> > Yes, and unfortunately in my post I emphasized the credit aspect of the > system but failed to discuss the repudiation aspect. They might even > be orthogonal issues, though I don't see how an issuer could make any > money with a repudiable payment system that did NOT involve credit. It > seems like you would need the ability to collect interest charges. > > But just looking at repudiation, the issuer is faced with the following > two risks: > > 1. Customer pays for merchandise and then claims that he didn't > receive it. > > 2. Customer claims that he did not authorize a particular payment and > demands a refund.
That's not the way I would implement it. All you need is a regular e-gold account where the paid amounts will stay until the chargeback period expires, or the buyer orders a chargeback. Of course you need a database program to keep track of everything. If the chargeback period expires without complaints, the e-gold sitting in the system account is paid out to the merchant (minus the fees charged for the repudiable e-gold service of course) and actually becomes simple non repudiable e-gold at that moment. For example Merchant offers a book for sale on his site, and you can pay with repudiable e-gold with a chargeback period of 15 days (merchant can choose the period), you can also pay with non repudiable e-gold at a slightly lower price. Customer, who has an ordinary e-gold account, decides to buy this book, but because he doesn't know the company he decides to pay a little extra and use the repudiable option to make sure he is not running into a scam. He spends the amount of e-gold into the repudiable system e-gold account (the software will keep track of amount paid , chargeback period, customers e-gold account number, and the merchant's name and e-gold account, etc...), and the merchant is notified of this order. Now either no chargeback is done during the 15 days period. In that case the e-gold is spent from the system account into the merchatns e-gold account. Or the customers does a chargeback. In that case the e-gold is spend from the system account back into the customers e-gold account. As you can see there is no need for credit anywhere in the system. Money is made by an extra fee charged on the transaction. Case 2 you mention won't happen because the customer initiates an e-gold payment into the system account himself. Case 1 is exactly the same as the creditcard fraud we know already. Usually the merchant will calculate the cost of this creditcard fraud into his prices, and that's why we are paying up for the cheaters when we are using repudiable payment. But hey, if you don't like that, you can choose non repudiable and pay less but bear the risks. It's totally fair. The creator of such repudiable e-gold system can decide whether he wants to offer a customer dispute service or not. The competition (creditcards) doesn't offer much in this regard either, chargebacks are granted without proof of nondelivery given by the buyer. Regards, Danny --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
