Re: TradeHill - We now support deposits and withdrawals of funds via Paxum.
Regarding reversals - here is the exert from our terms of service regarding this.
(e) User acknowledges and accepts that in case of any Transaction disputes, Paxum presumes that all Transactions by User are authorized by and are the liability of the User;
(g) User agrees that all Transactions initiated are final and not reversible;
(i) User agrees that any disputes that arise between Users are not the responsibility of Paxum;
That doesn't answer the biggest question: If I receive a payment through Paxum, under what circumstances, if any, will Paxum want me to give them back the money? In other words, what happens to the recipient(s) if the transaction into Paxum is reversed?(e) User acknowledges and accepts that in case of any Transaction disputes, Paxum presumes that all Transactions by User are authorized by and are the liability of the User;
(g) User agrees that all Transactions initiated are final and not reversible;
(i) User agrees that any disputes that arise between Users are not the responsibility of Paxum;
If Joe puts $1,500 into Paxum and then sends $1,500 to Jeff, and then Joe reverses the $1,500 payment to Paxum (claiming fraud or whatever), is that considered one of the "disputes that arise between Users" that Paxum takes no responsibility for? Or does Jeff keep the money and the dispute is between Joe and Paxum (since Joe breached rule 'e' above)?
I get that you take greater authentication steps than Dwolla does and that there should therefore be less fraud. But the big question is still -- ultimately, if there is fraud or alleged fraud, who eats the cost?
The ONLY time we will take funds from your account that you received from someone is if it is flat our blatant fraud on your end. If the user who sent you money is able to do an chargeback on the ACH they sent us that is on us.
The steps to get approved for ACH and then to request and ACH provides enough paper trail/proof that the account owner authorized the ACH so a charge back is VERY unlikely to take place and if it does it will more than likely get denied.
When we first had ACH we felt the same fraud that most do with ACH but we quickly worked to put steps in place to limit fraud attempts
Joe Blow will not be able to sign up for an account photoshop an ID and request and ACH. It just wont happen :-) If we feel their is ANYTHING fishy going on I'll request you take a picture holding your ID smiling pretty for me
We are that serious about fraud protection.Hope that clears it up sum