Banking suggestions

[Mightymarcoose]

I am starting an online marketplace where producers will be able to sell their products to the general public.. something along the lines of Amazon, but far more niche.

When a purchase is made, I will receive the full amount from the payment processor. Within 14 days of the sale, the vendor will be sent their payment minus my commission. If things go to plan then there will be a high number of incoming and outgoing payments and this is probably something worth considering when choosing which bank to go with.

My previous businesses have been far more straight forward and I'e therefore never needed to consider transaction fees. I am therefore looking for some advice on which banking solution to pursue.

Thanks!

 

[Mr D]

Always room for more online marketplaces. Despite two or three a month being planned there's a shortage of decent ones.

Any of the major banks can handle big transaction number commercial accounts. What you ideally want is low charges overall.

And considerable financial backing - you'll be spending a lot marketing to your two customer groups.

May want to revisit your idea of holding money 14 days. Its not as attractive as same day.

 

[Mightymarcoose]

Always room for more online marketplaces. Despite two or three a month being planned there's a shortage of decent ones.

Any of the major banks can handle big transaction number commercial accounts. What you ideally want is low charges overall.

And considerable financial backing - you'll be spending a lot marketing to your two customer groups.

May want to revisit your idea of holding money 14 days. Its not as attractive as same day.

Thanks for the reply, mate. It sounds like you have experience in the area. Let me put it this way: what bank account would you choose, if you were planning on building a thriving marketplace?

 

[Mr D]

Thanks for the reply, mate. It sounds like you have experience in the area. Let me put it this way: what bank account would you choose, if you were planning on building a thriving marketplace?

I'd choose a bank that has the facilities and the branch network I was after.
I know what I need for my business, I don't know all you need for yours.
For mine I am with Santander currently. If needs change then bank may change but they meet requirements I have.


You thinking of batch processing payments out once a day or having software make payments thousands of times a day?
Perhaps set out what you are after in services and facilities then quiz multiple banks regarding what they offer to provide that.
If they can't provide what you are requiring just knock them out of the running.

 

[Mightymarcoose]

I'd choose a bank that has the facilities and the branch network I was after.
I know what I need for my business, I don't know all you need for yours.
For mine I am with Santander currently. If needs change then bank may change but they meet requirements I have.


You thinking of batch processing payments out once a day or having software make payments thousands of times a day?
Perhaps set out what you are after in services and facilities then quiz multiple banks regarding what they offer to provide that.
If they can't provide what you are requiring just knock them out of the running.

Fair point. I will do just that - thanks!

 

[arnydnxluk]

Might want to consider using something like Stripe Connect instead. With this set up the merchant receives payouts directly and you get to retain your percentage cut. Just a thought.

 

[busowner987]

good luck! the marketing costs will kill you!