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From: <[EMAIL PROTECTED]>

> http://planetgold.com
> 
> another "must-read" interview!

Eric Gaithman casts a critical eye on dollar-based payment systems
such as PayPal, E-Money Mail, C2IT, and Ecount.  I understand the
problems with PayPal, but was not aware of any problems with c2it and
ecount.

Eric says that all of these payment systems fail to complete due
diligence on their credit card orders.  I'm not so sure about that. 
When I fund my Ecount, I must pass two tests:

1.  I must use a credit card with the same billing address as the one
used with the online account.
2.  I must supply the 3-digit "CVC2" number on the back of the credit
card.

If someone physically steals my credit card, test (1) will prevent
them from using it with an arbitrary Ecount.  Also, Ecount will not
allow them to create a new ecount with the same billing address as
mine.

If someone merely grabs my credit card number, but I retain physical
possession of the card, then test (2) prevents them from using that
card number because they don't know the CVC2 number.

I don't see the problem with ecount.  Perhaps Eric could illuminate
the dangers a little more specifically.

Also, Eric did not mention Yahoo PayDirect as a credit card scam
problem.  Are they somehow more stringent than ecount, or would you
consider them a risk too?  Are ALL credit-card funded payment systems
just inherently "scam attractors"?

- -- Patrick

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