Online Payment Systems Directory

E-Gold is a very good and popular system.

E-gold is one of the well known and widespread mode of online transaction. Its reach is truly global, almost all over the world. It is especially very popular among small businessman, and investors, who prefer to do their own small currency exchange within their network. Its just like paypal but has a more global reach than Paypal.

Many online companies do accept it as a mode of payment, however, off late it had got issues with a lot of hacking, login problems, and other account irregularities, and a few big companies have decided to discontinue their service with E-gold. Still its presence is too big to be denied. If it can come out of these petty problem, that seems to be a part of it, this can really become BIG.

The transaction is easy to do, and once you get adjusted to its environment, one does not have much problem after that. E-gold currency is directly related to the global economy, and hence its figures keeps on changing. Rest is fine with it, as I said, if the can overcome some consistent problem like login trouble, and account hacking, make it a more safe, then they really can become number one.

A New Beginning

November 2008 will mark the 12th anniversary of e-gold's debut as an alternative global payment system enabling Users - individuals or businesses - to receive payment in gold at extremely low cost and without risk of the sort of payment reversals that characterize all credit based systems.

e-gold has been a pioneer in numerous areas and I am proud of its innovative accomplishments. Since 1996, the Internet has witnessed multiple online payment initiatives, several of them funded with $20-90 million of start-up capital, with distinguished founders and executive cadre, high profile brand name strategic allies, and favorable reception in the business press. But whereas Digicash, Cybercash, Beenz, Flooz, Peppercoin and a host of others each was promoted as the next big thing, all of them combined cumulatively [in their original incarnations - some have been restructured into other business models] executed less transaction volume than e-gold did in a typical single quarter.

But this note is not about success. It is about e-gold's failure to date to emerge, its failure to transition from a marginal player for early adopters to a respected institution integrated into the global financial mainstream. I am talking about a vision that has not yet been realized… and a determination to fix what needs to be improved.

e-gold's failure to emerge so far is a result of many factors but the root causes were design flaws in the account creation and provisioning logic that led to the unfortunate consequence of vulnerability to criminal abuse. Criminal abuse of the e-gold system, in turn, led to a self-reinforcing negative reputation.

Ultimately, criminal abuse of e-gold reached the point where the US Department of Justice intervened, bringing criminal charges against e-gold Ltd., Gold & Silver Reserve., Inc., (the Operator of e-gold and also of the online exchange service OmniPay), myself, and the other directors for violations of 18 USC 1960 [Operation of an unlicensed Money Transmitting Business] and 18 USC 1956 [Conspiracy to Commit Money Laundering]. The criminal case has been resolved. The resolution of the criminal case however provides for a second chance, an opportunity to address the flaws embedded in the e-gold system and to transform the "e-gold Operation" into the institutions I, the other directors, and our longsuffering employees and contractors have always envisioned, one that serves to advance the material welfare of mankind.

In harmony with this transformation, we acknowledge that e-gold is indeed a Financial Institution or Agency as defined in US law and should be regulated as a Financial Institution. E-gold Ltd. has submitted an application to FinCEN to be registered as a Money Services Business and will be seeking licensure in all states that require it. Most importantly, working in conjunction with US government agencies, we will be exerting every effort to bring e-gold into compliance with US law and regulation as quickly as possible.

I am going to briefly describe the systemic problems we are undertaking to rectify and a roadmap of where the system is heading. Going from where we are now to where we need to be is going to be a bumpy road, especially at first. Many legitimate e-gold Users have already suffered loss over the past year as the measures undertaken by the government to prevent dissipation of assets have severely impacted exchange markets with resulting illiquidity of a magnitude as to effectively make it impracticable to exchange e-gold for conventional money. There will be more disruption in the next few months but it will be temporary and will set the stage for powerful new features that enhance the usability and global reach of e-gold. If there is a silver lining, it is that the more illiquid e-gold has become, the more valuable it has become due to the (apparently ongoing) decline of the US dollar relative to gold and other non-financial assets.

e-gold User Agreement Changes

Before proceeding, however, let me make something clear that should have been made more emphatically clear long ago. Use of the e-gold system for criminal activity will not be tolerated. Memorializing this resolve, the following provisions are being added to the e-gold Account User Agreement:

2.3. User agrees to not use e-gold in any manner that violates the laws of whatever jurisdiction to which the User is subject.

4.6.1.1. If e-gold investigators reasonably suspect that the e-gold account of User is being used to launder the proceeds of crime or for any other criminal purpose, Issuer may freeze the e-gold account and any other e-gold accounts of User. Additionally, at the sole discretion of Issuer, User will be subject to damages and other penalties, including criminal prosecution where available and the notification of the general public of User’s actions, at the sole discretion of Issuer.

