If I want to setup my own Paypal processing site, where do I start?

[boofhead]

Hello all -

If I want to setup my own Paypal processing site, where do I start?

I am tired of paypal rules, regulations and restrictions -have had my account closed, but have never had any chargebacks or fraudulent users, and looking at starting up my own. Would anyone know where to start or who to contact?

I would appreciate pointers, comments and any problems others have had in attempting anything like this.

Seriously, (and sincerely),
Boofhead

[bird]

First, you will need a few dozen million dollars seeding capital, and a bunch of really good international lawyers to get you by the various banking regulations. Once you have all this, solving the technical problems will be easy in comparison... ;)

Note also, that any cc processing service is bound to the terms of the credit card companies. So if you have been kicked from Paypal because you run an online casino (just an example, there are other possibilities), then that wouldn't fly with your own cc processing company either.

[jacobl]

Instead of reinventing the wheel, I'd just find a better wheel! Payquake is a great alternative!

jacob

[boofhead]

Thanks for your comment, however, the dough is no problem.
Perhaps I should have been a little more specific...

I am wondering if there are companies out there who specifically help with this kind of setup? After all, there are plenty of them now...

-boofhead

[jimbeetle]

>>dough is no problem

Oh, nevermind...

[pbreit]

Good luck!

[bankman]

Hi Boofman

If I understand you right what you are trying to do is set up a payment intermediary that will (depending on jurisdiction and your business model) accept deposits, store value, provide merchant and subscriber accounting, clear, settle, report and provide dispute resolution.

The good news is that this is not that hard. In terms of effort 99% of it goes towards clearing regulatory hurdles (for your and your customers benefit), tech is only 1% of effort. And yes there are companies and consultants who advise on these issues. What you will find is since May 2002 when MasterCard announced new aggregator rules (which incidentally almost derailed PayPal) they have given a great push to the alternative intermediary industry (also known as PSPs or payments servive providers)

The bad news is that in the past 2 - 3 years of the (to my estimate) over 1,200 players that have tried this probably a hundred are left standing. However these players are prospering and are viable long term.

You do not say whether you are setting up an intermediary for your own use or to re-sell a la Firepay et al. Either way you do not need significant capital to build a technically effective and regulatory compliant solution. What you do need is good advice and a clear idea of why you are doing this. Feel free to contact me if you want more information.

B

[boofhead]

Hello Banker,

Will send you private sticky mail to this site.

Thanks.
Boofhead :)