on p2p transactions on binance, providing/implementing KYC doesn't protect you from chargeback since payment with fiat is held on third parties, and the seller/buyer can request chargeback using the payment he/she used if applicable.

But you can report it to binance I don't know if what steps they will make since I didn't heard yet for such issue but a ban on the platform is highly possible.

[pornflixandchill]

Anyway, lots of merchants and gambling sites are using paypal and skrill, and i'm sure they experienced more chargebacks too.

[sheenshane]

AFAIK, when someone executes a chargeback in every transaction in Binance it will surely lock your account for several days for further verification.

Binance has a safety feature like having chargeback fraud protection through a Simplex partnership that enables credit card payment.

What is Simplex?

Simplex processes credit card payments with a 100% zero fraud guarantee – in case of a chargeback, the merchant gets paid by Simplex.

Aside from the scammer's lock account if he decided chargeback, your also protected by a third party as mentioned above they usually held the payment in third parties. Be careful always having transactions with fiat because that is reversible not like crypto is irreversible once confirmation was done.
You're might safe at Binance.

[joniboini]

I hope Binance will give KYC to us and we report it to relevant authorities.

Even if the platform decided to help you, I doubt they'll do that. Best case scenario is they will help you report the scammer and return your funds, or process your problem with the payment processor that they use.

Giving KYC data to other customers is not a good practice, pretty sure government would question their decision later on.

[pornflixandchill]

Chargeback experiences make me worried after reading all the stories,
but if big companies like eBay are accepting PayPal, then why should we honestly, even as the smallest merchant, even worried about it?

[Welsh]

No, however I've heard of from others that this can actually be pretty common on small amounts. Usually, exchanges have quite restrictive limits on payment systems that can be chargedback, and therefore the fees are set accordingly, and the exchange, and people tend to do as much as they can to persuade you not to use them. So, this does protect larger amounts from being stolen, but I do think some people will look to charge back even if its a small amount, and you should avoid using anything that can be charged back as much as possible.

Don't assume that because someone has linked their ID, they won't scam you. Its better to be cautious anyway.

[Darker45]

hi guys, i want to know if implementing KYC will prevent a scammer buyer from requesting a chargeback?

So far, my experience selling and buying on Binance has been good.

If you are referring to P2P trading on Binance, I'm afraid KYC does not and cannot stop the buyer from requesting a chargeback as it does not anymore involve Binance. If the buyer has already confirmed payment and you verified it yourself with your preferred payment option and send the funds from your end, the deal must have been deemed completed.

Anyway, just to minimize the risk, it is always best to deal with P2P traders who already have a lot of orders and have 100% completion, especially if it involves large amounts.

What happen if a scammer decide to do a chargeback?
I hope Binance will give KYC to us and we report it to relevant authorities.

I don't think Binance is legally allowed to divulge personal information of a trader to a fellow trader. But they will definitely do so to legal authorities. I guess it will have to pass through a request coming from a legal authority.

[OmegaStarScream]

hi guys, i want to know if implementing KYC will prevent a scammer buyer from requesting a chargeback?

So far, my experience selling and buying on Binance has been good.

What happen if a scammer decide to do a chargeback?
I hope Binance will give KYC to us and we report it to relevant authorities.

I'm not sure about Binance, but IIRC, in paxful, they would give you the IP address (registrations and logins), and email but that's obviously not going to help you with much.

Chargeback experiences make me worried after reading all the stories,
but if big companies like eBay are accepting PayPal, then why should we honestly, even as the smallest merchant, even worried about it?

AFAIK, exchanging cryptocurrencies is against their terms of service. You shouldn't expect them to help you if you ever get scammed. I'm not sure if something has changed after this though.

My advice to you would be to simply try and find multiple traders with a lot of trust feedback. That way, you can trade small amounts with multiple people, and reduce the risk of losing all of your money.

[Findingnemo]

hi guys, i want to know if implementing KYC will prevent a scammer buyer from requesting a chargeback?

So far, my experience selling and buying on Binance has been good.

What happen if a scammer decide to do a chargeback?
I hope Binance will give KYC to us and we report it to relevant authorities.

Binance isn't p2p so you are not going to face chargeback issues while trading there.

Chargebacks are happening too often on paxful,LBC where KYC becomes mandatory to eliminate scammers but still it is not going to prevent scammers, only you have to choose the trader you are going to deal with wisely.

[OmegaStarScream]

Binance isn't p2p so you are not going to face chargeback issues while trading there.

