Quote:
Originally posted by Chris Mallick
OK, really, the last post, but a simple and fair question that deserves an answer (although I thought it had been answered).
Spacemonk: The answer in your example is ?Yes? and in a few days, not 180 DamageX.
Your account may not be closed as a result of getting a payment from one fraud transaction, in your narrow example, just suspended. In that case the $50 is returned to the CC up the chain, no matter how far we have to go back; the $1000 is either left for your reactivated account or it is wired back to you or a check is mailed or UPS'd, depending on what you want.
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Interesting how You managed to solve the problem banks wordwide are trying to solve for AGES which is the very reason for "know Your client" idea used worldwide.
How can You track 50$ up to the chain? Lets say I got legitimate 50K on my account and I get 50$ from someone I dont even know. Then in 1 minute I send 50$ to a friend of mine for lets say 5 porn pics and You block my account. How on earth can You prove that I've sent the SAME 50$ which were stolen?
You cant. And no-one can.
That is why in the offline cash world police does the same stuff worldwide - they mark the actual dollar bills (ever seen that in the movies?) or copy their numbers.
And in non cash transactions that is not possible and is the sole reason for the "know Your client" banking policy, because banks can not be sure of the source of the funds and thus have to verify the client.
Quote:
Originally posted by Chris Mallick
To help you all understand, here is a short version of our business model: We make money when funds are loaded, or sent in a P2P transaction. Therefore, we are fully driven towards use and functionality for you, our cardholder. We do not charge a monthly fee or a Use Fee, like many other cards. We do not make money on float (funds held in accounts), ePassporte funds that are loaded on to your account are not within our control; rather a trust bank holds them waiting for a call from Visa Interchange or the cardholder at an ATM or you asking for a wire, then the cash is moved to cover that transaction.
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It would be illegal for Your company to earn money on "float" because Your company does not seem to have an actual banking license nor financial license.
"ePassporte funds that are loaded on to your account are not within our control; rather a trust bank holds them", this I beleive is illegal as well since You operate without a banking license. In fact Netherlands Antilles (Curacao where E-Passporte is registered) law is in general very similar to a certain extent to the Dutch law.
By dutch law if it would happen in Netherlands Your operations when You freezed the funds would qualify as a violation of article 82 of the Act on the Supervision of the Credit System 1992 ('ASCS 1992') .Pursuant to article 82 it is prohibited for any natural person or legal entity to invite, receive or have, in the course of his or its occupation or business, repayable funds on demand or subject to notice being given from the public. In this respect it is also prohibited to act as an intermediary for the purpose of inviting or receiving from the public such repayable funds on demand or subject to notice being given.
Which essentially means that You can not really freeze the funds on their way when You pass them because than they will be considered "repayable".
Your agent bank can do that, providing that there is visible legal relationship in between Your client and the bank or You can send all of them back to their respective senders, but by dutch law You can not keep them longer than 5 working days.
But as for Netherlands Antilles law to be honest I dont know but because these two jurisdictions are quite similar I would expect the same or similar legal restrictions.
You might want to have a legal opinion of Your lawyers into that before doing such stuff as freezing accounts because Damcash theoretically as well as all other account holders may really as You said Yourself actually go to court and claim damages (Ironically just as Your own company Paycom-Epoch is suing FDC with the sole exception that FDC IS a bank unlike E-passporte).
As for St.Kitts Bank I beleive Motos did not mean the bank itself but rather the whole region which has been removed from the official FATF black list of non-cooperative regions and countries only in 2002 with a notice that it will be watched on "closely".
FATF stands for Financial Action Task Force which is the main guide for banks wordwide in relation to whom to work with.
Russia is still there though. :D
On the other hand 140 Million population of our country with even our own Forbes edition (main editor shot dead unfortunately though :D) is a bit more than a tiny island in Carribean.
Which in essence reminds me of a joke in "Mean Girls" when a Japanese school girl in an American school being mad on her Chineese girlfriend says "YOU NIGGA!!!".
:D