Quote from: rjk on July 19, 2012, 08:47:58 PM

Isn't this where Bitinstant steps in with a pre-made Greendot intermediary, all set up and ready to go? Yessir, all wrapped up in a tidy package for you, they will take the Moneypaks, and send you an ACH to disburse to your customers as you see fit. For a fee, of course. Wink

If not them, someone needs to do it.

I don't think so. In our talks with GreenDot they simply prohibit anything to do with Bitcoin even indirectly. We spoke at length with a sales agent. At first he was skeptical of the demand. I indicated we would be looking at hundred grand the first month and probably double that (as FC4B is supply limited). When he seemed to indicate we were unrealistic I offered to open our books subject to an NDA. I was also willing to guarantee 5000 transactions in the first 90 days and pay GreenDot the difference (i.e. up to $25,000) if they didn't materialize. I think I made the offer as generous as possible even indicating we would consider things like a discount rate (MoneyPak merchants normally don't pay a fee), a fraud reserve (depsite MoneyPak being sold to merchants as a low risk option), and limiting our acceptance to $250 or less per Pak (to give GreenDot a bigger cut). We went back and forth but GreenDot is just completely adamant (and unreasonable IMHO) about having absolutely nothing to do with Bitcoin. Period. We were even "creative" looking at potential solutions where MoneyPak would be use to fund a "cash card account" which then could be used to buy digital goods (to include bitcoins). Nope. They aren't interested. If Bitcoin is anywhere in your proposal (even in the small print at the bottom) it is an auto-rejection. I think I convinced the sales agent though. Bitcoin is going to move mainstream and companies which embrace that (like ZIpZap) will profit indirectly and companies that don't (like GreenDot) will be shut out.

Now we (or someone else) could form a shell company, lie to GreenDot about the purpose of the merchant account (selling golfballs or whatever) then use that company to funnel Bitcoin sales. We have no interest in that and I am sure BitInstant doesn't either. GreenDot merchant agreement also prohibits third party transactions so we won't be seeing a general purpose TrustCash or ZipZap type middle man for GreenDot MoneyPaks.

It is their loss but sadly it did waste a significant amount of our time. It could have been extremely profitable for both us AND GreenDot.