Quote:
Originally posted by Bobo
Gotys and friends?
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Not sure, but it was a cool scam - it only took about 3 days to get the money, so PayPal were totally unaware until a while later.
Really, when PayPal started, they had no real fraud prevention measures to speak of, and it was probably the one thing that was going to bring them down had they not been able to do something about it.
However, if they had of been as careful and as strict as they are now, they probably never would have gained critical mass. The limits on how much you could send before you were verified etc were much higher previously so you could pretty much create an account and start using it - no waiting to verify your credit card etc.
Without that ease - people wouldnt have bothered. As there customer base grew (which it did exponetially) they were able to start bringing in harsher rules as there were enough other people already using it to make it worth the hassle.
Thats the problem all these new guys face today - PayPal isnt expensive so price competition is going to be very hard and from what I have found in looking at and trying to use them all, they are all much harder to make into a functional system, and they avoid credit card use like the plague - which consumers if they are smart will hate as it prevents the ability of a chargeback incase of a bad transaction.