Home – New Forums Selling online Merchant Facility Rejections

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    I have been setting up a brand new site to take advantage of the growing Peer To Peer Lending industry in Australia. I have now come across a hurdle when it comes to accepting payments on the site. The banks are not willing to provide a merchant account, Paypal are not interested, and a couple of other payment processors have also said no.

    Obviously, there are risks involved in this industry, and I am sure that the banks are not likely to offer us the service especially with no trading history, but are there any other options that I could consider?


    • Total posts: 11,464

    Hi Chris,

    That sounds very frustrating!

    We have some forum members around here who are very experienced in merchant accounts and such things though, so hopefully someone will be able to give you some ideas and insights.

    In the meantime, thanks for joining Flying Solo, and welcome aboard :)


    • Total posts: 524

    Sorry Chris, I started writing a response to this and got sidetracked!

    The news is pretty much all bad from my experience. From the sounds of it (and please correct me if I’m wrong) you’re trying to setup a system where ‘lendors’ could fund a wallet style account and pay to ‘borrowers’? (You’re essentially becoming an aggregator here)

    The banks will only approve merchant accounts for 2 things. Products and services, and both must be provided ASAP after the purchase occurs, normally up to a max of 3-5 days and after that it starts getting difficult to get approved.

    These days, even businesses such as web hosting are finding it difficult to obtain merchant accounts because they’re offering a subscription for a service in advance (usually a month) and on products (web servers) that they don’t hold.

    I’ve mentioned this example because it’s strangely close to your model of taking a payment for a service that is going to happen over a long length of time (a loan) for a product that you don’t physically hold.

    You’ve then got the added risk of being an aggregator which in Australia is near impossible to be approved for.

    The only service that comes to mind that would actually allow this is Bitcoins, however the nature of the service makes it pretty unattractive.


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