Exchange rates:
5 seconds ago

Things we all want to know about Liberty Reserve

Liberty Reserve - description of payment system, how to exchange LibertyReserve and LR exchangers. All about Liberty Reserv currency Liberty Reserve is a payment system that uses digital gold currency. Classed alongside other payment systems such as PayPal and MoneyBookers, Liberty Reserve is increasingly becoming popular especially in developing countries. Opening and running a liberty reserve account is quick and easy. A user may open as many accounts as they found necessary. Example of other digital gold currency operators include e-gold, gbullion, liberty reserve, igolder, pecunix, e-dinar, and goldmoney.

Is Liberty Reserve a reliable payment system?

Yes, LR is a reliable payment system. As a corporate body, Liberty Reserve is a digital gold currency (DGC) issuer that came to the fore in 2004. But it was not the only payment system operator during that period. Many other digital gold currency issuers were also in operation but the business of representative money for many issuers was short-lived as regulatory bodies shut down a good number of issuers and others went under. Liberty Reserve has so far outlived many of its rivals.

How does LR Work?

Liberty Reserve works on a principle that allows people pay each other in LR units over the Internet. Each LR unit represents a certain value in gold grams or troy ounce. Liberty Reserve charges a transaction-processing fee of 1 percent for every transaction. The idea is simply to trade LR units, which are value in gold, platinum, or Silver.

How digital gold currency issuers, like Liberty Reserve, do things differently from say PayPal is that they offer borderless world currency system that is completely independent of any one countryís economic and political events. Digital gold currency is a wise way to shield money against economic downturns due to recession, devaluation of currency and other fiscal policies. Sounds like a safe haven but there are some drawbacks.

Many online stores and dot-com firms do not accept Liberty Reserve. Also, a great number of people consider depositing money in Liberty Reserve as a high-risk thing to do because individual accounts are prone to cyber attacks. When you look at the overall Liberty Reserve transactions in terms of size, Liberty Reserve is often used to make transactions involving smaller sums of money.

Where is LR corporate headquarters located?

Until recently, the exact location of the Corporate Headquarters of Liberty Reserve was not very clear. At one time, it was a registered company in Panama. It has since moved to Costa Rica and became a registered company there. Liberty Reserve did not just move its headquarters to enjoy that countries favourable tax and other attractive investment incentives design to lure investors, but also to shield its operations from the preying eyes of regulators. Remaining undisclosed is the number of bullion stored in reserve, the number of users and LR annual storage fees.

Are my deposits safe?

Although Liberty Reserve has deployed the most sophisticated security barriers or technologies to fight against all forms of cyber attacks, however, cyber attacks on customersí accounts continue to happen unabated. Many customers have complained of unauthorized transactions and whatnot. Internet rogues target all types of payment systems but, for some reasons, it seems Liberty Reserve attracts the most attacks.

To combat such attacks, the company advises against suspicious links in emails purportedly coming from Liberty Reserve. Also, users are advised to use unique and hard to guessed passwords and to avoid giving out their passwords. In addition, it is not a good idea to access your Liberty Reserve account from public computers or machines with outdated security tools.

How to transfer to and from a Liberty account

Third party companies also known as exchange providers help Liberty Reserve customers fund and transfer money. They also come in handy in helping LR customers convert their national currencies to Liberty Reserve units. Exchange providers accept money from Western Union, local cash deposits, local mailed postal money orders, Money Gram, and bank wires and change them to transferable LR units. But because Liberty Reserve does not deal directly with funding of accounts and redraws, many people prefer to be on the safe side of having very small amount of deposits at a time.

Moreso, to transfer money from one payment system to liberty reserve, a customer needs an exchange provider. Customers have complained about the cost of using such services. It is advisable to choose from LB recommended exchange providers.

What is LB Wallet?

Wallet is a great Liberty research feature that helps users easily process payment. Enabling this feature is optional and thus not very necessary. Although it is not a must-have tool but there is no harm in trying. To use this feature, you must enable the tool through the ''My Wallet'' link on your account. Note: the account must have some fund on it.

What is Unique Transfer Batch Number?

In order to help users fight fraud, there is a unique transaction batch number for every transaction: Something akin to a security certificate when one customer pays money into a second customerís account. The unique transaction batch number is visible on the account history section of a userís account. With the batch number, someone expecting payment could simply ask for the unique transfer batch number for confirmation. This number helps prevent situations where people claim to make payments.

There are some risks involve in using Liberty Reserve. First, there is no way to terminate such a transaction. Payment to an account is instantaneous; thus the minute someone pays money into an account, the money becomes available for the next transaction. This is completely different from PayPal. With PayPal, the sender can always cancel a transaction.

How popular is Liberty Reserve?

A good number of people use Liberty Reserve to pay for items or services online. But that number is quite small when you compare Liberty Reserve to other Payment systems such as MasterCard, Visa, PayPal and even Google Checkout.

To some countries where the traditional means of making online payment is not available, Liberty Reserve continues to be the number one way of receiving and making payments online.

© – 01/29/2012
Reprints are allowed only by permission from

Other articles