Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > Generating Revenue, Insurance, Taxes, Etc. > Ecommerce
Register Search Today's Posts Mark Forums Read

Reply
 
Thread Tools
Old 25th October 2011, 01:34 PM   #1
rajsid
Member
 

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

rajsid is offline   Reply With Quote
Register or log in to remove this ad.
Old 31st October 2011, 05:18 PM   #2
MattHelps
Member
 

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

Matt

MattHelps is offline   Reply With Quote
Old 11th January 2012, 11:49 AM   #3
SaraMartin01
Member
 

Join Date: Jan 2012
Posts: 3
Default

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
merchant_guru
Member
 

Join Date: Jan 2012
Posts: 6
Default

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.

Russ

merchant_guru is offline   Reply With Quote
Old 17th February 2012, 03:19 PM   #5
Subuno
Member
 
Subuno's Avatar
 

Join Date: Feb 2012
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.

Subuno is offline   Reply With Quote
Old 30th April 2012, 07:28 PM   #6
tobuso
Member
 

Join Date: Aug 2010
Posts: 62
Default

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
jazzalbart
Member
 

Join Date: Jun 2012
Posts: 8
Default

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
CUMBA
Member
 

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
Reply   

Bookmarks


Similar Threads
Thread Thread Starter Forum Replies Last Post
Merchant Accounts R_L Ecommerce 40 7th April 2014 03:36 PM
Mobile Or Wireless Credit Card Machine Question miyukid03 General Small Business Issues 7 28th August 2010 05:16 PM
Credit Card Terminal kslush14 Computer Hardware 0 13th October 2009 03:51 PM
Credit Card Storage for your online store esearing Ecommerce 0 13th April 2006 09:03 AM



Thread Tools

Get Updates
RSS Feeds:
RSS Feed for Ecommerce RSS for this Category Only: Ecommerce

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


Small Business Ideas Forum


 
At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
 
Search Engine Guide
Small business guide to search marketing

 
Small Business Brief
Fetching the Best Small Business Info


Free Links - Free Advertising
Free Guide - Online Directory



Advertise your business here
Contact us for more details!


Semantic Juice
Register now to access free Quick SEO service!


Rocket Lawyer
Sign up for free 7 day trial. Boost your biz!


Buy UPC Codes
Get your products listed online!




All times are GMT -5. The time now is 05:10 AM.


Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy