4 ms·

I think I better understand here. One way to further reduce risk is not actually charge the card until the product is delivered and buyer/seller happy. The init

I think I better understand here. One way to further reduce risk is not actually charge the card until the product is delivered and buyer/seller happy. The initial charge would only be an authorization for the amount to make sure there were enough funds to cover. Either that or do a simple $1 authorization to make sure the card is valid. Either way the actual charge though would not be processed until buyer and the seller are happy. Also, I would make sure that your terms & conditions on the site clearly outline every detail and protect you from liability. From the US side I have never seen banks out right refuse as long as your personal/business credit is good and you would qualify for a merchant account under normal circumstances. Most here simply require a greater reserve and/or charge a higher percentage. I do know that Visa has some special requirements such as filing an application direct with them, paying a premium application fee, and then an annual fee on top, but I am not sure about the other cards. You may want to talk to your bank directly. Go in with all the details, a flow-chart of how the process works, have the website ready to go, and all the details for your company/founders. It is sometimes easier to talk to a person face-to-face and have them understand clearly what you are trying to do. It may simply be that you are not explaining it clear enough for them to understand your business process.

kerryfalk 16y ago
Your suggestion could be a possibility but it then introduces fraud on behalf of the buyer that we'd have to account for and put more thought into. We've got the Ts & Cs fairly well covered, that's an evolving document though, I think. Perhaps this is a Canadian bank issue, I'm really not sure yet. Our experience has been that every processor we've talked to (And thereby their Acquiring Bank) has told us they couldn't get the model approved before we had gone through the application process. If you're saying that it doesn't seem to be a problem then I'm going to have to go back to the drawing board and scratch my head a bit. There are companies like AirBnB and Yardsellr that have been approved recently.
- jeffmould 16y ago
  Yes, buyer fraud could be a problem in this scenario and is something that would have to be accounted for. I am not saying it isn't a problem, just that you should expect to have to make concessions in the form of higher reserves and/or fees. Many companies do similar, if not the same, scenarios so it is definitely not impossible or something that is so difficult to accomplish that it is avoided at all costs. From the sound of your response, you have not gone through the application process as of yet, you have just been talking with processors. If this is the case I would suggest going through the application process. They, like you, are trying to reduce risk and are most likely not going to tell you upfront that they can get it approved or not. Try http://globalpaymentsinc.com http://globalpaymentsinc.com I had a customer who used them in the past and was very pleased with their service (although they were selling directly). They offer service in Canada as well.
  - kerryfalk 16y ago
    There are two processors that we've gone through the application process with, Global Payments and PayPal. Both denied us citing the business model being the factor they couldn't get through the risk department at the Acquiring Bank.
- deleted 16y ago
  [deleted]

kerryfalk 16y ago

Your suggestion could be a possibility but it then introduces fraud on behalf of the buyer that we'd have to account for and put more thought into. We've got the Ts & Cs fairly well covered, that's an evolving document though, I think. Perhaps this is a Canadian bank issue, I'm really not sure yet. Our experience has been that every processor we've talked to (And thereby their Acquiring Bank) has told us they couldn't get the model approved before we had gone through the application process. If you're saying that it doesn't seem to be a problem then I'm going to have to go back to the drawing board and scratch my head a bit. There are companies like AirBnB and Yardsellr that have been approved recently.

jeffmould 16y ago
Yes, buyer fraud could be a problem in this scenario and is something that would have to be accounted for. I am not saying it isn't a problem, just that you should expect to have to make concessions in the form of higher reserves and/or fees. Many companies do similar, if not the same, scenarios so it is definitely not impossible or something that is so difficult to accomplish that it is avoided at all costs. From the sound of your response, you have not gone through the application process as of yet, you have just been talking with processors. If this is the case I would suggest going through the application process. They, like you, are trying to reduce risk and are most likely not going to tell you upfront that they can get it approved or not. Try http://globalpaymentsinc.com http://globalpaymentsinc.com I had a customer who used them in the past and was very pleased with their service (although they were selling directly). They offer service in Canada as well.
- kerryfalk 16y ago
  There are two processors that we've gone through the application process with, Global Payments and PayPal. Both denied us citing the business model being the factor they couldn't get through the risk department at the Acquiring Bank.
deleted 16y ago
[deleted]