Re: TradeHill - Why we no longer accept Dwolla and an open letter to Ben Milne

Now, after your announcement that you will no longer use Dwolla for withdrawals, I am forced to stop using Tradehill as my exchange. I will have to move back to Mt. Gox. I absolutely refuse to use Paxum as a service due to their intrusive background information requirements.
Is there a reason why you chose to stop using Dwolla for account withdrawals? Its impossible for the end user (like me) to fraud Tradehill out of money when I am simply making a withdrawal. Plus, Dwolla is still ALOT cheaper to withdraw funds, its $.25 compared to Paxums $1.00.

I'm with CubedRoot on this one. I have USD stuck on TradeHill that I'll have to to trade back to BTC just to get it out and resell on MtGox, paying commissions again to both. I understand preventing inbound transfers, but by getting rid of outbound you screwed quite a few of us.

SteveFL,
Keep in mind also, that now, to get your USD from Tradehill all the way back to your bank it will now cost you $6.00!!!!! Using Dwolla this same set of transfers would have only cost you $.50.
I think its rather frustrating that Tradehill wont simply keep using Dwolla for Withdrawals since there is absolutley 0 risk in them getting frauded on withdrawals.

Wouldn't that mean tradehill would still need to keep an account with them with money in it? What if Dwolla would decide to reverse more transactions and take more money from tradehill? I'm not sure how it works just asking a question.

Sure they would need to keep an account open, but if that account is only used to send money to end users there is no chance of fraud. The fraud they faced was were an end user would send money from Dwolla to Tradehill, buy BTC, then file a dispute with Dwolla. Dwolla wouldn then refund the money to the end user, and debit it from Tradehill.
With the way I suggested, Tradehill would only use Dwolla to send money to its end users. This eliminates the risk of an end user doing what I described above since its not an option for funding your Tradehill account via Dwolla. It is impossible for an end user to fraud tradehill by getting money sent to them by Tradehill.