Quote from: PaxumChris on July 28, 2011, 09:30:45 PM

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

Sounds like you guys have the ACH thing (which I heard of for the first time several days ago) figured out somehow. But also that you know something about the business. So, a quick question:

Could one:

1) limit ACH transfers in to, say, $1000

2) specify a charge for an ACH reversal fee of $1000 or less at your digression?

That seems like it would be a pretty bullet-proof way to avoid this type of fraud and also allow legitimate reversals if there are not pesky banking regulations which would interfere with the strategy (and I suspect that there are.)

The cool thing would of course be that people who were not doing reversals would be un-impacted and not (necessarily) forced cover the risk as there should be none.