Business To Business Payment Solution 2

[ice78991]

New to this and I am looking into setting up a website which allows businesses to pay eachother for services rendered. How could I go about setting this up. Should I look into paypal ? Should I get each business to set up their own merchant account with the same bank ? Or is this not possible.....should I stick to allowing businesses to pay eachother by cheque and just monitoring the payment process ( ie check sent , check received etc) Does anyone have any experience/advice on this?

 

[CoreyBryant]

Well you don't want to get into factoring / aggregating funds. You could, but it costs quite a bit to set up. Consider getting each business to open an account but also check to see what Levels (Level I, Level II, Level III) would be needed. And check to see what type of rate you can help them get set up for non-qualified rate


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Corey

http://www.loudcommerce.com/

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http://www.loudvoicesystem.com/

 

[ice78991]

Thanks. Are you talking about using a system like paypal? Would companies be happy with this in your experience. My ultimate aim would be to set up a system where businesses could enter their bank account details and send funds to eachother that way. I assume that I would set up a company bank account so if A wants to pay B then A would transfer funds into my account and I would tranfer funds to B's account. I'm sure this is expensive to set up but is it possible and if so where should I start looking. Would you begin by approaching a bank and discussing a system with them. Things are further complicated by the fact that I am in the UK and some tranfers may occur between US companies ( but the majority between UK companies). What option would you advise ?

 

[johnwm]

The simple answer (as per your previous question on the same subject) is to use PayPal. However many of the larger companies may not have facilities to use Paypal. Most of the UK high street banks will provide electronic access to accounts for paying in, but it will be quite hard work to automate anything to do with taking money.

Many limited companies, both public and private, will have restrictions about opening bank accounts (which includes on-line banking like Paypal) so you may need to talk to your customers to check feasibility.

If I were you I would speak to my accountant/lawyer before processing other people's money through your own account. There are likely to be tax implications and questions about money-laundering which you need to consider.

I note from your stats that you don't seem to be getting what you want from these forums, with 89 questions asked and only 49 responses to the answers to those questions, and only 7 of the answers marked as helpful. Check out faq222-2244 which may help you ask better questions (if you're not getting the right answers) or show how to acknowledge helpful answers (if you are getting them). Paragraph 16 also reminds us all about giving AND taking.

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[CoreyBryant]

Are you talking about using a system like paypal?

Not really because then you would be an IPSP (Internet Payment Service Provider) and that can be very costly to set up. Unless of course you want to go down that road.

Would companies be happy with this in your experience.

I doubt it but you never know.

What option would you advise ?

Consider some multiple gateways (Protx, LinkPoint) and IPSPs (Paypal, 2CO). You might even have luck with a company like Nochex.

I am not too familiar with UK companies and processing unfortunately, but if you are able to connect to a few gateways and IPSPs (like most shopping carts do) and then refer the merchant over to a URL and hopefully that URL will then give you credit for the sale to the (new) merchant.

Now your merchant can enter the proper information and process the transactions.

__________________________
Corey

http://www.loudcommerce.com/

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http://www.loudvoicesystem.com/

 

[ice78991]

Thanks for clearing that up. It seems to me that because I am just starting off and do not want to risk a huge financial outlay my best bet would be to try paypal. I could ask each company to set up a paypal account ( which is far easier than settng up a merchant account) and then I could verify against that companies particular account ( does that sound feasible ?)

In the future I would like to be able to implement a system where 1 company could pay 2 companies for services rendered with 1 click. Are there any examples that you know of on the internet of this , is this possible?

 

[ice78991]

I'll hope there's not too much resistance to paypal

 

[CoreyBryant]

I could ask each company to set up a paypal account ( which is far easier than settng up a merchant account) and then I could verify against that companies particular account ( does that sound feasible ?)

Yes it does. At one point, Paypal offered an affiliate program - you might see if it still does.

Are there any examples that you know of on the internet of this , is this possible?

A lot of shopping carts off you the ability to integrate with multiple gateways or IPSPs. Choose almost any shopping cart you will see they are compatible with a lot of the gateways.

__________________________
Corey

http://www.loudcommerce.com/

|

http://www.loudvoicesystem.com/

 

[ice78991]

Thanks. I'll contact paypal and let you know the results