Here is a way RC24/7 can make money dealing with this problem. I took this from a post in another forum. The problem there was who took the hit from a loss in transit, but the same system would work with fraud issues:

At the very least this site needs a default rule: If the goods have in fact not reached the buyer in 30 days, seller must refund the money. Then sellers will factor the cost of any shipping insurance and delivery receipt in the sale. Further, upon complaint of a buyer alleging non delivery, absent proof of delivery by seller to rc24/7, rc24/7 should have the right to charge the sellers credit card or paypal account the sums due buyer for the refund. Rc 24/7 keeps 10% as a collection fee. End of bad guys. Money in hands of RC24/7, and buyer is 90% restored. All good eggs feel better about using this site.

It would be a default rule. Buyer could elect to trust and take the risks when he has confidence in his seller. Good sellers prosper, while the crooks look for some other means to ply their trade.

Of course the % could be shifted. Seller could be tabed for the $paid plus 10% for RC24/7.

Here's another idea: All members (per force the rules of membership) agree to resolution of the dispute by binding e-arbitration. The disbursal of the moneys follows the arbitrators award. This would be an economical way of resolving the smaller disputes, say, where the issue involves less than $500.


How say you rc admin? What do you think, propwobble?