"legal" Online Money Processor

[jdrescue]

I'm strongly considering launching my own online payment processor, which I'm needing to know what I would need to do to make it a 100% legal operation.

I'm not looking to screw people of out of money. I'm looking to charge a flat race $ or % rate on transfers. I'm wanting to operate a safe, secure, scam free operation.

Will I need to register securities, or register with anything esle? I look forward to your response.

[Ferret]

Why would anyone use your service over PayPal who is the leader in the field?
How could you compete with them?
Who would trust you and why?

The fact that you don't state what country you are in
Your experience in any related or needed fields
How much capital you have to set this up
etc, etc leads me to believe yours is just a flippant post with no thought behind it

Have you tried googling the info?
You want someone else to do all the work for you?
Sounds like the formula for success....

[jdrescue]

Why would anyone use your service over PayPal who is the leader in the field?
How could you compete with them?
Who would trust you and why?

The fact that you don't state what country you are in
Your experience in any related or needed fields
How much capital you have to set this up
etc, etc leads me to believe yours is just a flippant post with no thought behind it

Have you tried googling the info?
You want someone else to do all the work for you?
Sounds like the formula for success....

sorry i asked....

[Ferret]

Just like i thought, you have got nothing but a "brilliant" idea.....

I'm strongly considering launching the next eBay........anyone got any ideas?

[mercinary]

Ferret:

Your comments, while warranted, are a bit harshly spoken. Please keep in mind that everyone is allowed their voice here.


JDrescue:

Please consider sharing your replies to these questions with us.

-Merc

[jdrescue]

Ferret:

Your comments, while warranted, are a bit harshly spoken. Please keep in mind that everyone is allowed their voice here.


JDrescue:

Please consider sharing your replies to these questions with us.

-Merc

Mercinary,

Thank you for your response (unlike the guy who replied before you...). I'm in the process of launching my own online payment processor.

I'm purchasing the software and hosting as week speak. My worries at this point, is am I required to have a special license/certification to be able to operate a online money processor?

I'd also like to know what the users would like to see from such a service (fee structures, etc.). I look forward to your response.

Thanks,
jdRescue

[Ferret]

Reality is harsh.........
How am I stopping JDrescue from answering?

Setting up an online payment processor is a very big undertaking especially now that
the field is well served by PayPal and many others
If he can't answer a few simple questions I don't think he is up to the job
PayPal is owned by eBay and is a very sucessfull business
How does he propose to get me to use "his" service over theirs?

[Ferret]

I'm purchasing the software and hosting as week speak. My worries at this point, is am I required to have a special license/certification to be able to operate a online money processor?

I'd also like to know what the users would like to see from such a service (fee structures, etc.).
How can anyone answer your question about special license/certification if
you don't state what country you are based in?
Where did you purchase the software from?
How much did you pay?
Who is hosting this?
Who is looking after the money?
Etc

Why don't you ask the questions about licence, etc to the Company that is selling you the software and the hosting?
Or have you already?

What do you mean by "I'm purchasing the software and hosting as week speak"
This makes no sense in english

Obviously the fees would have to be less than the competition or why would anyone use you
Why would I trust a new payment processor with my money over PayPal?

[weirdid]

jdrescue,
i would suggest that you do a lot more research before you start to spend money on this project.

Talk to a hardware engineer about the cost of a bank of secure servers.

Talk to a software expert.

Talk to a lawyer.

I hope you have at least a half million bucks spare to get you started.



-weird

[Ferret]

@weird You are missing the point here.....
He isn't proposing setting up a company like that

jdrescue has found some company?/website? that is selling him a package to be an online processor
Until he gives ALL the details it is hard to comment conclusively

I am smelling a bad deal though and probably a scam in which he will lose whatever money he pays and not make anything

Hopefully he is still in the "thinking" stage and hasn't coughed up any dough yet......
I'm purchasing the software and hosting as we{ek} speak
Does this mean you bought it already?

[jokach]

I have to agree with what Ferret is saying about the fact that jdrescue is looking to buy only software and hosting in order to become a "payment processor". In comparison, its almost like me going out and buying a building with a small safe in it and then opening up a bank ... its not that easy.

