On 3 Aug 2003 at 0:34, Bill Stewart wrote:
> Paypal gave people who wanted to occasionally sell things on
> the net a way to receive payments online, quasi-immediately, 
> without going to the major hassle of becoming a registered 
> credit-card-accepting business,

There is a big problem in that "quasi"

Because paypal payments are reversible, Paypal finds itself
very reluctantly in the business of arbitrating disputes, a
potentially expensive and unpopular business which it does very
badly indeed.

The integration with Ebay was intended to reduce this problem,
since ebay does rather well at arbitrating disputes, but
paypal's arbitration is still universally loathed.

If your business model sticks you with performing arbitration,
you find yourself up against the credit card companies, the
eight hundred pound gorilla of arbitration, who do it well, and
more importantly, do it a lot cheaper than you can.

This provides a strong argument for making your payment service
truly irreversible, that is to say, Chaumian. 

         James A. Donald

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