From the FAQ:
Because Bitcoin transactions are widely anonymous there is a need for trustbuilding measures like our escrow system. Thereby Bitcoins are only transfered to the vendor if you have set the order as received or have given a positive rating. Thereby potential fraudsters have no chance of success.
Sadly it means the customer is always right. So if the customer says "nope I didn't get it", then they get their money and the product. Similar to how paypal works really.
Paypal provides a mechanism for the merchant to show proof of delivery. Generally, if you use UPS or Fedex, all you have to do is forward them delivery confirmation or the tracking number, and they free up your funds.
For intangible goods, you simply need to show proof that the item purchased is intangible.
Paypal isn't perfect, but if it really screwed over merchants the way you suggest they do, they would have gone out of business years ago.
> Paypal isn't perfect, but if it really screwed over merchants the way you suggest they do, they would have gone out of business years ago.
I don't think you can draw that inference unless there is a good non-Paypal option that doesn't screw over merchants. Getting a traditional merchant account and accepting credit cards online isn't such an alternative--that screws over merchants on charge backs and with the occasional massive and apparently arbitrary increase in reserve requirements.
As a merchant it feels like you're being screwed over, but the fact is you'll sell more and at higher values than if you don't accept paypal or credit cards.
There are plenty of studies showing that customers spend more if they pay by credit card. In fact just having a credit card logo visible will increase spending, even on cash puchases.