Design flaws in legacy e-gold system

A systemic flaw in the e-gold design, present from the very beginning, made it vexingly difficult for e-gold to expel a User, in a truly effective way, for criminal abuse of the system. e-gold investigative staff might detect suspicious activity, block or freeze the offending account, and later discover the same perpetrator had created additional accounts.

One element was logic that allowed an e-gold account full privileges from the moment of creation and only revoked those privileges in the event of suspicion that the account holder was seeking to mask their identity or actually engage in illicit activity.

Compounding this weakness was an unrestricted ability for Users to create multiple accounts without any obligatory indicator that they were all under the control of one person.

The next generation of the e-gold application will undertake to enforce a "one-human being/one e-gold User" rule. Instead of the existing logic where a User logs directly into an account, a User in the next generation system logs in as a User. Only validated Users are empowered with the ability to create multiple accounts.

The advantage from the cybercrime-thwarting standpoint will be an ever-stronger ability to blacklist a person who has abused the e-gold system.

e-gold is intensively working on this next generation User-based log-in system but it is likely to be another 6-9 months to deployment. Meanwhile, emergency surgery is required NOW.

Shock Therapy phase [may it be brief!]

1) Effective immediately, new e-gold account creation is suspended until a compliant interim solution for Customer Identification can be ensured.

2) We are requesting that autoexchangers - even though the technical beauty of the autoexchanger concept is sublime – cease supporting exchanges to or from e-gold for the time being. The problem with the autoexchanger concept is that although the autoexchangers themselves may be perfectly compliant with requirements [promulgated by Webmoney and e-gold] to automatically put tracking data in their memo fields, and despite the fact that Webmoney is also committed to aiding in the suppression of cybercrime, the fact is that a substantial proportion of the cybercriminals that abuse e-gold have evolved into a modus operandi that involves autoexchanging possible proceeds of crime into Webmoney, sometimes within minutes of receiving the value, thus making interdiction a matter of catch-up or closing the barn door after the horse is gone.

Looking Forward

We are confident that a regulated e-gold rebuilt to a more systematic specification will be less hospitable to criminals, and more attractive to mainstream business use without being less accessible to those disregarded by legacy payment systems.

Please accept our apologies for the occasional turbulence you may experience on this journey. And, as always...

Thank you for using e-gold.


http://blog.e-gold.com/2008/07/a-new-beginning.html

Internet Payments 100% backed by gold.

* Immediate payment no waiting for checks to clear or credits to be made.
* No chargebacks "Get paid, stay paid" unlike credit card payments.

Secure, user friendly access to your account.

* Easy shopping cart interface anyone can accept e-gold on their web site.
* Low fees lower than credit cards or competing payment services.
* Refer accounts, make money using the e-gold Incentive program.
* Buy or sell e-gold from/to the independent exchange service who best meets your needs.
* Available Worldwide the world's first truly global payment option.



e-gold Ltd. Is a Nevis, West Indies company created to serve as the General Contractor responsible for performance of the e-gold Account User Agreement. e-gold under its charter is completely dissociated from the business risks relating to exchange. This clarity of roles further assures e gold's freedom from default risk and finality of settlement.

e-gold was developed and deployed as an Internet payment system by Gold & Silver Reserve (G&SR), Inc., a Delaware Corporation in 1996. The e-gold roles of Issuance and Settlement were devolved to e-gold, Ltd. in January 2000.




Unlike other popular Internet payment systems, you can't buy e-gold from (or sell e-gold to) e-gold Ltd in exchange for any national currency (USD, EUR, GBP, etc).

The e-gold system is designed to be absolutely free of any financial risk. There can be no debt or contingent liabilities associated with e-gold. For this reason, e-gold Ltd. does not possess any national currency of any nation and has no bank accounts. Thus, e-gold Ltd. is not able to offer currency exchange services. Instead, a growing number of independent exchange services around the world support exchange between national currencies and e-gold, accepting various remittance methods, including credit cards, bank wires, checks, money orders, and other online payment systems.

Hi. I see you are all-to-know about this payment system!! Please, can you describe me the way of registration in the progect in detailes. I can`t understand what I am doing wrong and why I couldn`t register there. You have made very attractive and fully informative project! My respect!

Hello! Thank you for the activity on our forum!

Unfortunately at the current moment you are unable to create new E-Gold account. The system is under maintenance and process of improvement.

