'Third Party' Payments

[YourParkingSpace]

Hi,

I've looked into whether it's possible to accept 'third party' payments on websites - i.e. accept money from customers who are buying the good/service provided by a member of the site - it would work in a similar way to ebay, very much based on trust and feedback. However, problems have arisen when attempting to obtain an internet merchant account from a bank. WorldPay would be too expensive, and the credibility and low fees (high turnover expected) means that banks combined with an internet service provider (e.g. protx) are the only viable option.

One possible way around this would be to have the good/service providers sign a contract beforehand to state that they do own the rights for what they are offering. The exact details would then be validated by us.

It probably all sounds a little vague at the moment, may be best to discuss the options over the phone with any legal e-commerce experts out there, but would the signing of contracts make the application more likely to be accepted by the banks?

Charles

 

[Kaltons Solicitors]

Dear Charles

This sounds unduly complicated yet I get that you find WorldPay etc expensive. I recommend you try Google's new payment system that I heard about today - apparently it's cheaper & very good though I have no experience with it. Most of our clients (we are internet lawyers) use WorldPay or PayPal though I don't like the highhandedness of PayPal at times - they suspended a client's account at Christmas blocking her sole source of income and said they were freezing it for 6 months and while I can see she attracted attention for a reason, she was legitimate and yet it took weeks to resolve and about £1,500 + VAT in legal costs which are irrecoverable.

If you can't sort it, do call my colleague, Maitland Kalton, to discuss the matter: 020 7278 1817.

Regards

Arif


KALTONS SOLICITORS LLP
020 7278 1817

 

[YourParkingSpace]

Hi Arif,

Thanks for the quick reply. I would use WorldPay but we have very low margins meaning that WorldPay would pretty much receive all our profit. I agree with you about PayPal - concerned that my account could be suspended at any point, particularly as in the early stages a slightly high level of chargebacks are possible.

Definitely keeping a close eye on Google's new payment system, although I understand that at the moment it is only available in the US. Correct me if I'm wrong though.

I'll give your colleague a call very shortly about it.

Thanks,

Charles

 

[Kaltons Solicitors]

Hi Charles

I hope the information that Maitland provided you was useful.

If you want anymore help, feel free to call us or alternatively we could meet for coffee.

Regards


Arif

KALTONS SOLICITORS LLP
020 7278 1817

 

[Bouldr]

Yep - it would seem that Google checkout is currently only available to US customers. Hopefully we'll have a cheap and trustworthy payment service here in the UK soon too.