Unusual payment requirement

Nochex, PayPal, etc - is there a way I can avoid transaction fees?

[jjacuk]

Hi. This is my first post. I've had a glance around and I don't think this is already covered, possibly as it's quite unusual.

I have a business idea that will seem quite far-fetched without being able to tell you the full story. It requires me to be able to allow people to make payments. The money is then stored for a period of time, before *all* of that money is passed on to another user. Trust me on this one ;-)

The plan in the longer term would be that I earn interest on the money whilst it's being stored. Happy to receive advice about the feasibility of that, but my question really is about finding a short-term transaction handler for now...

I need to get the site established. I'm prepared to make no interest initially, and even to make a loss on fees. As such, it would be ideal if there was a payment handler that charged for withdrawals (as I wouldn't make any) rather than transactions - are there any?

Failing that, I'd just be grateful of advice on lower fee handlers.

The payments would be anywhere from £20 ($40) to £200 ($400) generally.

Thanks for any advice.

[ByronM]

To be honest, processing fees would be so high that a monthly interest amount would only add up after you achieve an astronomical base amount and by then you would be looking at other investment opportunities other than interest to cover your costs.

Not to mention many processors wouldn't cover you unless you're registered as an investment/risk based financial company in the states you plan to operate in.

[jsinger]

Looks like a variation on the notorious E-Gold only without the gold (assuming E-Gold actually has any gold reserves LOL).
[en.wikipedia.org...]

Has some aspects of a bank which might trigger immense regulatory requirements in many venues.

in the states you plan to operate in

More likely he's thinking of the Caymans or Nevis or some other "free thinking" Caribbean isle.

[jsinger]

Nochex, PayPal, etc - is there a way I can avoid transaction fees?

So you want to create a complex payment system from scratch just to avoid the reasonable transaction costs (2-3%) associated with Paypal and the like? Your replacement system would obviously be even more costly to operate unless you're moving hundreds of millions of dollars.

Tell us your real reason for doing this.

[jjacuk]

Thanks for your comments guys; my idea's looking pretty flawed it seems! The site wouldn't be a payment system as such - it would cater to a completely different market to Paypal, etc. It also wouldn't be doing anything criminal or immoral.

The hope eventually would be that there'd be enough payments to enable me to move to making profit from interest (and other opportunities), but I need to think about options for passing on the fees to begin with...

Other thoughts welcome but cheers for the comments so far.

[jsinger]

enable me to move to making profit from interest

Bad timing. Short term interest rates in the U.S. are close to record lows. 1-year T-bills are currently paying 2.14%.

Excuse my rudeness, but we've gotten several similar questions over the years where the goal was clearly tax evasion and/or money laundering.