Selling bitcoin FAQ

How to make sure trading is secure to prevent scam and fraud?

1552 views April 29, 2017 May 25, 2017 ray 17

Secure your Account and Trades for Vendors

Using 2Factor Authentication is a MUST for vendors on both login and send out as well. Please read our security guide first. Once you secure your wallet you must begin the hard work of learning to secure your trades. Every payment option has different risks and things you must check for. For example,

  • PayPal accounts of buyers should be verified and you should always ask for a selfie with ID to make sure it is not a hacked account. It is advised to confirm balance in the PayPal account first to prevent credit card fraud. Many vendors will call PayPal first and tell them they are using their account to sell bitcoin,¬†the vendor’s account should also be verified. Keep in mind that there can be chargebacks with PayPal and they¬†usually side with the buyer by default. This is why you need sufficient evidence that the trade terms were agreed as bitcoin transactions are irreversible.
  • Amazon / Itunes Gift Cards should also come with a receipt showing they were purchased with cash and not a debit card, otherwise they can be charged back and you will lose the credit and possibly get your Amazon or Itunes account shut down. Make sure that the cash receipt matches the card as well and of course ask them to upload the back of the card scratched off. Always use the gift card right way or else they will!
  • Bank Cash deposits should always ask for a copy of the receipt showing it was done as cash. Beware because certain banks like BOA allow them to take the cash back if they have the receipt for one business day.
  • There are many more ways to pay and each has its own rules.

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