BTC is a paypal killer.
Don't see how paypal could "integrate" bitcoin into their payment system without adulterating bitcoin.
What we are witnessing are desperate attempts at survival for dying payment legacies - credit cards will be next.
Soon to be: chargebacks with bitcoin credit cards ---___---
Isn't BTC credit card a contradiction? It's a BTC Debit card.
I had talked about this before and every seller should be able to pay an additional fee of 1% to prevent all unauthorized transactions. This will solve 99% of all chargebacks. PayPal then calls up the buyer and verifies the buyer made the transaction. Seller has absolutely no responsibility for unauthorized transactions. Seller still has to deal with "not sending disputes" and "description not matches."
But the majority of scams are the unauthorized.
I would say that unauthorized scams are that way because it is simply the easiest. It requires the least amount of proof and the least amount of work. If this kind of feature were to be implemented then we would likely see other types of dispute scams.
I would also argue that paypal would likely charge more then 1% for this kind of feature. They would need to keep an audit-able log of each time they talk to someone. I would say that it would take, at minimum 5 mines for the agent to verify that they are in fact speaking to the customer and verify that the customer authorizes the transaction. I think that most paypal transactions are relatively small (<$100) so I don't think that paypal would want to be making this little on something that cannot be done with automation.
Another issue is that I believe that the FCRA (fair credit reporting act) allows people to dispute credit transactions after the fact. If a customer was to successfully dispute a transaction that could not be reversed to the seller then paypal would have to take the loss.
You're right. It would definitely be more than 1%. I'd think of it more like Unauthorized Protection - But like you said other disputes require more work and don't have as high chance of winning. I'd say the system would be better overall.
Whole process can be automated pretty easily.
1. Email verification can be automated. Lots of scammers don't have access to PayPal email.
2. Phone verification. Text to phone. Done.
3. Security questions. The ones you need to pass when signing up for Coinbase. If they fail, seller can make decision whether to proceed.
Coinbase already does all these and I never spoke to Coinbase once on the phone.
TADA! All automated and much safer. After "authorization" is established it's actually pretty easy if they have eBay username. You can just go by feedback.
Regarding the whole unauthorized transaction situation, I think it's ridiculous the seller should ever be liable for unauthorized transactions because PayPal has all the information to do this verification not the seller. (Including IP addresses.)
