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Old 25th October 2011, 01:34 PM   #1

Join Date: Oct 2011
Posts: 0
Default Credit Card Integration Question

Hello all,
New guy here with a question

I am starting a website where sellers can sign up and sell stuff. When buyers purchase items using their credit cards, we will take a % out of every sale that happens on the site.

1) I want to allow sellers to enter their 'merchant account number' so that proceedings from each sale will go to them.
2) A % out of every sale should go to me.

Are there any third party services I can use for this sort of functionality?
Is it better not to take my cut right away and wait till the end of the month and send an invoice to the sellers like eBay does?
lastly... what are things I can do to minimize the amount spent on credit card transactions?

Thank you so much in advance.

rajsid is offline   Reply With Quote
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Old 31st October 2011, 05:18 PM   #2

Join Date: Oct 2011
Posts: 5
Default Third-party processing

Hi Rajsid,

You have an interesting question.

But let me get some terminology correct first to make sure i understand what you asking for.

Any of the following incorrect? (I am assuming this is what you want):

1. You want to have a portal site where merchants (sellers) sell their stuff on your website.
2. You want to process the payment for goods sold on your website.
3. You want to take a % out and then send the remaining amount to the merchant.

If (2) above is what you want to do, then you have to have a merchant account of your own that allows third party processing. Very few companies allow this because you are really wanting to be a PayPal (small sector of merchants of course) but essentially that is what you want.

When you process credit cards on behalf of a merchant or seller then you own the property (the customer information and customer risk associated to the merchant processing by the risk department or underwriting department of the acquiring bank facilitating the merchant account on your behalf). This is the main issue that PayPal had when they started. But they had a lot money to back them so they overcame this problem. Many others who tried, did not.

You can get a third-party processing account that allows you to do just that. But you still have issues such as risk factors vs risk mitigation and they may want to own the customer database or in some case relinquish the ownership over to yourself depending on what they think your account is worth and what the risk may be.

2checkout.com , ibill , ccnow , regsoft (for software) , kagi , paymentonline.com and digitalcandle are all ones you can research and speak with to see if you find the best ones for you.

Good luck


MattHelps is offline   Reply With Quote
Old 11th January 2012, 11:49 AM   #3

Join Date: Jan 2012
Posts: 3

Hey Matt,

Thanks for your detailed reply. How much do 2checkout reserves for a business account? In case of Moneybookers they keep a certain amount reserved in a merchant account and that could be troublesome for those who can't afford it.

Looking forward to your answer.

SaraMartin01 is offline   Reply With Quote
Old 13th January 2012, 03:11 PM   #4

Join Date: Jan 2012
Posts: 6

Hi rajsid,

As Matt mentioned, you cannot collect credit card sales on behalf of someone else. This is called factoring and violates visa, master card, discover and american express rules. In order to avoid this each seller will need their own merchant account and the credit card proceeds will need to go directly to them. You will need to clearly state that the transaction is between the buyer and seller and that you are merely facilitating the sale. That way any problems with the sale do not affect you and you are not responsible for any chargebacks.


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Old 17th February 2012, 03:19 PM   #5
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Posts: 6
Default credit card processing

Above answers are excellent, I would just add that if you want to be the middle connecting layer between buyer and seller, you also need to think about how you plan to deal with chargeback issues. I've talked to many merchants who are very unhappy with the way paypal and others handle customer complaints and end up siding with customers more often than not.

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Old 30th April 2012, 07:28 PM   #6

Join Date: Aug 2010
Posts: 62

This is certainly a high risk situation for the processor. It can be done but you will most likely have a reserve put on you as well as some fairly high rates.

We can take a look at this but no guarantees that it will get done.

tobuso is offline   Reply With Quote
Old 28th November 2012, 02:32 AM   #7

Join Date: Jun 2012
Posts: 8

I'm agree with Matt. This is the only solution that you can apply to have 3rd part services. And I've done the same to allow my customer.

jazzalbart is offline   Reply With Quote
Old 3rd December 2012, 12:09 PM   #8

Join Date: Nov 2012
Posts: 1
Default Network Merchants

You could sign up as a reseller with a gateway provider. I've used NMI, Network Merchants Inc, before and they are easy to work with. I think authorize.net offers similar services.

You can link merchant and ach accounts to the gateway and markup the spread.

I dont think this would violate V/MC policy but I could be wrong.

CUMBA is offline   Reply With Quote


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