need opinions on new online payment system

[johnderek]

I am implementing a pay system that will allow clients to have their customers purchase items online with a credit card. They will not need to be approved for a merchant account or anything else. We will provide the service of completing the transaction verifying the credit card and the inventory. Then sending a confirmation receipt to our clients customer and a pick/pack pink slip directly to our clients site for picking and shipping. Our customer will be provided with a Fedex ground label and bar code for tracking and shipping. We will verify the credit card holders address and only ship to that address and track the shipment to ensure the cutomer receives the product. We will not release the money untill the verification of receipt by the customer.
We are presently setting up the demo of this transaction online for potential clients to view and have some important questions to ask you for your opinion.

1. We are considering charging a minimum $10.00 canadian service fee on top of the typical 3.5% visa or master card charges.
2. trying to decide whether or at what level to add an additional charge of 1% increments say above $1000.00
3. Deciding whether this service is viable and in demand on the internet and who would be interested.

I would really appreciate your opinions on this and would like to confer or share information with you on online payment systems.
To this point I have discovered quite a lot of payment systems online but most require the client to get approval for a merchant account or have prohibitive fee structures in place or can not deliver on what they promise in the end.

Cheers,

Derek
KTN

[Shak]

derek,

interesting concept, and had you been in London, I would have liked to chat to you about this over a cup of coffee :(

Shak

(btw, may I suggest there is no need to cross-post this message in different forums, only confuses matters)

[USMerch]

Sounds like a very nice idea, but the legal specifics could get really prohibitive, really fast. I personally wouldn't mind paying extra and waiting for payment until confirmation of delivery, but for the extra expense and delay of cashflow, I would want an iron clad guarantee of no-chargebacks to me.

There are plenty of services where I can pay a very small percentage, get my cash for my products before shipping, and risk loosing the the cash and the product.

Want to be the killer app for ecomm sites that they will pay a real premium for? Guarantee that you'll never allow a chargeback for items actually delivered, and you'll have that killer app. Sure, more risk for you, but with your system you are the one doing the verification, so any blame for not catching fraud is on you anyway in the eyes of the merchant.

Pay more and put up with delayed payment? With a guarantee it's a winner, with the same game of russian roulette with the additional rule of having my hands tied behind my back and my eyes closed to verification it is worth less money, not more.