Possible methods to make a trading site not have chargebacks

Well I'm trying to figure something out, and I'm sure some of you may have some ideas. Please note that this idea isn't necessarily for Sythe, because I doubt they'd implement something like it (as it's on the DNS list).

Let's say a trading forum had it's own currency. You buy the currency from one page on the site, then can freely trade that currency to other members, then those members can cash out, and the site pays them when they cash in their currency. A method like this would protect all traders against chargebacks, the only problem is then the site is liable for chargebacks.

Are there any good ways around this? The only thing I can think of currently is to only accept Bitcoin, WU, and mail to sell currency, but a lot of that has to be done manually and isn't very efficient. Another way I was thinking was Google Checkout since they protect sellers, but it looks like they're closing their doors shortly.

Anyone have any ideas on how a site selling currency could do it, without facing any risk of chargebacks?

 

[Busta305]

Risk of chargebacks will always exist no matter what when Visa, Mastercard, etc are involved in any payment processor. Only way this will work is with something like a 10-15% fee to help cover chargebacks. Also Google Checkout didn't protect all sellers, only those who shipped physical items with signature confirmation, which is also true with PayPal if you sell physical items.

 

I guess what I'm really asking then is what are some ways to accept payment that can't be charged back? I know Bitcoin and WU, but is that really it?

 

[LoLSmurfin]

Realistically, yep. The only other way would be to create your own currency for the site like you mentioned, and then you'd just be the one liable for chargebacks.

 

[Busta305]

I guess what I'm really asking then is what are some ways to accept payment that can't be charged back? I know Bitcoin and WU, but is that really it?

Anything that involves and credit or debit card can be chargedback, only way this will work is like I said, is with a 10-15% fee and Richard willing to do it.

 

- Dwolla
- Bitcoin
- WU
- Moneybookers (not 100% chargeback free but much more secure than PP)
- Moneygram
- Moneypak (Near 100%)

As Busta said, most of these pay methods make it nearly impossible for the average user to partake in the market. This idea has been implemented already anyways, it's called PlayerAuctions. You will be tight pressed to compete with them.