-snip-

Binance does have a P2P platform: https://p2p.binance.com/

It's not as good as their CEX though and I don't think it's comparable to Paxful or LBC. It has way less liquidity, and it only supports a few countries.

[Findingnemo]

Binance isn't p2p so you are not going to face chargeback issues while trading there.

-snip-

Binance does have a P2P platform: https://p2p.binance.com/

It's not as good as their CEX though and I don't think it's comparable to Paxful or LBC. It has way less liquidity, and it only supports a few countries.

I know the existence of binance dex but totally forget about their P2P.Just now I check the trading volume and it is lot less for most of the countries and also the prices are too much premium from the current market price so people may not get better deals there and also the answer to OP is KYC is not going to save you.

[Welsh]

I don't think Binance is legally allowed to divulge personal information of a trader to a fellow trader. But they will definitely do so to legal authorities. I guess it will have to pass through a request coming from a legal authority.

I believe the appropriate action would be taken, i.e reporting it to the police. However, I'm not familiar what jurisdiction this would take place. Its almost certain, that Binance wouldn't be able to divulge any information to any of its users to another user of the platform, even if there's a legitimate claim for fraud or theft. It would need to be handled by the the appropriate authorities. I believe, this would be passed onto the police department that has jurisdiction where the company is residing, and may potentially be handed over the the infringing users jurisdiction.  Although, I might be wrong there. It becomes tricky with exchanges which don't have any physical residence, maybe possibly where the owner of the company resides then.

[Findingnemo]

I don't think Binance is legally allowed to divulge personal information of a trader to a fellow trader. But they will definitely do so to legal authorities. I guess it will have to pass through a request coming from a legal authority.

I believe the appropriate action would be taken, i.e reporting it to the police. However, I'm not familiar what jurisdiction this would take place. Its almost certain, that Binance wouldn't be able to divulge any information to any of its users to another user of the platform, even if there's a legitimate claim for fraud or theft. It would need to be handled by the the appropriate authorities. I believe, this would be passed onto the police department that has jurisdiction where the company is residing, and may potentially be handed over the the infringing users jurisdiction.  Although, I might be wrong there. It becomes tricky with exchanges which don't have any physical residence, maybe possibly where the owner of the company resides then.

Exchanges are not going to report it to the police until the trader itself take legal actions against the fraudsters and in case of any assistance need for the legal actions they might help but most of the time they are not going to hear the single users words.

[PrimeNumber7]

As an individual, there is little you can do with someone's KYC information. You are pretty much limited to going to the police or posting your story online to warn others about the person.

There is no guarantee the KYC information actually belongs to the person you are dealing with, so the threat of getting the police called or getting doxxed may not deter all scammers. If you are using Binance's P2P platform, you are relying on Binance's procedures.

[Darker45]

I don't think Binance is legally allowed to divulge personal information of a trader to a fellow trader. But they will definitely do so to legal authorities. I guess it will have to pass through a request coming from a legal authority.

I believe the appropriate action would be taken, i.e reporting it to the police. However, I'm not familiar what jurisdiction this would take place. Its almost certain, that Binance wouldn't be able to divulge any information to any of its users to another user of the platform, even if there's a legitimate claim for fraud or theft. It would need to be handled by the the appropriate authorities. I believe, this would be passed onto the police department that has jurisdiction where the company is residing, and may potentially be handed over the the infringing users jurisdiction.  Although, I might be wrong there. It becomes tricky with exchanges which don't have any physical residence, maybe possibly where the owner of the company resides then.

Exchanges are not going to report it to the police until the trader itself take legal actions against the fraudsters and in case of any assistance need for the legal actions they might help but most of the time they are not going to hear the single users words.

Exchanges will probably not report individual cases involving their users to the police. Those users themselves should be the ones who will initiate legal actions, and the proper authorities acting on it will consequently request vital information from the exchanges by way of a court order most probably. I am not an expert but I think even the police cannot just demand personal information of any user from exchanges. It will have to pass through the courts. 

[Findingnemo]

Exchanges will probably not report individual cases involving their users to the police. Those users themselves should be the ones who will initiate legal actions, and the proper authorities acting on it will consequently request vital information from the exchanges by way of a court order most probably. I am not an expert but I think even the police cannot just demand personal information of any user from exchanges. It will have to pass through the courts. 

For sure it is going to be a long process to gather information about someone who committed scam.Crypto exchanges are working from different country from the origin of the crime so the powers of police and their investigation varies or they don't even have any control to investigate as well.