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Once you are in the business of accepting payments from some people and dispensing them to others, you are playing an entirely different game from a regulatory

Once you are in the business of accepting payments from some people and dispensing them to others, you are playing an entirely different game from a regulatory standpoint.

callmeed 15y ago
How so? You're simply now a "Third Party Payment Aggregator". We do this with one of our products and we're a small operation. In my experience, the hard parts are getting initial approval from a merchant/bank and dealing with fraud. But I don't know of actual government regulations.
- gravitronic 15y ago
  Based on the tax forms I've had to fill out whenever I've joined an app market or affiliate network, there is definitely government regulations with tax filing. My assumption is that since you're collecting money that is 3rd party's profit, you need to show the paper trail that you're holding this money in escrow for a 3rd party. This is why ebay transactions are buyer<->seller and then you're billed at the end of the month. Lightens the admin burden.
  - dangrossman 15y ago
    > Based on the tax forms I've had to fill out whenever I've joined an app market or affiliate network You mean the form W9 they have you fill out to provide your taxpayer identification number? That's so they can send you a 1099-MISC if needed. Any business that pays a non-employee individual over $600 in a year for any service (with a few exceptions) files a 1099-MISC, it has nothing to do with payment aggregation.
    - gravitronic 15y ago
      .. Right. And if your business is based on aggregating and paying out non-employee individuals then you will be filling out a lot of those documents, which becomes a significant added admin overhead...
- pbreit 15y ago
  You might be classifiable as a money transmitter in which case you would possibly be regulated in your state as such.