Creating a payment processor
Discussion
Am I right in saying you'd like to start a paypal type service but using someone like worldpay to take the payment in the first place?
Most, if not all payment processors have T's & C's which exclude this. I'm afraid they won't touch you with a bargepole unless you have big backing. Either way you'd be better going direct to one of the big banks.
Most, if not all payment processors have T's & C's which exclude this. I'm afraid they won't touch you with a bargepole unless you have big backing. Either way you'd be better going direct to one of the big banks.
Very, very, very hard.
1) Market is dominated by the likes of PayPal, plus others like Natwest FastPay, NoChex and so on.
2) Major fraud issues... you can be liable for what your customers get up to, if they create a big debt with you (such as charge people for non-existent goods and do a runner), you’re stuffed when the end customer does a chargeback.
3) Getting a merchant account is hard enough anyway, if you so much as hint at taking payments for goods/services you don't stock/have/provide promptly, the banks will run a mile.
1) Market is dominated by the likes of PayPal, plus others like Natwest FastPay, NoChex and so on.
2) Major fraud issues... you can be liable for what your customers get up to, if they create a big debt with you (such as charge people for non-existent goods and do a runner), you’re stuffed when the end customer does a chargeback.
3) Getting a merchant account is hard enough anyway, if you so much as hint at taking payments for goods/services you don't stock/have/provide promptly, the banks will run a mile.
I think you'll need some deep, deep pockets - firstly to get your infrastructure up and running, to develop your systems and then get them compliant with the likes of Visa and MasterCard.
There are some big & established players in this market some of which are subsidiaries of large banks anyway. In the UK it is a fairly competitive market and the likes of https://www.pcisecuritystandards.org/tech/ mean it will be an even steeper mountain for small, startup operators to enter.
Do you have a unique selling point on this?
Phil
There are some big & established players in this market some of which are subsidiaries of large banks anyway. In the UK it is a fairly competitive market and the likes of https://www.pcisecuritystandards.org/tech/ mean it will be an even steeper mountain for small, startup operators to enter.
Do you have a unique selling point on this?
Phil
Edited by 944pi on Wednesday 28th February 23:21
What exactly are you looking to acheive? If it helps, we have all the relevant licenses (full banking license, PCI compliance, ALM and FSA compliance etc) and systems and work regularly with compnaies setting up bespoke payment soloutions.
Please feel free to IM me and if it help, happy to sign an NDA of course.
Please feel free to IM me and if it help, happy to sign an NDA of course.
more later in GG.Agree with what everyone else says - it's a VERY difficult thing to achieve. The technical build of such a system is fairly simple. The legal/financial hoops to jump through will be torturous at best if doing it from scratch. And this'll get even worse with all the 2-factor, 3D-secure, etc. stuff coming into play.
(For what it's worth, part of my "business life" is looking after Internet & Mobile Banking strategy for a rather large multinational bank, as well as having built, secured, and consulted on many custom e-commerce systems and platforms... I don't say what's written above lightly. But I'm more than willing to help in any way I can)
(For what it's worth, part of my "business life" is looking after Internet & Mobile Banking strategy for a rather large multinational bank, as well as having built, secured, and consulted on many custom e-commerce systems and platforms... I don't say what's written above lightly. But I'm more than willing to help in any way I can)
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