>
> In your "timed-release payment escrow" system, what if the customer
> fraudulently claims he did not receive the goods?  It seems that the
> merchant would necessarily absorb this loss, since there is no other
> entity (e.g. the credit card company) to absorb it.


It's the same as a fraudulent creditcard chargeback. The merchant eats the loss
(something he has calculated into his prices anyway).
If you know a creditcard company that absorbs the losses for your chargebacks,
please send me their address.


>
> Of course, the merchant could always ship the merchandise with
> confirmation of receipt requested, and that might help as long as the
> merchant could use that receipt to preempt any possible chargeback.


As long as you publish the user statistics on your site, both for the buyers and the
merchants, the fraud will be kept in check.
As a merchant you can see if your new customer is doing far above average
chargebacks (in % of transaction amounts).
As a buyer you can see if the merchant is to be trusted. If a high number of
chargebacks is done against him, chances are he is a fraud.
Pretty quickly the frauds will have effectively disqualified themselves from your
system.




>
> I probably don't appreciate the need for repudiable payments as much as
> others, because I tend to deal with established trustworthy merchants


Well, with repudiable payment you can safely buy from merchants that are not
trustworthy too.



Regards,

Danny




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