According to a press release this morning, BarterQuest, online barter company and classified system, introduced a points system to augment and assist buyers and sellers in exchanging items and services.
Points are intended to provide users with greater flexibility in finding and completing fair trades in those cases in which both parties want what the other has, but there is a significant difference in the value of the items. Points become the equalizer.
Users will be able to purchase points at any time (one point equals one dollar) and redeem them for cash. Users will also be able to accumulate points through their trading activity when and as they receive points for their items. There will be no charge for the purchase of points. There will be, however, a small service charge for the transfer or redemption of points. BarterQuest has partnered with PayPal to develop tailored applications of its newest Adaptive Payments APIs to provide users with easy and safe payment options.
A secure payment feature will escrow points for a period of time after their transfer. During this period they will be unavailable for use in another trade and cannot be redeemed. If the sender of the points disputes the trade within this period, the points will be held pending a resolution of the dispute.
“Our site is committed to facilitate trading by our users,” stated Michael Satz, CEO of BarterQuest. “To do this, we want to develop features that reflect not only what they may want, but what they may need to complete a trade. While barter inherently involves the exchange of one item for another, there are cases in which potential trading partners may each want what the other has, but the value of the items is unequal. When the difference cannot be bridged with additional items, points can solve the problem. The introduction of points opens up the trading possibilities for our users.”
We at BNW see this as a compromise of epic proportions. To have an internet direct-barter company change course midstream and introduce an alternative currency to their business model says volumes about how direct trades really work (or don’t).
