In "Twain" and other Internet business concepts there is a big problem with establishing methods of payments and refunds that is convenient for both the customer and the business, while insuring the privacy of the customer. AMIX, netcom, et. al. ask for credit card number, keep names and addresses of customers online, probably keep dossiers of services customers have bought, etc. (Even if not purposefully, they frequently do system backups). Just about every business has to have a way of recieving payment and distributing refunds to customers, in legal tender. I'm interested in how to set up a physical mail drop/ATM protocol to allow customers to exchange legal tender for digital postage (or coupons, or greenstamps, or cash, or whatever we want to call it. Digicash is ideal, but the nomenclature might have to depend on what is legal in various jurisdictions). Here's my first cut: Customer signs up by sending legal tender (physical cash or money order) in mail, with anon physical mail drop to which the stamp vendor replies with a floppy containing: * N digital stamps * other tools to connect to vendor (eg software to handle digital stamps, e-mail utilities, client software, etc.) Vendor also sets up a "bearer" offshore bank account or credit union account with ATM card. A PIN and password are sent to customer, needed to activate the card and digital stamps respectively. Customer pays up front for N digital stamps and the sign-up fee. Digistamps obtained from various vendors (in the S&H greenstamp scenario) can be deposited at will. For refunds, these stamps can be removed from the account, digitally converting to legal tender in the bearer bank account, where customer can remove at a max rate of (typically) $300/day via ATM. Some problems: mail drops and bearer bank accounts may be a major hassle for customers of most service businesses. Also for "normal" businesses many customers will be turned off by the "shady" nature of the billing scheme. (Cf. Cindy's recent response to Tim May's post on her bartering scheme). There are major legal issues here: is a formal "bearer bank account" legal? Are digital S&H greenstamps legal? In what jurisdictions?