Silk Road forums

Discussion => Newbie discussion => Topic started by: SRVet09 on September 23, 2013, 01:25 am

Title: Did you realize vendors had this ability?
Post by: SRVet09 on September 23, 2013, 01:25 am
As a vendor, you have the ability to receive a cash advance on the items you are selling while they are still in transit...and I quote from SR support...


"Cash advance

From your account page, you may accept advance payments on your orders that are currently in escrow. You'll see four numbers and a form field in a “cash advance” control panel. The first number is your limit. If your total outstanding advance payments meet or exceed this limit, you may not accept any more cash advances. The next number is the total of your advances currently outstanding. The third number is the difference between the first two, the total still available to you. The fourth number is the current fee for taking a cash advance. When you put the amount you want advanced to you in the input field and click go, that amount is immediately credited to your available account balance. This credit comes from the expected payments of your most recent transactions. When those transactions are eventually finalized, your account is not credited for them because you have already been paid. If a full or partial refund is issued for one of the transactions, your account is debited by the amount you were advanced plus the fee (or a prorated amount in the case of a partial refund).

For example, you sell a 20 btc item and then a 10 btc item. Your account page tells you that you have a 15 btc cash advance limit and the fee is currently 10%. You need all 15 btc, so you enter in 15 and click go. First, you are advanced 9 btc from the most recent 10 btc sale (10 btc minus the 10% fee). Then you are given a partial advance from the previous sale: 6 btc for a total of 15 btc. Let's say the 20 btc sale goes off without a hitch and the buyer finalizes the order. At that point, you would be paid 20 btc minus the 6 you were advanced, minus 10% of 6 (0.60 btc) for the fee, for a total of 13.4 btc. Next, let's say the 10 btc sale goes to resolution and you give your customer a 100% refund. In this case, you've already been advanced 9 btc and need to pay the 10% fee for a total of 10 btc, the original price. Therefore, 10 btc will be subtracted from your available account balance. If this causes your account to go negative, then any future deposits or payments will go toward reducing that negative balance.

The limit and fee are both self-adjusting according to a few simple parameters. The limit is governed by how much recent business you've done, and how much money you are expected to be paid from escrow. The fee is determined by the supply of and demand for the funds available for cash advances."







So this begs the question...what is to stop someone from opening a vendor account, listing expensive items (which he may or may not have on hand), requesting an advance on those items once purchased, and then abandoning the vendor account altogether?
Title: Re: Did you realize vendors had this ability?
Post by: isallmememe on September 23, 2013, 01:58 am
Quote from: SRVet09
So this begs the question...what is to stop someone from opening a vendor account, listing expensive items (which he may or may not have on hand), requesting an advance on those items once purchased, and then abandoning the vendor account altogether?

this\/\/\/ plus the $500 bond that a vendor has to put up to open a seller account in the first place.


The limit and fee are both self-adjusting according to a few simple parameters. The limit is governed by how much recent business you've done, and how much money you are expected to be paid from escrow. The fee is determined by the supply of and demand for the funds available for cash advances."

Title: Re: Did you realize vendors had this ability?
Post by: cryngie on September 23, 2013, 02:04 am
Sweet so there is no reason for vendors to ask for FE
Title: Re: Did you realize vendors had this ability?
Post by: plainsman1963 on September 23, 2013, 03:36 am
As well, for the last 9 months at least (as long as I've been around) this has been included with that option:
Quote
[Please note that the 'cash advance' feature is temporarily disabled
Title: Re: Did you realize vendors had this ability?
Post by: darkercore on September 23, 2013, 03:51 am
Informative thread. Love learning more about SR
Title: Re: Did you realize vendors had this ability?
Post by: Demacia on September 24, 2013, 03:13 am
Sweet so there is no reason for vendors to ask for FE

Of course there is. Asking for FE saves them 10% versus taking a cash advance.
Title: Re: Did you realize vendors had this ability?
Post by: bLACK-mEAT on September 24, 2013, 03:17 am
Wait 500$? I thought that bond was 40$?