[sama]

If we have a lot of users sign up for deals that don't go through, that hurts us a lot. That's the reason we pre-set the discounts at levels that make sense for each category of business, and why we're reaching out to businesses early in the process.

We're taking credit card numbers in the same way Priceline does for name-your-own price deals and Groupon used to when deals might not tip. Please let me know what your friends say, though.

[rockya]

I'm well aware of the Priceline model. I've booked hundreds of room nights using Priceline -- in fact, I'm staying at a hotel I Pricelined right now.

The difference between Priceline and what you're doing is that Priceline has already established relationships with hotels. They have the ability to fill demand that meets certain criteria.

You don't have the ability to fill demand for the product you're advertising. Now, if Loopt were willing to pay the difference out of its own pockets (as some daily deal vendors do), that's another story.

Even then, you've got a trademark infringement issue.

[rockya]

From a payments expert: "I have never seen anything get so close to full on fraud in the open."