Accepting Bitcoins also allows merchants to avoid much of the administrative overhead, like dealing with chargebacks, that come with a conventional merchant account.
Companies doing business and accepting payments globally are subject to increasing fees and sometimes arbitrary chargebacks which no doubt impact their bottom line.
Transactions such as chargebacks and returns are more expensive to process and retailers may be susceptible to paying higher fees should they experience a high percentage of chargebacks.
To facilitate large-value transactions and to assist in returns and merchant chargebacks, Balanced intends to add an option for bank ACH credits and debits as a payment choice in the near future.
Sadly, even though Balanced see themselves in an escrow role for buyers and sellers, that is where it ends because they still depend on transactions and chargebacks flowing through the monopolistic credit card networks.
The 50% cost reduction in Simpana 10 is due to workflow automation, parallel deduplication using a grid-based architecture as well as customizable web-based reporting and services to support multi-tenancy access, self service operations and chargebacks.
In managing the funds collection and funds transfer, Balanced will maintain funds in an escrow account for the marketplace to settle with merchants and the marketplace will be responsible for any chargebacks and collecting information from merchants.
Many practitioners had expressed concern about the requirement to report gross receipts paid out without regard to chargebacks, fees or other adjustments with many worried that such discrepancies would raise flags at IRS. Future guidance on this issue is expected to be released.