Forum Moderators: buckworks
My account allows me to create a unique store for different sites.
I can create logins and give them limited access to specific sites for report access.
I have had a company that is extremely well known here and is a quite large company. They have come to me to ask if they can use my account to process CC.
The reason?
1) They started off with a PayPal solution but they are getting too high of an abandonment rate and don't like it.
2) They are under an extreme time crunch and don't want to go through the time consuming process of getting their own set up.
3) They only need this service for 9 months.
I am wondering if anyone has done anything like this. They are offering half a point as it rolls through.
They rented a cruise ship to anchor off port in Vancouver for the 2010 Olympics and are renting rooms. This is in response to the shortage of hotels for the event.
My account allows me to create a unique store for different sites.
Even if all is well and good according to the ToS, how do the charges appear on the customers' credit card statements? No matter how many times you explain it to customers, they are still going to issue chargebacks because they don't recognize "Demaestro's Store" when they buy from "Floating Hotel Rooms." Those chargebacks are going to come to you and potentially affect YOUR merchant rating.
Other than that, I definitely like the company's idea for renting a cruise ship for extra hotel rooms- utterly brilliant!
I have been through the TOS and don't see anything but your point about the company name on the statement is valid and I can't believe that the thought hadn't occurred to me I didn't discuss this with them when we talked about it.
The only thing I can think of as a solution to that is through out the checkout process to point out that the charge will appear as Demaestro's store not "travel company name". Or even I can do something like... "Checkout process brought to you by "Demaestro's Store" and then mention that this is the name that will appear on your statement.
Thanks LIA
I think they did the same thing with cruise ships in Atlanta but I am not sure. It really is a golden idea. I think they projected $50 million to fill capacity, even if they do 10% of their bookings online....I will get half a point which could equal some big $$ with little to no work.
I have been through the TOS and don't see anythingJust to be on the safe side, it's probably worth asking your CC processor and getting approval in writing.
The only thing I can think of as a solution to that is through out the checkout process to point out that the charge will appear as Demaestro's store not "travel company name". Or even I can do something like... "Checkout process brought to you by "Demaestro's Store" and then mention that this is the name that will appear on your statement.
We try the same thing- main site is very related to LIA, but more specialized (country-level instead of continent-level). The checkout form is on the LIA site, all the reservation messages are from the LIA domain, all the communications say "Thank you for shopping at LIA," etc. But we still get inquiries (and the occasional chargeback) from customers who still don't get it.
So you can try as much as you can, and just have to accept the actions of the remaining idjits as the cost of doing business.
The other main issue is trust- how well can you trust this company? Remember that the chargebacks will be coming back to you directly and may still come in for 6 months after the other company is done using your processing. Just remember that
extremely well known here and is a quite large companyalso applied to Enron, Countrywide, Circuit City, Washington Mutual, etc. :(
Anyway, assuming that you know the risks going into it, it sounds like it could be a great opportunity. But definitely do all you can beforehand to minimize and protect yourself from the associated risks.
[edited by: LifeinAsia at 12:47 am (utc) on Feb. 24, 2009]
do not step into the area of financial services without having a thorough understanding of what you are getting into.
Thanks all
Good for them, bad for you, even the point number doesn't sound that thrilling for the exposure involved.
I was going to move to the lawyers because I was willing to do it if the company agreed but I can't see how they would seeing as they declined their application.
Although I don't what I would have done about that since I met this other party through my lawyer. It is his lawyer too so....
Anyway thanks for the advice, the money would be nice but not at the expense of everything else I have going on.
They have come to me to ask if they can use my account to process CC.
Correct me if im wrong, but this sounds like factoring, and the credit card company will drop you like a rock, when they find out.
What's there to explain?
You would have to pay taxes on the money you are receiving into your company on their behalf either way. Must be much more then the half point they are offering you in return.
This whole thing sounds wrong. They are having a cruise ship dock near Canada, yet they cannot arrange a payment processor? Does not sound like a business who needs to use PayPal to me.
I wonder if there is a caveat whereby they could declare their payment from you tax free because the cruise ship sits in international waters.
The IRS is in the reward game these days. Rewards range from 1% to 15% of amounts the IRS collects as a result of the whistleblowers information, including taxes, fines, and penalties, but not interest, up to a maximum of $10 million.
