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  1. #1
    Join Date
    Oct 2002
    Madison Wisconsin

    Want to start a 3rd Party CC Processer

    Want to start a 3rd Party CC Processer but i need a company that I can clear the transactions throught.... anyone know of one??

  2. #2
    Join Date
    Apr 2004
    Are you asking how to start a third party processor? Have at it, it takes anywhere from $500,000 to $2,000,000 to become one. You have to have cash and a whole bunch of bank connections. (something like that). Or are you asking about how to get a 3PP so you can accept CC's from people? If so, go with Chris @ CDGcommerce.

  3. #3
    If you are thinking of starting a 3 party CC processor:

    I strong urge you not as without sounding insulting. You wouldnt have to post to these forums to ask. All 3rd party processors and run be persons who have lenghty experience in the banking industry. You have be good in Risk assesment and have a very good banking hat on

    If i was you i'd follow the reseller route by working as a ISO. Someone suggested Chris above and he comes highly recommended. However if you require international support you could try as they cover everwhere bar the USA.

    Hope this helps..


  4. #4
    Join Date
    Aug 2003
    Chesapeake, VA
    Philman and 74s3 are right on target. And thanks for the kind words.

    In earlier years, becoming a 3rd party processor was not as difficult but today - it is nearly impossible to even get underwritten by a bank for such a service. Most banks will not even touch it or consider it under ANY circumstances.

    In addition, even assuming that you had the significant amount of capital AND the proper relationships in the banking industry to convince a bank to underwrite you... you have a myriad of logistical issues to evaluate and overcome.

    One major mis-step in risk management and you can be out of business and owing thousands of merchants money. If your chargeback ratios get too high - same situation. You WILL take losses due to fraud - it is inevitable - and you would need the capital in place to absorb these losses while staying in business.

    You would need the technology in place to handle fraud scrubbing, order processing, payment disbursements and reporting.

    You would need to build your own front-end system to interface with the various shopping carts and billing packages on the market today - and get their support in the process to integrate into your API.

    You would need a support staff to handle pre-sales, new account, merchant/customer/technical support and risk management... and you'd need to have a veteran team for the IT, Risk Management and Development part of the biz.

    You'd of course also need to setup the necessary server and network facilities for this as well. You'd need to go through the Visa CISP compliance program and audits which by itself is a very non-trivial, arduous and expensive process. You would also need to register with Visa and MasterCard, again persuant to yet another level of scrutiny.

    My hope is that by outlining all of the above, it explains "why" a lot of us say what we say regarding this. We aren't trying to burst your bubble and I can see why a 3PP biz seems enticing but there is so much "beneath the surface" that you should be aware of prior to considering actually starting such a business. - Trusted Merchant Account Solutions since 1998
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  5. #5
    Reselling merchant accounts is far more profitable these days. You only have to view google adwords to see that most of the advertisers are simply selling the information to merchant providers.

    I agree with Chris above that we're not trying to burst your bubble I have even though about it myself and decided the cost and risk was just to much for my liking.



  6. #6
    Join Date
    Jul 2003
    Castle Pines, CO
    There was actually another thread about this a few weeks ago (I tried to search for it - but could not some of the keywords). We did start up one for the medical field / employee benefits & then branched it out to South America. I talked them into branching it out to other parts - basically starting up other companies & outsourcing it from the main company. This helps to keep the liability off the main company just in case.

    I do not recommend it at all. You have to have emmaculate credit. It takes a lot of time & patience. We do have a bank that we use. We outsourced a lot of the customer service thru First Data - they are the largest processor in the world. They own Telecheck & Western Union. I depise dealing with corporations so we did have a lot of problems.

    Was it worth it? I still have not decided on that. It is a nice set-up I will say. A fantastic idea (since it was mine of course ) - but pulling it - that is an entirely another procedure.

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