[clip for brevity]
What Zinc did (GAW proposes to do) is interpose a middle-man. The middle-man takes your Bitcoin/Paycoin and converts it into fiat, then the middle-man makes the purchase on his/her own account but putting your address in as the shipping address. The "man in the middle" approach creates lots of problems that Amazon, Walmart, etc. will NEVER want to deal with: returns, customer service, shipping issues, etc. all have to be handled through the "man in the middle". While the customer does not realize there is a "man in the middle" and gets mad at the online retailer... so that is why the TOS of every major e-commerce company prohibits this type of thing. It is not what Paypal does, nor what Paypal ever did.
Someone needs to explain the diffrence between a middle man and a Financial exchange or a financial service provider. GAW is definetly not registered as a Financial exchange right now. But If there going to do business as a financial exchange in the US they need to register and make it legit as GAWCEO would put it.
There are five "roles" and its good to keep them separate, though they can overlap if one party carries out more than one role (Paypal - see below):
(1) Customer who wants to buy something.
(2) Retailer who wants to sell something to Customer.
(3) Man in the Middle - a person or entity who purchases directly from Retailer and pays Retailer in fiat, and takes XPY/BTC from Customer
(4) Payment Processor (Paypal, Visa, etc.) -- an entity that allows an Account Holder (which could be Customer or Man in the Middle) to make a payment to a Retailer via a line of credit or debit from banking account.
(5) A Financial Institution - issues a line of credit and/or holds funds in a banking account for another party (Customer or Man in the Middle). In the case of VISA/Mastercard etc. they are linked to Payment Processor via complex agreements. NOTE that Paypal is in most cases BOTH a Payment Processor AND Financial Institution (part of the genius of Paypal).
Okay, with the definitions in place consider the two different scenarios when Customer purchases an item from Retailer:
SCENARIO A: Zinc/GAW's Man in the Middle
Takes BTC/XPY and order information from a Customer;
Submits order **under the Man in the Middle account** with Retailer, but specifying Customer's shipping address for order;
Pays Retailer in fiat;
Retailer ships to shipping address which happens to be Customer address;
Any returns or customer service issues must be handled between Retailer and Man in the Middle, since Retailer has no idea who Customer is except as a shipping address.
Note that Man in the Middle likely uses a Payment Processor to facilitate payment, but the Payment Processor account will be in the name of the Man in the Middle also.
SCENARIO B: Purchase Made Via Payment Processor
Customer submits order directly to Retailer on Customer's own account;
Customer pays for order using Payment Processor;
Retailer and Payment Processor have a long, complex agreement that allows Retailer to accept Payment Processor services and typically includes things like forcing Retailer to agree to reversal of transactions (chargebacks), dispute resolution in the case of a chargeback, information security requirements, prohibition on certain types of sales, maintenance of commercial banking accounts for chargeback purposes, etc.
Payment Processor issues credits to Retailer account at the Retailer Financial Institution, and debits Customer's account (line of credit/bank account) at the Customer's Financial Institution.
Retailer ships items to Customer and handles customer service issues, returns, etc. directly with Customer.
