How to buy diamonds online with the help of diamond retailers
Cash-strapped Australians are finding it easier to buy gold online.
Cash-strapping Australians are buying diamonds online, despite the government banning online sales from February 1.
The ABC’s Moneybox investigation into online diamond buying reveals some big names are taking advantage of the loophole.
Cash-only diamond shoppers can buy gold from a variety of websites.
They can buy it through a cash machine, with the proceeds sent back to the customer.
But when it comes to buying diamonds, Australians must first get their hands on a diamond ring.ABC Marketplace is looking at the process and finding out how you can buy a diamond online with a cash register.
“It’s not that difficult,” said John Smith, a diamond buyer who lives in the Gold Coast.
“You go to a jeweler’s and they take a diamond and cut it out.
You just need to ring up the jeweler and ring the credit card up.”
John Smith, who is buying diamonds from a diamond seller online, said the process is easy.
“They just have a ring of a particular colour, so they cut it up and put it in the register,” he said.
“If you want to pay them a little more, you can pay them with a debit card.”
John said he used a credit card and a PayPal account to pay for the diamonds.
“I was just a little bit of a fool and didn’t realise that there was a whole lot of fraud,” he laughed.
Mr Smith said there were a lot of people selling diamonds online without knowing what the requirements are.
“There’s a whole bunch of websites, and a lot more than you’d expect,” he explained.
“The only requirement for that transaction is that you have a credit or debit card and you need to have a valid Australian bank account.”
Mr Smith used PayPal and a credit and debit card to pay the money for the diamond ring he wanted.
He said there was “a lot of confusion” on the diamond websites.
“Somebody said they’d send it to my bank account but that’s not true,” he joked.
“That’s just a joke.
John, who has a wife and three children, said he had bought two rings with the ring he bought.””
Somebody’s going to send it.”
John, who has a wife and three children, said he had bought two rings with the ring he bought.
“This is a very special ring that has a very high grade diamond,” he told Moneybox.
“I didn’t know what to expect.”
Mr McKeague bought two diamonds from the same diamond seller.
“He was very nice,” he recalled.
“In fact, he was a bit of an asshole.”
John and John bought two different diamonds with the same seller.
He found out later the seller had used a different credit card.
John said the seller never mentioned the credit and he wasn’t told the money would be returned to his bank account.
“When they asked me what I wanted, I said, ‘Well, what would you like?'”
“And he said, I think it’s $1,500,” he added.
“And I said to him, ‘Okay, well I’ll go ahead and pay that.'”
He said, you’re paying $1.5 million and that’s fine, I’ll send it.’
“And then I saw it, and I thought, well, you know what, I’m not really buying any more.”
So I didn’t do it.
And the next day, I found out it was a $2 million ring.””
I thought I’d be very surprised and I’d just gone and bought a bigger one, but that didn’t happen.
“John is happy he found a different diamond seller and said he was not a fan of the diamond sellers.”
Every one of the sellers are cheats,” he lamented.”
Even the ones that were legit and honest.
“John’s wife, Kate, also has a gold ring.
She found out she’d been cheated when her bank account was used to pay a third party.”
My bank account got hacked,” she said.
Kate said she was “very disappointed” and “disappointed” she hadn’t been notified of the problem earlier.”
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