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  1. #1

    Question Selling third-party products using EU merchant account?

    Hi!

    My company is located in Europe.
    Our newest project is: Payment Gateway.

    We've contacted our local banks and they told us that if we want to do that kind of service, we'll need PCI Compliance hosting and payment operator license.

    We have the PCI hosting, but the license is 25,000 EUR in Bulgaria.

    Since we don't want to pay that kind of money, can we open a merchant account and sell third-party products?

    This is the project's idea:
    1. John have online store and create an account with us;
    2. If he does not sell prohibited products we provide him Buy Now buttons;
    3. His customers got redirected to our site for making the transaction and our site sends some kind of API request to the merchant account provider with the transaction info

    Which company can allow that?

    Thank you!
    Kind regards, Hristo.

  2. #2
    Join Date
    Aug 2011
    Location
    Chicago
    Posts
    89
    To the bank they see no difference between what you are trying to do and what Paypal / Moneybookers Skrill do. Regardless of those examples being huge companies any 'sort of 'Payment Service Provider' big or small is lumped in the same risk category. There are plenty of smaller PSPs who give you a sort of 'Master' processing account by which you can accomplish what you seek to achieve.
    High Risk Merchant Consult

    Unbiased Payment Solution Analysis since 2001_ info[at]highriskmc.com

  3. #3
    Thank you for the info.
    Can you suggest me some of these small PSPs?

    Because I asked many companies and they refused me, since they don't know what will be the third party's products.

  4. #4
    It won't be so easy...

  5. #5
    Anyway, I've already started e-wallet system with merchant tools (Buy Now buttons etc.), like PayPal.

    It's using Authorize.net API for credit transactions.

    Does anyone knows how is it called for debit transaction?
    The withdrawing to the card like on PayPal?

    Since currently we support withdrawing only to a bank with wire transfer.

  6. #6
    Join Date
    Dec 2012
    Location
    New York
    Posts
    382
    Quote Originally Posted by htorbov View Post
    Anyway, I've already started e-wallet system with merchant tools (Buy Now buttons etc.), like PayPal.

    It's using Authorize.net API for credit transactions.

    Does anyone knows how is it called for debit transaction?
    The withdrawing to the card like on PayPal?

    Since currently we support withdrawing only to a bank with wire transfer.
    I think this is against EU payment directive.
    You need to be registered with some EU authority to be able to process payments for others. I am trying to search this for my self. No luck and very less online resources.
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  7. #7
    Join Date
    Dec 2006
    Location
    Europe
    Posts
    1,112
    OMG, you really need to do your homework before you proeed with your payment gateway project. From what you wrote so far, you have no clue about what business you try to enter.

    If you don't have plenty of money you better find some other project to spend your time, because this business is only for people who know what they are doing.

    Just a friendly advise, don't blame me, you can do exactly what you want I don't care.

  8. #8

    Talking

    Hi htorbov!

    No worries! You should try out:
    1. Paypal - safe and reliable
    2. Google Wallet - it's cool and easy
    3. iPay 88 - reliable Malaysian payment gateway.

  9. #9
    Join Date
    Oct 2013
    Location
    L.A.
    Posts
    52
    You won't be able to buy into a gateway or create one for less then $25k euros. Probably 2-3x that.
    However you can rent one for a few thousand dollars per month and/or a small cut of transaction fees.

    two issues w/ the merch account idea:
    - no underwriter would to knowingly allow you to do what you are proposing . The merch account is approved for your business not any number of other unknown businesses.

    - on your end ..you would risk having your entire account frozen/closed if a single merchant did something wrong/fraudulent .

  10. #10
    Join Date
    Aug 2011
    Location
    Chicago
    Posts
    89
    Quote Originally Posted by @alternativepayments View Post
    You won't be able to buy into a gateway or create one for less then $25k euros. Probably 2-3x that.
    However you can rent one for a few thousand dollars per month and/or a small cut of transaction fees.

    two issues w/ the merch account idea:
    - no underwriter would to knowingly allow you to do what you are proposing . The merch account is approved for your business not any number of other unknown businesses.

    - on your end ..you would risk having your entire account frozen/closed if a single merchant did something wrong/fraudulent .
    Very true especially if you got setup with a Merchant account through Authorize.net.

    Dont know anyone off hand offering debit card withdraw svcs for eWallets but there are plenty just spend some time on google.

    Its possible to get registered PSP status in Mauritius as well and though capital requirements are less than EU it ain't cheap or easy. Again there's a number of smaller PSPs offering that type of service where you are not actually a PSP but may have a white labeled gateway service of your own, you still have to run each client with proper KYC for approval with the parent PSP company is all.
    High Risk Merchant Consult

    Unbiased Payment Solution Analysis since 2001_ info[at]highriskmc.com

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