A few friends of mine are involved in a startup that works with local companies to set up ecommerce systems, and I had an idea to link up with their service, and set up a bitcoin point of entry. My idea involves doing on-the-fly price conversion of products, and taking bitcoins in the value of the item based on the current exchange rate. I would then automatically trade them with the lowest ask at mtgox (and future distributed peerfinders). Last, I would place the order with the seller, and use a credit card tied to an account with a moderate amount of capitol to fund the order, effectively making the transaction from a to b instant. My payout as the middleman would probably be something very small like 1% in btc. I just want the service to exist, and get a little passive income.
I'm aware that I need to figure out a better fraud protection, but unless someone can convince me otherwise, I'm not too worried about double-spending at the moment. With enough startup capitol (scalable), I can easily cover the gap from when I need to give money to the seller, and when I would receive money from the exchange.
I'm unclear about the legality of what I'm doing. If by ordering a product and facilitating a transaction, I am a middleman. Does the fact that I'm working with bitcoins mean I'm a money changer? What sort of tax laws am I stepping into? If this is he kind of question you usually pay someone experienced to answer, I'm open to suggestions for avenues, as well as incentive in btc for expert advice. Thanks all