WebMoney

Posted on November 30th, 2007 by admin

WebMoney is an electronic money and online payment system (transactions are conducted through WebMoney Transfer). WM Transfer Ltd, the owner and administrator of WebMoney Transfer Online Payment System, was founded in 1998 and is a legal corporate entity of Belize, Central America. Originally targeted mainly at Russian clients, it is now used world-wide. The company claims to have more than 2 million users.

Clients can use the system through downloaded software called “WM Keeper” or through a limited web client called “WM Keeper light”. Signing up and receiving webmoney (known as “WM units”) from other users is free; sending WM units to other accounts incurs a fee of 0.8%. Funds can be deposited into or withdrawn from webmoney accounts by money order, wire transfer, by conversion from other electronic currencies, or by cash transactions at authorized exchange offices; all of these incur various fees. It is also possible to purchase WM cards for $10-$100 in order to fund an account.

WebMoney transactions are safe because they do not require a credit card or bank account and immune against certain scams because they are final and cannot be retracted; this is similar to e-gold and cash and unlike credit card transactions and PayPal. It is therefore not possible to buy WM units online with a mere credit card or a paypal account.

Every account, known as a “purse”, is run in US Dollar-equivalents (WMZ), ruble-equivalents (WMR), euro-equivalents (WME) or hryvnia-equivalents (WMU). Accounts are identified by strings called WM-IDs; account holders can remain completely anonymous towards each other.

WebMoney incorporates an instant messaging system as well as a way to send out bills and to extend credit. It is also possible to protect a payment with a password; the payment is withdrawn from the payer’s account and added to the payee’s account, but cannot be redeemed unless the password is known. The payer will typically provide the password once the promised goods have been delivered. Some operations require a higher level of user authentication known as a “WM passport” which a user can obtain from authorized parties.

The main address for technical support is given in Moscow; the main proprietor and administrator is located in Belize. Transactions in WMR are underwritten by WMR LLC in Moscow and transactions in WME and WMZ are underwritten by Amstar Holdings Limited in Panama.


Made for CIS

Besides CIS and Eastern European countries, WebMoney has offices in such countries as USA, Netherlands, Germany, Spain, Japan, Greece, Israel, France, UAE.


Security

WebMoney has had its share of security vulnerabilities. Fraudsters have targeted users of WebMoney with a host of Trojans and mal-wares.


See also

  • PayPal
  • E-Gold
  • Pecunix


References

  • Payment Providers on Net Articles on world payment providers.
  • Webmoney Keeper Classic in Firefox A set of plugins and scripts allowing authorization with Webmoney Keeper Classic in Firefox
  • Security Issues with WebMoney Fraudsters migrate from e-Gold to WebMoney - June 2007


External links

  • WebMoney official site

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