Need Help with Payment Processing

[Vegvisir]

I am working on a business model currently and one of the core tenants of the business is setting up an easier way for people to deal with payments. The business is a specialized auction site. Right now the competition is still doing things through snail mail (money orders, USPS money orders, personal checks) and limited credit card processing.

I need pointers and advice on how to go about setting up an account/accounts that are attached to the site that people can transfer money into directly from there back accounts and pay each other with. Something similar to how you can transfer money into and out an PayPal account from your bank, but the “PayPal” account needs to be something hosted by my site.

The closest I can come to right now is open a single back account people can transfer money into/out of and each person only has access to the money they have put in.

If someone knows of a payment processing expert I could be referred to also that would be helpful.

If this doesn’t make sense please let me know and I will expand.

Thank you for your time, it is greatly appreciated.

 

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[Kid]

Not sure if they are still around but Efficient & Secure ACH Payments | Dwolla was doing payments with your bank account (as opposed to cc)

 

[Vegvisir]

Not sure if they are still around but Efficient & Secure ACH Payments | Dwolla was doing payments with your bank account (as opposed to cc)

Thank you! I will look into them.

 

[Jon L]

why does it need to go into a central bank account?

And, what transaction fee do you need for your business model to work? What is the speed of transaction you need?

 

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[Vegvisir]

why does it need to go into a central bank account?

I guess there is no requirement for it to necessarily, but with digital payments I don’t really see a way around it. For example in order to get money into a paypal account your transfer it in from your regular bank account. How would people get digital money conveniently in there account without using a bank? Sending a physical check somewhere would not be quick enough in this case.

What did you have in mind to bypasses banks and that allows easy, quick, transactions on an auction platform?

I am currently looking to zelle, bitcoin, etc as alternatives but it needs to be something easy the average non tech person can do.

And, what transaction fee do you need for your business model to work? What is the speed of transaction you need?

The current competition is charging auction 3.5% fee on the first $250, then 6% on the amount above 250 dollars.

They in no way directly process the money(Money orders, checks, CC is third party) so they don't incur any processing fees at the moment.

 

[Jon L]

I guess there is no requirement for it to necessarily, but with digital payments I don’t really see a way around it. For example in order to get money into a paypal account your transfer it in from your regular bank account. How would people get digital money conveniently in there account without using a bank? Sending a physical check somewhere would not be quick enough in this case.

What did you have in mind to bypasses banks and that allows easy, quick, transactions on an auction platform?

I am currently looking to zelle, bitcoin, etc as alternatives but it needs to be something easy the average non tech person can do.



The current competition is charging auction 3.5% fee on the first $250, then 6% on the amount above 250 dollars.

They in no way directly process the money(Money orders, checks, CC is third party) so they don't incur any processing fees at the moment.

If you store money for your customers, I don't know this, but I think that you will run into problems with regulations. I'm sure they're not insurmountable, but you need to be very careful. Look into third party escrow services you could partner with as you start out.

Beyond that, all the other payment options are available. ACH is low fee, but has its issues setup wise. Credit card is easy to process, but comes with around a 3% fee.

If you have more specific questions, let us know.

 

[broswoodwork]

I am working on a business model currently and one of the core tenants of the business is setting up an easier way for people to deal with payments. The business is a specialized auction site. Right now the competition is still doing things through snail mail (money orders, USPS money orders, personal checks) and limited credit card processing.

I need pointers and advice on how to go about setting up an account/accounts that are attached to the site that people can transfer money into directly from there back accounts and pay each other with. Something similar to how you can transfer money into and out an PayPal account from your bank, but the “PayPal” account needs to be something hosted by my site.

The closest I can come to right now is open a single back account people can transfer money into/out of and each person only has access to the money they have put in.

If someone knows of a payment processing expert I could be referred to also that would be helpful.

If this doesn’t make sense please let me know and I will expand.

Thank you for your time, it is greatly appreciated.

I can't believe the cryptocurrency enthusiasts haven't descended upon this question with the force of 10,000 suns...

Will crypto work?

 

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[Vegvisir]

I can't believe the cryptocurrency enthusiasts haven't descended upon this question with the force of 10,000 suns...

Will crypto work?

Yes, cypto seems like an obvious answer here, however I have to keep things simple to the average user (most people above 35+ don't really grasp cyrpto in my opinion). Also in my experience using coinbase it can take days to weeks to actually purchase the crypto and blockchain verification also is lengthy.

Thanks for the idea i am still looking into this as a possible venue.

 

[Entre Eyes]

As long as you include some type of escrow protections or you will be opening a big box of Frama. I invented that. Financial Drama.