Theres lots of things that need to be considered, most importantly from a legal point of view. Its easy to say that you don't want your business to be labeled a fraud, but if you don't provide an adequate sense of security for your customers, you will be labeled a fraud, because every scam on the planet will come and request your services (they prey on those types of deficiencies). It all starts with building a good name for your business (like it is in any business), and having strong, fair and enforcable rules and regulations is the way to start ...

My recommendation is to plan this like you would plan any other business, first by putting together a stable business plan and considering all the potential issues that are out there in an international ecommerce world. You need to work out these issues before you get your first customer, because once you take money from one person, its impossible to turn back. YOu may end up biting off more than you can chew.

Hope this helps ...

jokach

[mercinary]

I agree with what all have said. Playing devil's advocate for a moment....

maybe JD has some answers to all the questions posed in this thread? Maybe he/she has a legitimate business plan he/she is willing to share with us (or at least give us an overview)? Please post if so.

-Merc

[jdrescue]

I agree with what all have said. Playing devil's advocate for a moment....

maybe JD has some answers to all the questions posed in this thread? Maybe he/she has a legitimate business plan he/she is willing to share with us (or at least give us an overview)? Please post if so.

-Merc

Yes, I am purchasing software which will enable me to successfully launch a near turn-key program. I'm registering hosting services, which will be able to handle the traffic, etc.

I'm in the process of getting discussions with legal personel, who're involved with this style of industry. Hopefully they'll be able to let me know if they're are any legal forms, licenses, etc that I will need to have to just simply operate this style of service. Anyone on this forum with prior experience/knowlege would be great.

I know that I will need to incorporate a business, which isn't a real big hassle.

I'm definetly going to have a audit team.

I live in Texas, which is in the USA.

[ycchen]

My curiousity is: Will you accept ponzi/pyramid/matrix-based "business"?

[Ferret]

Yes, I am purchasing software which will enable me to successfully launch a near turn-key program. I'm registering hosting services, which will be able to handle the traffic, etc.

I'm in the process of getting discussions with legal personel, who're involved with this style of industry. Hopefully they'll be able to let me know if they're are any legal forms, licenses, etc that I will need to have to just simply operate this style of service. Anyone on this forum with prior experience/knowlege would be great.
You say you are purchasing software.....
Does this mean you have already bought the software?
It seems that the legal aspects need to be taken care of first

What is the software?

How much was the software?

Who did you buy it from? Website? or?

Is there anyone else using this turn-key package?

Software can't run a business......PayPal has lots of employees at a physical address
They have a 800 # and answer it

Hosting services for an Online Payment Business have to be very secure not
only on the software side but also physically as they are storing very sensitive info of your customers

I am curious where the money you collect from your customers actually is kept and by who?

[jdrescue]

My curiousity is: Will you accept ponzi/pyramid/matrix-based "business"?

Nope. Any company I would deal with must submit actual proof that they're lagit.........then prove they're lagit

[ycchen]

Then, you might need a team of people just to verify the legitimacy of those companies.

You might want to think carefully about Ferret's questions before you start your one-person virtual CC processor.

Otherwise, you will be just wasting your money buying the software. I assume the turnkey software should be expensive, at least few thousand dollars, right?

[sisco50]

So much for the bright side of things. I have a scenario in mind that I consider the dark side. If you are purchasing software to run a turnkey business and 30,000 others buy the same software for the same reason, you will have some kind of competition right off the bat. Chance of success is minimal when you throw in the established big boys of the industry on top of it. :(

I am from Texas and own a business as well and I might add that one must be careful about legal aspects when doing a startup of a business. :)

[mercinary]

I know that I will need to incorporate a business, which isn't a real big hassle.


I don't own my own business, but doesn't it make sense to have a business plan before you have the business? For example, what market(s) are you targeting, what demographics, what will be your marketing strategy, how/why will you be better than other payment processors?

-Merc

[Ferret]

My curiousity is: Will you accept ponzi/pyramid/matrix-based "business"?

Nope. Any company I would deal with must submit actual proof that they're lagit.........then prove they're lagit
I thought you said you would NOT accept ponzi/pyramid/matrix-based "business"
When and why did you change your mind?

PS: lagit = legit = legitimate

See; New Payment Processor
http://www.matrixwatch.org/forums/showthread.php?p=35294#post35294

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