Before E-Gold registration process was pretty simple. On the index page you should just click on the "Create An Account" link. Then you should read and accept License agreement. Registration page is split on some parts. In the 1st part you should fill out Account Name and Description. Account name will be displayed in operations history.
Then you should enter contact information: your name, address, e-mail etc.
After that you should think the password - at least 6 symbols (it should contain letters and numbers). You should remember or writedown password somewhere.
Last field is the protection from auto-registrations, you should type there sequence of digits from the picture.

After correct form submitting you should receive confirmation e-mail to the address you have specified during registration. There you will find your account number.

e-gold Update: Owner CIP, CDD, and Agio Fee Schedule Changes

Effective immediately, e-gold requires additional information from all e-gold account Users in compliance with US legal requirements and e-gold’s “Customer Identification Program” (CIP).

Owner Information (Owner CIP)

e-gold requires all Users to provide information about the Owner of the e-gold accounts in User’s control. ALL USERS ARE REQUIRED TO TAKE ACTION AT THIS TIME.

Completion of User CIP is a prerequisite to completing Owner CIP. It is imperative for any User who has not yet completed User CIP to do so immediately.

Customer Due Diligence

Collection of information for identification and verification purposes is only one part of e-gold’s broader “Customer Due Diligence” (CDD) process. In compliance with US requirements, e-gold requires additional information about e-gold account Owners and the intended usage of their e-gold account(s) to prevent e-gold accounts from being used for money laundering, terrorist financing or other financial crimes. ALL USERS ARE REQUIRED TO TAKE ACTION AT THIS TIME TO PROVIDE REQUIRED INFORMATION.

Enhanced Due Diligence

As part of its “Enhanced Due Diligence” (EDD) efforts, e-gold may request other information for accounts with Owners or activity meeting certain criteria. For example, money transmitting businesses will be subject to EDD.

PLEASE NOTE THAT IF CIP, CDD OR EDD INFORMATION IS REQUESTED, IT MUST BE PROVIDED BEFORE ANY INITIAL OR FURTHER TRANSACTIONAL ACTIVITY MAY BE PERMITTED. FAILURE TO PROVIDE ANY OF THE CIP, CDD, OR EDD INFORMATION WHEN REQUESTED COULD RESULT IN YOUR ACCOUNT BEING TREATED AS ABANDONED PROPERTY AND ESCHEATED TO GOVERNMENTAL AUTHORITIES OR FORFEITED TO THE US GOVERNMENT.

Agio Fee Schedule Changes

Effective with the next Agio fee collection:

* The Agio fee rate for those e-gold accounts in compliance with all e-gold CIP, CDD and EDD data collection requirements in effect at the time of Agio fee collection will be reduced from 1% per annum to 0.5% per annum.

* The Agio fee rate for those e-gold accounts *NOT* in compliance with all e-gold CIP, CDD and EDD data collection requirements in effect at the time of Agio fee collection will be increased from 1% per annum to 10% per annum.

* e-gold accounts are deemed to be in compliance (for purposes of determining which Agio fee rate applies) if, as of the time Agio is collected, the User has provided *ALL* required information and documents, including any additional information or documents requested during the review process. For this reason, it is imperative that Users login regularly in the event additional information is required.


Further Agio Fee Schedule Changes

The Agio fee is the equivalent of an account maintenance fee. e-gold Ltd reserves the right to make further changes to the Agio fee schedule based on the costs of maintaining and enhancing the e-gold system. e-gold Ltd continues to review the Agio fee schedule in view of these costs and may announce further changes within the next 6 months.

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EVEN IF YOU BELIEVE THE ACCOUNTS YOU CONTROL TO BE FULLY COMPLIANT WITH ALL OF E-GOLD'S CIP, CDD AND EDD REQUIREMENTS, PLEASE MAKE A POINT TO LOGIN AT LEAST ONCE A WEEK TO SEE IF ANY ADDITIONAL INFORMATION HAS BEEN REQUESTED. FOR EXAMPLE, E-GOLD INTENDS TO REQUIRE ADDITIONAL OWNER CIP INFORMATION FOR ACCOUNTS WHERE THE USER IS NOT THE OWNER (SUCH AS ACCOUNTS OWNED BY COMPANIES) IN THE NEAR FUTURE.

FAILURE TO PROVIDE ANY OF THE CIP, CDD, OR EDD INFORMATION WHEN REQUESTED COULD RESULT IN YOUR ACCOUNT BEING TREATED AS ABANDONED PROPERTY AND ESCHEATED TO GOVERNMENTAL AUTHORITIES OR FORFEITED TO THE US GOVERNMENT.