Post
Topic
Board Bitcoin Discussion
Re: Buying Bitcoins - Why is Dwolla/Paxum middleman required?
by
JoelKatz
on 29/07/2011, 19:51:59 UTC
The only advantage I see is that Dwolla and Paxum can accept ACH.  Why can't an exchange set this up directly?
Fraud. ACH transactions can be reversed weeks later with a claim that the owner of the account didn't authorize the transaction. The middle man confirms that the transaction is authorized by the account holder, handles the ACH disputes, and eats the cost if it turns out the transfer was fraudulent.