Home – New Forums Money matters Accept payments on behalf of customers for a fee

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  • #997205
    Samv
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    • Total posts: 5
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    Hi

    Not really sure how to explain this but let’s see.

    If for example I wanted to accept payments for my customers for online services so that I can keep my fee, what is the best way to go about this?

    If I used something like Paypal,there would be fees charged twice, is that right? Especially with international payments.

    This is the payment model I am thinking of:
    1. Customer pays me for services offered by someone on my site.
    2. I pay that someone after I have deducted my fee.

    Sorry if it’s a silly question.

    Thanks

    #1210909
    Trent Tran
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    • Total posts: 166
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    It sounds like a dropshipping if you are selling products
    or White label digital services: you engage a specialist and you are the middleman with your brand

    Paypal fee is payable by payers (sellers). Receiver received full amount I think?
    Fee occurs when you pay your specialists not when you received from your customers.
    Oversea transactions are expensive but that is part of the cost. You can’t risk asking buyer pay your specialist or your supplier directly anyway. So you just have to mark your price up

    #1210910
    John Debrincat
    Member
    • Total posts: 963
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    Samv, post: 251748, member: 87516 wrote:
    Hi

    Not really sure how to explain this but let’s see.

    If for example I wanted to accept payments for my customers for online services so that I can keep my fee, what is the best way to go about this?

    If I used something like Paypal,there would be fees charged twice, is that right? Especially with international payments.

    This is the payment model I am thinking of:
    1. Customer pays me for services offered by someone on my site.
    2. I pay that someone after I have deducted my fee.

    Sorry if it’s a silly question.

    Thanks

    Hello [USER=87516]@Samv[/USER] it is not a silly question but it is a tricky situation and one that you need to be careful with. It is not really like drop shipping. With that situation the payment provider seems you as the merchant / seller and onus is on you to deliver the product.

    What you are describing is more like a marketplace where you have multiple sellers listed on your website and you collect money on their behalf. I think you will find that PayPal won’t allow this unless you set up a specific arrangement with them. From a payment provider viewpoint you become the Master Merchant and your sellers (services providers) are the merchants. Most payment providers would rate this as high risk and require some extra fees or protection.

    In any case be careful. You are in a situation where you are totally responsible for the sale, collection and hence delivery of the service.

    John

    #1210911
    Samv
    Member
    • Total posts: 5
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    Grandawood, post: 251757, member: 66994 wrote:
    It sounds like a dropshipping if you are selling products
    or White label digital services: you engage a specialist and you are the middleman with your brand

    Paypal fee is payable by payers (sellers). Receiver received full amount I think?
    Fee occurs when you pay your specialists not when you received from your customers.
    Oversea transactions are expensive but that is part of the cost. You can’t risk asking buyer pay your specialist or your supplier directly anyway. So you just have to mark your price up

    Thanks for the information and for telling me what it’s called.

    #1210912
    Samv
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    • Total posts: 5
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    John Debrincat, post: 251761, member: 2969 wrote:
    Hello [USER=87516]@Samv[/USER] it is not a silly question but it is a tricky situation and one that you need to be careful with. It is not really like drop shipping. With that situation the payment provider seems you as the merchant / seller and onus is on you to deliver the product.

    What you are describing is more like a marketplace where you have multiple sellers listed on your website and you collect money on their behalf. I think you will find that PayPal won’t allow this unless you set up a specific arrangement with them. From a payment provider viewpoint you become the Master Merchant and your sellers (services providers) are the merchants. Most payment providers would rate this as high risk and require some extra fees or protection.

    In any case be careful. You are in a situation where you are totally responsible for the sale, collection and hence delivery of the service.

    John

    Thanks John.There are definitely some things I need to think through,

    #1210913
    Samv
    Member
    • Total posts: 5
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    Racking my brain trying to find a better solution for this,
    It’s my risk if i don’t handle payments but my risk if I do.
    If I had to choose I think for my situation, I would have to choose to handle them myself since it will be small scale. I am also able to deliver the service myself if something did go wrong.That and focusing more on month-to-month or 3-6month packages rather than annual ones,till the service provider has been with us for a certain amount of time and has some credibility.

    #1210914
    Adam Martelletti
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    • Total posts: 47
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    Credit card fraud is a huge business online, You would be opening yourself up to a lot of liability. Depending on what service you are trying to provide you might be better off looking at an affiliate agreement and platform with the suppliers. That way the supplier is taking the payment then they pay you a commission for finding them the work.

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