Payment System Dilemma

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01-04-2008, 08:23 PM
Disasterman

Payment System Dilemma

I'm in a little of a dilemma with setting up a payment system.

Well, I am starting up a business were people can sell a certain physical item in a marketplace format (So buy/sell). The buyer will find item and send money, I will hold money until buyer receives item and it is confirmed by tracking # system or buyer. Once confirmed the money minus a small fee will be deposited into the sellers account/paypal/etc.

I was going to use the paypal website standard to accept and mass payment to send money to sellers.

However today I was told by a paypal rep. that they do not allow any a business to hold the money then transfer or escrow system. So now I don't know what I am going to do. Plus the fees would be about 4.9% + .30 per completed buyer/seller transaction.

Does anyone know of a good system I could use or someway to get around the paypal issue. I do not have a large budget to invest over $40 to $50 a month for a payment system really because it will be a start up business and not customers to cover the cost right away.

If there are any questions you can ask me to help you help me don't hesitate to ask.

Thanks in advance
01-08-2008, 05:06 AM
fionix

The problem is that what you are plan to do isn't allowed by the card association. You will need to be a registered Financial Company to do that.

Almost no MSP/ISO/BANK will be able to place your business with them.
01-08-2008, 03:34 PM
Disasterman

Wow, what something like that entail?

So is that how sites like campusbooks.com, textbookx.com, abebooks.com, and bookbyte.com does it?
01-13-2008, 05:55 PM
itHighway

Try 2Checkout.com.
01-15-2008, 04:54 AM
fionix

Quote:

Originally Posted by Disasterman

Wow, what something like that entail?

So is that how sites like campusbooks.com, textbookx.com, abebooks.com, and bookbyte.com does it?

As I say, there are a few processors that don't stick with the regulations and they might be able to help you, but often those solutions are very expansive and also there is no security on a long term.

You should reconsider your business model and if you decide to go further then make a good business plan and do alot of investigation. :)
01-15-2008, 04:55 AM
fionix

Quote:

Originally Posted by itHighway

Try 2Checkout.com.

I doubt they will take this tyepe of business, it would be a competitor to them, somehow....