Home – New Forums New here? Share your story Alternative to Escrow Type Payment

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  • #997232
    Travelfiltr
    Member
    • Total posts: 3
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    Hi,

    I’m wondering if anyone could point me towards a good payment system.

    Our business will be conducted online, and we’ll be acting as an interface (online & app) between customers and service providers.

    So, a customer will input the requirements over our app and this will be sent out as notifications to our sevice providers, they’ll message eachother and come to a price.

    The customer will then pay for the service in advance (our fee included), we will receive the transaction from customer and hold the funds until the service is performed, then if everything goes well the funds will be released to the provider.

    I have looked at escrow type payments as this seamlessly works in an automated fashion. But we are looking at minimum1.75% fee plus our minimal percentage which will be between $10-$30. At this rate the escrow business provider will be making substantially more than us and in some cases up to $200 per transaction when we plan to only charge up to $30. Is there a way that payments can be automated to take a set fee or percentage before paying our service providers???

    Our business model will only work with lower fees and the high coast of Escrow type payments will really eat into our profit margin for services offered at the low and high end of sales. Essentially just the cost of 1.75% will be enough to put our service providers off side and not embrace our business setup

    We have considered holding the funds on their behalf but I’m trying to automate the process as much as possible.

    Any ideas or recommendations will be much appreciated.

    Thanks!

    #1211005
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
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    Hi And Welcome to Flying Solo [USER=100635]@Travelfiltr[/USER] . It is great to have you!

    Thanks for joining and posting today.

    Hopefully some helpful members will be along soon with some on-point advice.

    Cheers

    #1211006
    Travelfiltr
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    Thanks Paul

    Hopefully a few people can throw a few ideas or point me in the right direction

    Thanks
    Chris

    #1211007
    Mischelle
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    Hi Chris,

    There are a few options, which are non-escrow.

    But I think an escrow type setup is really the good option for auto payments and ensure trust by the clients etc. I am not sure who you looked at, but an Australian company does this for marketplaces.

    https://www.checkvault.com.au/marketplaces/

    THE OTHER option is less known and that is PayPal Marketplace (Managed Path) and harder to get as it limited at the moment.

    https://www.paypal.com/us/selfhelp/article/what-integration-methods-are-available-for-paypal-for-marketplaces-ts2126
    https://developer.paypal.com/docs/marketplaces/managed/

    This gives control of payments “once”a condition is met IE work complete.

    THE QUICKER option is PayPal Adaptive API (Delayed Chained Payments). Where you are the 1st receiver of your % and delay payment to the 2nd receiver until conditions are met IE goods delivered or service provided.

    https://developer.paypal.com/docs/classic/adaptive-payments/integration-guide/APIntro/

    That’s all I can think of at the moment

    Cheers
    Mischelle :):)

    #1211008
    Travelfiltr
    Member
    • Total posts: 3
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    Hey Mischelle,

    Thanks so much for the detailed reply

    I’ll contact Checkvault to get some detail on pricing as the website isn’t very forthcoming with information. Paypal options just seem to be too expensive from the brief look I’ve had this morning……but your help was certainly invaluable.

    I’ve been in contact with Assembly Payments/Promisepay and these fees are 1.75%……doesn’t sound like much but when you have a 15k transaction that’s $262.5 before I charge my fee, thus making my services way to expensive

    I’ll keep on searching

    Thanks again
    Chris

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